The Tax Credits (Interest Rate) Regulations 2003

Interpretation

2.  (1)  In these Regulations—

“the Board” means the Commissioners of Inland Revenue;

“established rate” means—

(a)

on the coming into force of these Regulations, 6.5 per cent. per annum;

(b)

in relation to any date after the first reference date after the coming into force of these Regulations, the reference rate found on the immediately preceding reference date;

“operative date” means the sixth day of each month;

“reference date” means the day of each month which is the twelfth working day before the sixth day of the following month;

“tax credit” means child tax credit or, as the case may be, working tax credit, provision for which is made by the Tax Credits Act 2002;

“working day” means any day other than a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882(1).

(2) For the purposes of regulation 4(2) the reference rate found on a reference date is the percentage per annum found by averaging the base lending rates at close of business on that date of—

(a)Bank of Scotland;

(b)Barclays Bank plc;

(c)Lloyds Bank plc;

(d)HSBC Bank plc;

(e)National Westminster Bank plc;

(f)The Royal Bank of Scotland plc,

and, if the result is not a whole number, rounding the result to the nearest such number, with any result midway between two whole numbers rounded down.

(1)

1882 c. 61. Section 92 was amended by sections 3(1) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).