2015 No. 128
The Revenue Scotland and Tax Powers Act (Interest on Unpaid Tax and Interest Rates in General) Regulations 2015
Made
Coming into force
The Scottish Ministers make the following Regulations in exercise of the powers conferred by sections 217(2) and 220(1) of the Revenue Scotland and Tax Powers Act 20141 and all other powers enabling them to do so.
In accordance with section 254(3)(m) of that Act, a draft of this instrument has been laid before and approved by resolution of the Scottish Parliament.
PART 1GENERAL
Citation and commencementI11
These Regulations may be cited as the Revenue Scotland and Tax Powers Act (Interest on Unpaid Tax and Interest Rates in General) Regulations 2015 and come into force on 1st April 2015.
InterpretationI22
In these Regulations, “the Act” means the Revenue Scotland and Tax Powers Act 2014.
PART 2Interest on unpaid tax
Interpretation of Part 2I33
In this Part—
“disqualifying event” means—
- a
in relation to the withdrawal of relief under schedule 4 (relief for certain acquisitions of residential property) to the LBTT(S) Act 2013, an event listed in section 33(4)(a) of that Act;
- b
in relation to the withdrawal of relief under schedule 52 (relief for transfer of multiple dwellings) to the LBTT(S) Act 2013, an event listed in section 33(4)(b) of that Act;
- c
in relation to the withdrawal of relief under schedule 8 (relief for alternative finance investment bonds) to the LBTT(S) Act 2013, an event listed in section 33(4)(c) of that Act;
- d
in relation to the withdrawal of group relief, the buyer ceasing to be a member of the same group as the seller in terms of paragraph 14 of schedule 10 to the LBTT(S) Act 2013;
- e
in relation to the withdrawal of relief under schedule 10A3 (sub-sale development relief) to the LBTT(S) Act 2013, an event listed in section 33(4)(da) of that Act;
- f
in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company in terms of paragraph 13 of schedule 11 to the LBTT(S) Act 2013; or
- g
in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraphs 5 and 6 of schedule 13 to the LBTT(S) Act 2013; and
- a
“filing date” means the filing date as defined in section 82 of the Act.
Relevant dateI44
1
The “relevant date” for the purposes of section 217(1) of the Act in respect of the tax or taxes listed in Column 1 of the table below is the date specified in Column 2 corresponding with the taxes listed in Column 1.
Tax to which unpaid tax relates | ‘Relevant date’ | ||
---|---|---|---|
1 | All devolved taxes |
| |
2 | Land and buildings transaction tax |
| |
30 days after the date of the disqualifying event unless there is deferral under section 41 of the LBTT(S) Act 2013, in which case paragraph (b) below applies; | |||
| |||
3 | Scottish landfill tax | In relation to a return made under regulations made under section 25 (accounting for tax and time for payment) of the LT(S) Act 2014, the filing date. |
2
Where a person chargeable to an amount of tax dies before the amount becomes due and payable, and the executor is unable to pay the amount before obtaining confirmation, the relevant date is the later of the date which would be the relevant date apart from this paragraph and the day after the end of the period of 30 days beginning with the grant of confirmation.
PART 3Rates of interest in general
Meaning of “Bank of England rate”I55
1
Subject to paragraph (2), in regulations 6 and 7 “Bank of England rate” for a day means the official bank rate as last announced at a meeting of the Bank of England Monetary Policy Committee held prior to that day.
2
Where a day falls within three working days of a meeting at which an announcement referred to in paragraph (1) was made, the “Bank of England rate” for that day means the rate as determined under that paragraph as if that meeting had not taken place.
3
In paragraph (2), “working day” means any day other than a non-business day (within the meaning of section 92 of the Bills of Exchange Act 18824).
Late payment interest rateI66
The late payment of tax or penalties interest rate for the purposes of section 217 (interest on unpaid tax) and section 218 (interest on penalties) of the Act is the percentage per annum found by applying the following formula—
Repayment interest rateI77
The repayment interest rate for the purposes of section 219 of the Act (interest on repayment of tax overpaid etc.) is the higher of—
a
0.5% per annum; and
b
The Bank of England rate.
(This note is not part of the Regulations)