The Income Tax (Official Rate of Interest on Beneficial Loans) Order 1987

Statutory Instruments

1987 No. 512

INCOME TAX

The Income Tax (Official Rate of Interest on Beneficial Loans) Order 1987

Made

24th March 1987

Laid before the House of Commons

24th March 1987

Coming into force

6th April 1987

The Treasury, in exercise of the powers conferred on them by section 66(9) of the Finance Act 1976(1), hereby make the following Order:

1.  This Order may be cited as the Income Tax (Official Rate of Interest on Beneficial Loans) Order 1987 and shall come into force on 6th April 1987.

2.  For the purposes of section 66 of, and Schedule 8 to, the Finance Act 1976 (which impose a charge to income tax on beneficial loans) the official rate of interest is prescribed to be 11½ per cent. per annum.

Michael Neubert

Peter Lloyd

Two of the Lords Commissioners of Her Majesty’s Treasury

24th March 1987

Explanatory Note

(This note is not part of the Order)

By this Order the official rate of interest for the purposes of section 66 of, and Schedule 8 to, the Finance Act 1976 (charge to income tax on beneficial loans) is prescribed to be 11½ per cent. per annum on and after 6th April 1987.

Previous Orders — S.I. 1978/28, 1980/439 and 1982/1273 — prescribed rates of 9 per cent. per annum (on and after 6th April 1978), 15 per cent. per annum (on and after 6th May 1980) and 12 per cent. per annum (on and after 6th October 1982) respectively.

(1)

1976 c. 40.