(This note is not part of the Order)
These Regulations amend regulation 5 of the Taxes (Interest Rate) Regulations 1989 (S. I.1989/1297). That regulation provides for the official rate of interest for the purposes of section 160 of the Income and Corporation Taxes Act 1988 (taxation of beneficial loans made to employees) by first specifying an official rate of interest for beneficial loans generally and then specifying, by way of exception, different official rates of interest for certain beneficial loans in specified foreign currencies.
The amendment made by these Regulations specifies, with effect from 6th July 1994, an official rate of interest of 5.5 per cent. per annum for certain beneficial loans made in the currency of Switzerland, in substitution for the rate of 5.7 per cent. per annum specified by S. I. 1994/1307.