The Stamp Duty Reserve Tax (Interest on Tax Repaid) Order 1989

Made: 12th June 1989

Laid before the House of Commons: 15th June 1989

Coming into force: 6th July 1989

The Treasury, in exercise of the powers conferred on them by section 92(4) of the Finance Act 1986[^f00001], hereby make the following Order:

1

This Order may be cited as the Stamp Duty Reserve Tax (Interest on Tax Repaid) Order 1989 and shall come into force on 6th July 1989.

2

The rate specified, which for the purposes of section 92 of the Finance Act 1986[^f00002] is the appropriate rate, is 12.25 per cent. per annum.

Signed

David Lightbown — Kenneth Carlisle — Two of the Lords Commissioners of Her Majesty’s Treasury — 12th June 1989

Explanatory note

(This note is not part of the Order)

Section 92 of the Finance Act 1986 provides that, if certain conditions have been fulfilled and a claim for repayment is made within the stipulated period, stamp duty reserve tax shall be repaid. Where the tax paid is not less than £25, it shall be repaid with interest at the appropriate rate. The section defines the “appropriate rate” as 11 per cent. per annum or such other rate as the Treasury may from time to time specify by order.

This order specifies that on and after 6th July 1989 the appropriate rate shall be 12.25 per cent. per annum. Prior to that date the rate was 9 per cent. on and after 6th April 1987 (S.I. 1987/514), 8.25 per cent. on and after 6th June 1987 (S.I. 1987/888), 9 per cent. on and after 6th September 1987 (S.I. 1987/1494), 8.25 per cent. on and after 6th December 1987 (S.I. 1987/1990), 7.75 per cent. on and after 6th May 1988 (S.I. 1988/758), 9.75 per cent. on and after 6th August 1988 (S.I. 1988/1281), 10.75 per cent. on and after 6th October 1988 (S.I. 1988/1624) and 11.5 per cent. on and after 6th January 1989 (S.I. 1988/2187).

Footnotes

[^f00001]: 1986 c. 41.

[^f00002]: Section 92(4A) was added by paragraph 7 of Schedule 7 to the Finance Act 1987 (c. 16).