Revenue Scotland amends interest rates in line with Bank of England announcement
Released 8 August 2018
Revenue Scotland has increased interest rates for late paid tax and penalties and for repayments in line with the Bank of England base rate increase.
On 2 August 2018, the Bank of England announced a 0.25% increase in the base interest rate to 0.75%. Revenue Scotland has amended its rates accordingly, with effect from 8 August 2018.
Interest on late payment of tax is charged at the Bank of England base rate (currently 0.75%) plus 2.5%. The new rate is, therefore, 3.25% per annum interest on any amount of unpaid tax. The same rate of interest is charged for late payment of a penalty.
The percentage interest rate applied to repayments of tax, penalties or interest is the higher of:
0.5% per annum; and
the Bank of England rate (currently 0.75%).
The new rate is, therefore, 0.75% interest per annum to any repayment of tax, penalties or interest.
For more information, see Revenue Scotland amends interest rates in line with Bank of England announcement.