Q. When the Bank of England Raised Interest Rates (which it might Do Again!), We Assume HMRC Followed Suit with their Interest Rates on Late Payment of Stamp Duty. Can You Please Advise these Rates and Link us to the Page Where They are Declared on HMRC’s Website?
A: Yes, HMRC are always swift to update their late payment and repayment rates, the reason being is that they are linked to the Bank of England rate (known as the bank rate or base rate). This is currently 5.25%. Search for the guidance ‘ Rates and allowances: HMRC interest rates for late and early payments‘ which is updated when the rates change. The latest version says the following about the two interest rates:
- Late payment interest rate is 7.75% (actually, 5.25% base rate + 2.5%)
- Repayment interest rate is 4.25% (actually, 5.25% base rate less 1%)
You mention Stamp Duty and this is devolved to Scotland and Wales (called Land and Buildings Transaction Tax and Land Transaction Tax). Interestingly, the late payment and repayment interest rates are NOT linked to the Bank of England base rate. Look at the websites for the devolved tax collection agencies, namely Revenue Scotland and the Welsh Revenue Authority.
