Guidance

Interest rates for late and early payments

Updated 15 August 2016

HM Revenue and Customs (HMRC) late payment and repayment interest rates

The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are:

  • late payment interest rate - 2.75% from 23 August 2016
  • repayment interest rate - 0.5% from 29 September 2009

HMRC interest rates are shown in the tables below.

Income Tax, National Insurance contributions, Capital Gain Tax, Stamp Duty Land Tax, Stamp Duty and Stamp Duty Reserve Tax (from 1 October 1999)

From Late payment % Repayment %
23 August 2016 2.75 0.50
29 September 2009 3.00 0.50
24 March 2009 2.50 0
27 January 2009 3.50 0
6 January 2009 4.50 0.75
6 December 2008 5.50 1.50
6 November 2008 6.50 2.25
6 January 2008 7.50 3.00
6 August 2007 8.50 4.00
6 September 2006 7.50 3.00
6 September 2005 6.50 2.25
6 September 2004 7.50 3.00
6 December 2003 6.50 2.25
6 August 2003 5.50 1.50
6 November 2001 6.50 2.25
6 May 2001 7.50 3.00
6 February 2000 8.50 4.00

Corporation Tax Pay and File

From Late payment % Repayment %
23 August 2016 2.75 0.50
29 September 2009 3.00 0.50
24 March 2009 1.75 0
27 January 2009 2.75 0
6 January 2009 3.50 0.50
6 December 2008 4.25 1.25
6 November 2008 5.00 2.00
6 January 2008 6.00 2.75
6 August 2007 6.75 3.50
6 September 2006 6.00 2.75
6 September 2005 5.25 2.00
6 September 2004 6.00 2.75
6 December 2003 5.25 2.00
6 August 2003 4.25 1.25
6 November 2001 5.00 2.00
6 May 2001 6.00 2.75
6 February 2000 6.75 3.50

Corporation Tax Pre-Pay and File Stamp Duty Reserve Tax (to 30 September 1999) and Petroleum Revenue Tax - Reg 3AA

From Late payment % Repayment %
23 August 2016 2.75 0.50
29 September 2009 3.00 0.50
24 March 2009 2.00 2.00
27 January 2009 2.75 2.75
6 January 2009 3.50 3.50
6 December 2008 4.25 4.25
6 November 2008 5.00 5.00
6 January 2008 5.75 5.75
6 August 2007 6.50 6.50
6 September 2006 5.75 5.75
6 September 2005 5.00 5.00
6 September 2004 5.75 5.75
6 December 2003 5.00 5.00
6 August 2003 4.25 4.25
6 November 2001 5.00 5.00
6 May 2001 5.75 5.75
6 February 2000 6.50 6.50

Corporation Tax Self Assessment, from normal due date

From Late payment % Repayment %
23 August 2016 2.75 0.50
29 September 2009 3.00 0.50
24 March 2009 2.50 0
27 January 2009 3.50 0
6 January 2009 4.50 1.00
6 December 2008 5.50 2.00
6 November 2008 6.50 3.00
6 January 2008 7.50 4.00
6 August 2007 8.50 5.00
6 September 2006 7.50 4.00
6 September 2005 6.50 3.00
6 September 2004 7.50 4.00
6 December 2003 6.50 3.00
6 August 2003 5.50 2.00
6 November 2001 6.50 3.00
6 May 2001 7.50 4.00
6 February 2000 8.50 5.00

Inheritance Tax, Capital Transfer Tax and Estate Duty - Reg 4A

From Late payment % Repayment %
23 August 2016 2.75 0.50
29 September 2009 3.00 0.50
24 March 2009 0 0
27 January 2009 1.00 1.00
6 January 2009 2.00 2.00
6 December 2008 3.00 3.00
6 November 2008 3.00 3.00
6 January 2008 4.00 4.00
6 August 2007 5.00 5.00
6 September 2006 4.00 4.00
6 September 2005 3.00 3.00
6 September 2004 4.00 4.00
6 December 2003 3.00 3.00
6 August 2003 2.00 2.00
6 November 2001 3.00 3.00
6 May 2001 4.00 4.00
6 February 2000 5.00 5.00

IT-CP and other duties attracting section 87 interest for accounting periods ending on or after 1 July 1999

From Late payment %
23 August 2016 2.75
29 September 2009 3.00
24 March 2009 2.50
27 January 2009 3.50
6 January 2009 4.50
6 December 2008 5.50
6 November 2008 6.50
6 January 2008 7.50
6 August 2007 8.50
6 September 2006 7.50
6 September 2005 6.50
6 September 2004 7.50
6 December 2003 6.50
6 August 2003 5.50
6 November 2001 6.50
6 May 2001 7.50
6 February 2000 8.50

Departmental interest rates

Default and statutory interest

Interest rates relating to VAT, Air Passenger Duty, Insurance Premium Tax, environmental taxes and Customs Duty.

Start date Default interest rate applicable % Statutory interest rate applicable %
23 August 2016 2.75 0.50
29 September 2009 3.00 0.50
24 March 2009 2.50 0
27 January 2009 3.50 0
6 January 2009 4.50 1.00
6 December 2008 5.50 2.00
6 November 2008 6.50 3.00
6 January 2008 7.50 4.00
6 August 2007 8.50 5.00
6 September 2006 7.50 4.00
6 September 2005 6.50 3.00
6 September 2004 7.50 4.00
6 December 2003 6.50 3.00
6 August 2003 5.50 2.00
6 November 2001 6.50 3.00
6 May 2001 7.50 4.00
6 February 2000 8.50 5.00
6 March 1999 7.50 4.00
6 January 1999 8.50 5.00
6 July 1998 9.50 6.00

Other Corporation Tax Self Assessment interest rates

Interest charged on underpaid quarterly instalment payments

From Percentage %
15 August 2016 1.25
16 March 2009 1.50
16 February 2009 2.00
19 January 2009 2.50
15 December 2008 3.00
17 November 2008 4.00
20 October 2008 5.50
21 April 2008 6.00
18 February 2008 6.25
17 December 2007 6.50
16 July 2007 6.75
21 May 2007 6.50
22 January 2007 6.25
20 November 2006 6.00
14 August 2006 5.75
15 August 2005 5.50
16 Aug 2004 5.75
21 June 2004 5.50
17 May 2004 5.25
16 February 2004 5.00
17 November 2003 4.75
21 July 2003 4.50
17 February 2003 4.75
19 November 2001 5.00
15 October 2001 5.50
1 October 2001 5.75
13 August 2001 6.00
21 May 2001 6.25
16 April 2001 6.50
19 March 2001 6.75
19 February 2001 6.75
20 April 2000 7.00
21 February 2000 8.00
24 January 2000 7.75
15 November 1999 7.50
20 September 1999 7.25
21 June 1999 7.00
19 April 1999 7.25
15 February 1999 7.50
18 January 1999 8.00
1 January 1999 8.25

Interest paid on overpaid quarterly instalment payments and on early payments of Corporation Tax not due by instalments

From Percentage %
15 August 2016 0.50
21 Sep 2009 0.50
16 March 2009 0.25
16 February 2009 0.75
19 January 2009 1.25
15 December 2008 1.75
17 November 2008 2.75
20 October 2008 4.25
21 April 2008 4.75
18 February 2008 5.00
17 December 2007 5.25
16 July 2007 5.50
21 May 2007 5.25
22 January 2007 5.00
20 November 2006 4.75
14 August 2006 4.50
15 August 2005 4.25
16 August 2004 4.50
21 June 2004 4.25
17 May 2004 4.00
16 February 2004 3.75
17 November 2003 3.50
21 July 2003 3.25
17 February 2003 3.50
19 November 2001 3.75
15 October 2001 4.25
1 October 2001 4.50
13 August 2001 4.75
21 May 2001 5.00
16 April 2001 5.25
19 March 2001 5.50
19 February 2001 5.50
21 February 2000 5.75
24 January 2000 5.50
15 November 1999 5.25
20 September 1999 5.00
21 June 1999 4.75
19 April 1999 5.00
15 February 1999 5.25
18 January 1999 5.75
1 January 1999 6.00

Interest charged on judgement debt taxation matters*

From Percentage %
23 August 2016 2.75
8 July 2015 3.00
Before 8 July 2015 8.00

*Please note that changes to judgement debt interest rates will not take effect in Scotland and Northern Ireland and apply to National Insurance debts until Royal Assent of Finance Act 2016.