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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Rates of interest: the rates

The statutory rates for charging and repaying supplementary interest since 16 December 1986 are:

### Dates ### Rate
   
16 Dec 1986 to 5 Jun 1987 8%
6 Jun 1987 to 5 Aug 1988 6%
6 Aug 1988 to 5 Oct 1988 8%
6 Oct 1988 to 5 Jul 1989 9%
6 Jul 1989 to 5 Mar 1991 11%
6 Mar 1991 to 5 May 1991 10%
6 May 1991 to 5 Jul 1991 9%
6 Jul 1991 to 5 Nov 1992 8%
6 Nov 1992 to 5 Dec 1992 6%
6 Dec 1992 to 5 Jan 1994 5%
6 Jan 1994 to 5 Oct 1994 4%
6 Oct 1994 to 5 Mar 1999 5%
6 Mar 1999 to 5 Feb 2000 4%
6 Feb 2000 to 5 May 2001 5%
6 May 2001 to 5 Nov 2001 4%
6 Nov 2001 to 5 Aug 2003 3%
6 Aug 2003 to 5 Dec 2003 2%
6 Dec 2003 to 5 Sep 2004 3%
6 Sep 2004 to 5 Sep 2005 4%
6 Sep 2005 to 5 Sep 2006 3%
6 Sep 2006 to 5 Aug 2007 4%
6 Aug 2007 to 5 Jan 2008 5%
6 Jan 2008 to 5 Nov 2008 4%
6 Nov 2008 to 5 Jan 2009 3%
6 Jan 2009 to 26 Jan 2009 2%
27 Jan 2009 to 23 Mar 2009 1%
24 Mar 2009 to 28 Sep 2009 0%

On 29t h September 2009 the rates for charging interest and repaying supplementary interest on Inheritance Tax were brought into line with the rest of HMRC. From this day onwards they follow the Bank of England base rate.

Interest is charged on any overdue tax at the current Bank of England base rate plus 2.5%.

Supplementary interest due on any tax and interest that has been overpaid will be paid at Bank of England base rate minus 1%, although this will be subject to a minimum rate of 0.5%.

The rates for charging interest and repaying supplementary interest from 29t h September 2009 onwards can be found at http://www.hmrc.gov.uk/rates/iht-interest-rates.htm.