IHTM30352 - Rates of interest: the rates

The statutory rates for charging and repaying supplementary interest since 6 October 1988 can be found on GOV.UK.

Between 16 December 1986 and 28 September 2009 there was a single interest rate for charging and repaying supplementary interest. On 29 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%.

(For reference purposes, the statutory rate from 16 December 1986 to 5 June 1987 was 8%, from 6 June 1987 to 5 August 1988 it was 6% and from 6 August 1988 to 5 October 1988 it was 8%.)