Revenue Scotland has confirmed it will adopt the Bank of England’s record low interest rate of 0.25% from 10 August 2016 which will see a cut in the interest charged on late payments
The percentage per annum interest rate for late payment of a penalty is the percentage per annum figure of the Bank of England rate (currently 0.25%) + 2.5%. Therefore, there is a 2.75% interest per annum on any unpaid penalty.
The new rate is effective from 10 August 2016.
The Bank of England’s Monetary Policy Committee (MPC) voted unanimously on 4 August to introduce the record low rate following signs of economic instability after the UK’s vote to leave the European Union (EU).
Both HMRC and Revenue Scotland rates are linked to the Bank of England base rate.
The Bank of England’s package includes a 25 basis point cut in Bank Rate to 0.25%; a new Term Funding Scheme to reinforce the pass-through of the cut in Bank Rate; the purchase of up to £10bn of UK corporate bonds; and an expansion of the asset purchase scheme for UK government bonds of £60bn, taking the total stock of asset purchases to £435bn.
Revenue Scotland became operational in April 2015 and accepts tax returns from Scottish taxpayers for the Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLFT).
Information on Revenue Scotland late penalties is available here
