1. These Regulations may be cited as the Taxes (Interest Rate) (Amendment No. 2) Regulations 1993 and shall come into force on 6th April 1993.

2. In paragraph (1) of regulation 3 of the Taxes (Interest Rate) Regulations 1989(2)-

(a)the word "and" immediately following sub-paragraph (f) shall be omitted;

(b)after sub-paragraph (g) there shall be inserted-

• "and

  (h)

  paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits Act 1992(3),".

Explanatory Note

(This note is not part of the Regulations)

These Regulations, made under powers contained in section 178 of the Finance Act 1989, make provision for the rate of interest applicable for the purposes of paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits Act 1992 for periods beginning on or after 6th April 1993.

Subsection (1) of section 178 of the 1989 Act provides that the rate of interest applicable for the purposes of the enactments to which that section applies is to be the rate provided for by regulations made by the Treasury under that section. The Regulations so made are the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297) ("the 1989 Regulations"). Regulation 3 of the 1989 Regulations specifies the interest rate applicable under section 178 in relation to various enactments which apply to unpaid income tax, surtax, capital gains tax, corporation tax (including advance corporation tax), petroleum revenue tax and development land tax, and repayments of petroleum revenue tax, overpaid development land tax and stamp duty reserve tax and repayment supplement. It also makes provision for changes in the applicable interest rate and for the formula to be used in calculating the new rate.

These Regulations provide for paragraph 6 of Schedule 1 to the 1992 Act to be added to the enactments to which regulation 3 of the 1989 Regulations applies.

Paragraph 6 of Schedule 1 to the 1992 Act provides for the Secretary of State to make Regulations with the concurrence of the Inland Revenue providing for Class 1, Class 1A or Class 2 contributions to be paid, accounted for and recovered in the same manner as income tax deducted under the PAYE scheme. The paragraph also provides that the Regulations may make provision for the payment of interest on sums due in respect of unpaid Class 1 or Class 1A contributions.