HMRC has increased the late payment interest applied to the main taxes and duties to 7.5%.
These changes will come into effect on 11 July 2023 for Corporation Tax non-quarterly instalment payments, Income Tax, National Insurance contributions, Capital Gains Tax, Stamp Duty Land Tax, Stamp Duty Reserve Tax, Inheritance Tax, Capital Transfer Tax and Estate Duty.
In addition, the interest charged on underpaid quarterly instalment payments will increase to 6.0% with effect from 3 July 2023.
The interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments rises to 4.75% from 3 July 2023.
The repayment interest rate will also increase to 4.0% from 11 July 2023.
These increases have been instigated by the Bank of England base rate increase to 5.0% on 22 June 2023.