HMRC announces tax changes

An updated set of interest rates for tax payments has been issued by HM Revenue & Customs (HMRC).

Taking effect from January 6th, the alterations are a reflection of market changes, with the rate of interest charged on income tax, national insurance contributions, capital gains tax and stamp duty moving from 8.5 per cent to 7.5 per cent.

Corporation tax rates also see a number of changes, with interest for late payments or repayment for accounting periods ended on or before September 30th 1993 changing from 6.5 per cent to 5.75 per cent.

In addition, the rate of interest on unpaid corporation tax for accounting periods ending on or after July 1st 1999 changes from 8.5 per cent to 7.5 per cent.

The rate of interest on overpaid corporation tax for the same accounting period, in respect of periods after the normal due date, changes from five per cent to four per cent.

HMRC recently issued a reminder of this month's tax return deadline, with all forms needing to be submitted by January 31st.