Local government finance circular 3/2022: non-domestic interest rate 2022-23

Local Government Finance Circular No. 3/2022

Chief Executives, Scottish Local Authorities
Copy to: Directors of Finance

Dear Sir/Madam,

The Non–Domestic Rating (Payment of Interest) (Scotland) Regulations 1992 and Amendment Regulations 2009: interest rate for 2022-23

I am directed by the Scottish Ministers to draw your attention to the interest rate to be applied for 2022-23 in calculating the interest due when repaying rates overpaid in error or following alterations to the valuation roll. 

The appropriate rate is set by regulation 4(2)(e) of the above Regulations at 1% below the base rate set by the Bank of England. The relevant base lending rate on 15 March 2022 was 0.50%. As such the interest rate to be applied from 1 April 2022 to 31 March 2023 will be 0%. 

The rates of interest on overpayments in respect of previous years remain at: 

0% for 2021-22                  0% for 2020-21                            0% for 2019-20  

0% for 2018-19                  0% for 2017-18                            0% for 2016-17            

0% for 2015-16                  0% for 2014-15                            0% for 2013-14             

0% for 2012-13                  0% for 2011-12                            0% for 2010-11             

0% for 2009-10                  4.25% for 2008-09                       4.25% for 2007-08

3.5% for 2006-07               3.75% for 2005-06                       3% for 2004-05  

This circular has been published on gov.scot. Any enquiries on it should be addressed to me. 

Yours faithfully, 

Anouk Berthier
Local Government and Analytical Services Division