Local government finance circular 4/2021: non-domestic interest rate 2021-2022
This letter sets out the interest rate to be applied by local authorities for 2021-2022 in calculating the interest due when repaying rates overpaid in error or following alterations to the valuation roll.
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Dear Sir/Madam
The Non-Domestic Rating (Payment of Interest) (Scotland) Regulations 1992 and Amendment Regulations 2009: Interest Rate for 2021-22
I am directed by the Scottish Ministers to draw your attention to the interest rate to be applied for 2021-22 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 2021 was 0.1%. As such the interest rate to be applied from 1 April 2021 to 31 March 2022 will be 0%.
The rates of interest on overpayments in respect of previous years remain at:
| 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 | 2.75% for 2003-04 |
This Circular has been published on the Scottish Government’s website. Any enquiries on it should be addressed to me.
Yours faithfully,
Ian Storrie
Local Government and Analytical Services Division
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