Publication - Correspondence

Local government finance circular 4/2021: non-domestic interest rate 2021-2022

Published: 16 Mar 2021

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.

Published:
16 Mar 2021
Local government finance circular 4/2021: non-domestic interest rate 2021-2022

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