Following the December 2021 announcement on the previous rate rise, HMRC has increased the current late payment interest rate applied to the main taxes and duties to 3% from 2.75% with effect from 21 February 2022. This is the second rate rise due to consecutive rises in the Bank of England base rate.
The 3% rate applies to late payments for:
- income tax
- National Insurance contributions
- capital gains tax
- stamp duty, SDLT and stamp duty reserve tax.
View further details of the rate rises and which rates are affected.
