2/8/18 2nd August 2018 – The Bank of England raised interest rates today for only the second time in a decade. Does this mean that interest will be paid on business rates refunds? – No, I’m afraid not.
The Monetary Policy Committee (MPC) increased the base rate today from 0.50% to 0.75%.
The change to the Bank rate will affect millions of savings accounts, loans, and mortgages, but unfortunately it will not result in interest being paid on Business Rates refunds.
The Payment of Interest Regulations 1990 do allow for interest to be paid on refunds resulting from a successful rating (business rates) appeal, but the interest rate to be used for the relevant year, is one percentage point less than the base rate effective at the close of business on the 15th March of the preceding year. Therefore, if this interest rate is still in place in March, it is still not high enough to affect business rates refunds.
The interest rate for business rates refunds went from 4.25% to zero in 2009 and has stayed at zero ever since.