Retail price index: January 2011 229.0
Inflation rate: January 2011 5.1%
Indexation factor from March 1982:
to April 1998 1.047
to December 2010 1.875
to January 2011 (not yet announced)
Interest on Overdue Tax
Interest on all unpaid tax is charged at the same rate.
The formula is Bank base rate plus 2.5% which gives a present rate of 3%.
There is one exception: Quarterly instalments of corporation tax bear interest at only 1.5%.
Interest on all overpaid tax is payable at the same rate.
The formula is Bank base rate minus 1% but with an overriding minimum of 0.5% which applies at the present time.
Official Rate of Interest: From 6 April 2010 4%