Citation and commencement

1. These Regulations may be cited as the Alcoholic Products (Repayment Interest Rate) (Alcohol Duty) Regulations 2025 and come into force on 1st September 2025.

Interpretation

2. In these Regulations—

“ alcohol duty ” has the meaning given in section 47 of the Finance (No. 2) Act 2023 (alcohol duty: charge)( 2 );

“ Bank of England rate ” means the official bank rate as announced at the relevant meeting;

“ operative date ” means the 13th working day following the relevant meeting;

“ relevant meeting ” means the most recent meeting of the Monetary Policy Committee of the Bank of England( 3 );

“ repayment interest rate ” means the rate of interest applicable for the purposes of Parts 2 and 3 of Schedule 3 to the Finance Act 2001 (interest payable on repayments etc.)( 4 ) for the purposes of alcohol duty;

“ working day ” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day that is a bank holiday under the Banking and Financial Dealings Act 1971 ( 5 ) in any part of the United Kingdom.

Repayment interest rate

3.—(1) Except where regulation 4 applies, the repayment interest rate is the higher of—

(a)0.5% per annum, and

(b)the percentage per annum found by applying the following formula—

(2) The repayment interest rate found in paragraph (1) applies on and after the operative date.

Initial repayment interest rate

4.—(1) This regulation applies from the coming into force of these Regulations up to and including the day before the first operative date after the coming into force of these Regulations.

(2) The repayment interest rate is to be the percentage per annum found by applying regulation 3(1) as if the reference in that regulation to the Bank of England rate were a reference to the official bank rate announced at the meeting of the Monetary Policy Committee of the Bank of England on, or most recently before, the 13th working day before the coming into force of these Regulations.

Effect of change in repayment interest rate

5. Where the repayment interest rate changes in accordance with these Regulations with effect from an operative date, the change has effect in respect of interest running from before that date as well as interest running from or after that date.