Following the Bank of England’s announcement on 3 November 2022 that the base rate would rise to 3%, HMRC ‘s interest rates will also increase by 0.75%, to 5.5% for late payment interest and 2% for repayment interest, from 22 November 2022.
The rates track the base rate. The late payment rate is set at 2.5% above the base rate. The repayment rate is set at a ‘minimum floor’ of 0.5% until the base rate reaches 1.5%.
HMRC’s website contains the full picture –
Anyone paying inheritance tax by instalments should immediately review the cost of those arrangements as a matter of urgency.