Section 181 — Income Tax (Earnings and Pensions) Act 2003: The official rate of interest

The official rate of interest 181 1 “ The official rate of interest ” for the purposes of this Chapter means the rate applicable under section 178 of FA 1989 (general power of Treasury to specify rates of interest).

2 Regulations under that section may make different provision in relation to a loan if—

a it was made in the currency of a country or territory outside the United Kingdom, and b the employee normally lives in that country or territory, and has actually lived there at some time in the period of 6 years ending with the tax year in question.

3 Subsection (2) does not affect the general power under section 178(3) of FA 1989 to make different provision for different purposes.