Discounted Gift Schemes

Interest Rate Change from 1 February 2009

The valuation rate of interest (the discount rate) was reduced from 6.75 per cent pa to 5.25 per cent pa with effect from 1 February 2009. This change was announced in a Revenue & Customs Brief of December 2008.

If you have any questions relating to this matter please refer them to:

Phil Oxlade
Board’s Actuarial Officer
Charity Assets & Residence
Actuarial Group
Ferrers House
PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB
Phone: 0115 974 2950

or

Nigel Cobb
Assistant Actuarial Officer
Charity Assets & Residence
Actuarial Group
Ferrers House
PO Box 38
Castle Meadow Road
Nottingham
NG2 1BB
Phone: 0115 974 2939

Interest Rate Change from 1 September 2007

In the Technical Note (PDF 45K) issued on 2 May 2007 we advised that the valuation basis used by HMRC would be kept under review and that any future changes to the valuation basis would be published on the HMRC website. The purpose of this announcement is to give details of a change to the valuation rate of interest to be used from 1 September 2007.

Since the publication of the Technical Note in May 2007 both the Bank of England Base Rate and yields on Gilts have continued to rise. In the light of these increases, HMRC proposes to increase the valuation rate of interest used in connection with valuing the retained rights under discounted gift schemes to 6.75 per cent from 1 September 2007. This returns the differential over short term Gilts to 1 per cent as at 13 July 2007.