Bank of England rate rise prompts HMRC interest increase HMRC, which can add interest onto late payments for various taxes including income tax, CGT and IHT, has confirmed it will increase rates after the Bank of England elected to raise interest rates to 0.25% from 0.1% in response to rising inflation and economic uncertainty. HMRC said: "As a consequence of the change in the base rate, HMRC interest rates for late payments will increase”, adding: “These changes will come into effect on December 27, 2021 for quarterly instalment payments and January 4, 2022 for non-quarterly instalments payments. Repayment interest rates remain unchanged."