C2C1C6C9 PART IX INTEREST ON OVERDUE TAX

Annotations:
Modifications etc. (not altering text)
C1

Pt. IX applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by Finance Act 1993 (c. 34), s. 122(2)(3)

C6

Pt. 9 applied by Taxation of Chargeable Gains Act 1992 (c. 12), s. 281(5)(a) (as substituted (with effect in accordance with Sch. 18 para. 17 of the amending Act) by Finance Act 1996 (c. 8), Sch. 18 paras. 15(2), 17)

C9

Pt. 9 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2

C7C4C5C3C887AF1Interest on overdue corporation tax etc.

1

Corporation tax shall carry interest at the F2rate applicable under section 178 of the Finance Act 1989 from the date when the tax becomes due and payable (in accordance with F19section 59D of this Act) until payment.

2

Subsection (1) above applies even if the date when the tax becomes due and payable (as mentioned in that subsection) is a non-business day within the meaning of section 92 of the M1Bills of Exchange Act 1882.

3

In relation to corporation tax assessed F13or treated as assessed by virtue of section F3346(2) or 347(1) of the principal Act, F4137(4), 139(7) F12or 190F18... of the 1992 Act F25... F24paragraph 75A(2) of Schedule 18 to the Finance Act 1998F20, Schedule 28 to the Finance Act 2000 or paragraph 69 of Schedule 29 to the Finance Act 2002 (which enable unpaid corporation tax assessed on a company to be assessed on other persons in certain circumstances), the reference in subsection (1) above to the date when the tax becomes due and payable is a reference to the date when it became due and payable by the company.

F174

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F54A

In a case where—

a

there is for an accounting period of a company (“the later period”) F10a non-trading deficit on the company’s loan relationships,

b

as a result of a claim under F21F11section 389(1) or 459(1)(b) of CTA 2009 the whole or part of the deficit for the later period is set off against profits of an earlier accounting period (“the earlier period”), and

F28c

if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,

F23then, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable F27as mentioned in subsection (8) below.

F154B

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5

A sum assessed on a company by such an assessment as is referred to in F6section 252(5) of the principal Act (recovery of payment of tax credit or interest on such a payment) shall carry interest at the F7rate applicable under section 178 of the Finance Act 1989 from the date when the payment of tax credit or interest was made until the sum assessed is paid.

F86

In any case where—

a

on a claim under section 393A(1) of the principal Act, the whole or any part of a loss incurred in an accounting period (“the later period”) has been set off F16(whether under section 393A(1) or 393B(3)) for the purposes of corporation tax against profits of a preceding accounting period (“the earlier period”);

b

the earlier period does not fall wholly within the period of twelve months immediately preceding the later period; and

c

if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,

then, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable F9as mentioned in subsection (8) below.

F267

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F148

In subsections (4), (4A) and (6) above, any reference to the date on which corporation tax for an accounting period became, or would have become, due and payable shall be construed on the basis that corporation tax for an accounting period becomes due and payable on the day following the expiry of nine months from the end of the accounting period.

F229

The power conferred by section 59E of this Act (alteration of date on which corporation tax becomes due and payable) does not include power to make provision in relation to subsection (4), (4A), (6) or (8) above the effect of which would be to change the meaning of references in subsection (4), (4A) or (6) above to the date on which corporation tax for an accounting period became, or would have become, due and payable (as mentioned in subsection (8) above).