[F187AInterest on overdue corporation tax etc.U.K.
(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 [F3section 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 [F4or treated as assessed] by virtue of section [F5346(2) or 347(1) of the principal Act, [F6137(4), 139(7) [F7or 190] F8... of the 1992 Act F9... [F10paragraph 75A(2) of Schedule 18 to the Finance Act 1998]]][F11, F12... paragraph 69 of Schedule 29 to the Finance Act 2002] [F13or Chapter 7 of Part 22 of CTA 2010] (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.
F14(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F15(4A)In a case where—
(a)there is for an accounting period of a company (“the later period”) [F16a non-trading deficit on the company’s loan relationships,]
(b)as a result of a claim under [F17[F18section 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
[F19(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,]
[F20then, 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 [F21as mentioned in subsection (8) below].]]
F22(4B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F23(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F24[(6)In any case where—
(a)on a claim under [F25section 37 of CTA 2010], the whole or any part of a loss incurred in an accounting period (“the later period”) has been [F26relieved (whether under that section or section 42 of that Act)] 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 [F27as mentioned in subsection (8) below].
F28(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
[F29(8)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.]
[F30(9)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).]]
Textual Amendments
F1S. 87A inserted by Finance (No. 2) Act 1987 (c. 51), ss. 85, 95(2)
F2Words in s. 87A substituted by Finance Act 1989 (c. 26), s. 179(1)(b); S.I. 1989/1298.
F3Words in s. 87A(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 24; S.I. 1998/3173, art. 2
F4Words in s. 87A(3) inserted (with effect in accordance with s. 98(2), Sch. 29 para. 9(3)) of the amending Act) by Finance Act 2000 (c. 17), Sch. 28 para. 3(4)(a), Sch. 29 para. 9(2)(a) (with Sch. 29 para. 46(5))
F6Words in s. 87A(3) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(9) (with ss. 60, 101(1), 171, 201(3))
F7Words in s. 87A(3) inserted (with effect in accordance with Sch. 29 para. 9(3) of the amending Act) by Finance Act 2000 (c. 17), Sch. 29 para. 9(2)(b) (with Sch. 29 para. 46(5))
F8Words in s. 87A(3) repealed (with effect in accordance with Sch. 29 para. 4(7) of the amending Act) by Finance Act 2000 (c. 17), Sch. 40 Pt. 2(12)
F9Word in s. 87A(3) repealed (with effect in accordance with s. 98(2) of the amending Act) by Finance Act 2000 (c. 17), Sch. 40 Pt. 2(11)
F10Words in s. 87A(3) substituted (with effect in accordance with s. 92(7) of the amending Act) by Finance Act 1999 (c. 16), s. 92(5)
F11Words in s. 87A(3) substituted (with effect in accordance with s. 84(1) of the amending Act) by Finance Act 2002 (c. 23), Sch. 29 para. 69(4)
F12Words in s. 87A(3) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 156(2)(a), Sch. 3 Pt. 1 (with Sch. 2)
F13Words in s. 87A(3) inserted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 156(2)(b) (with Sch. 2)
F14S. 87A(4) repealed (with effect in accordance with Sch. 3 para. 4(4) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 4(2), Sch. 27 Pt. 3(2)
F15S. 87A(4A) inserted (27.7.1993) by 1993 c. 34, s. 170, Sch. 18 para.1
F16Words in s. 87A(4A)(a) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 1(1)(a) (with Sch. 15)
F17Words in s. 87A(4A)(b) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 1(1)(b) (with Sch. 15)
F18Words in s. 87A(4A)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 305 (with Sch. 2 Pts. 1, 2)
F19S. 87A(4A)(c) substituted (23.3.1995) by Finance Act 1995 (c. 4), Sch. 24 paras. 7, 8(a); S.I. 1994/3224, art. 2
F20Words in s. 87A(4A) substituted (23.3.1995) by Finance Act 1995 (c. 4), Sch. 24 paras. 7, 8(b); S.I. 1994/3224, art. 2
F21Words in s. 87A(4A) substituted (with effect in accordance with Sch. 4 para. 4(5)(6) of the amending Act) by Finance Act 1998 (c. 36), Sch. 4 para. 4(2); S.I. 1998/3173, art. 2
F22S. 87A(4B) repealed (with effect in accordance with Sch. 3 para. 4(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 4(3), Sch. 27 Pt. 3(2)
F23S. 87A(5) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 51(10)
F24S. 87A(6)(7) substituted (27.7.1993) for s. 87A(6) by 1993 c. 34, s. 120, Sch. 14 para. 4(2)
F25Words in s. 87A(6)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 156(4)(a) (with Sch. 2)
F26Words in s. 87A(6)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 156(4)(b) (with Sch. 2)
F27Words in s. 87A(6) substituted (with effect in accordance with Sch. 4 para. 4(5)(6) of the amending Act) by Finance Act 1998 (c. 36), Sch. 4 para. 4(2); S.I. 1998/3173, art. 2
F28S. 87A(7) repealed (with effect in accordance with Sch. 3 para. 4(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 4(3), Sch. 27 Pt. 3(2)
F29S. 87A(8) inserted (with effect in accordance with Sch. 4 para. 4(5)(6) of the amending Act) by Finance Act 1998 (c. 36), Sch. 4 para. 4(3); S.I. 1998/3173, art. 2
F30S. 87A(9) inserted (with effect in accordance with Sch. 4 para. 4(5)(6) of the amending Act) by Finance Act 1998 (c. 36), Sch. 4 para. 4(4); S.I. 1998/3173, art. 2
Modifications etc. (not altering text)
C1S. 87A modified (3.5.1994) by Finance Act 1994 (c. 9), s. 250(4)(5)
C2S. 87A applied (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 52(6) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
C3S. 87A modified (with effect in accordance with s. 63(4) of the amending Act) by Finance Act 2000 (c. 17), Sch. 15 para. 63(2)
C4S. 87A applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 716, 1184(1) (with Sch. 2)
C5S. 87A applied (with modifications) (with effect in accordance with reg. 1(2) of the affecting S.I.) by The Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175), regs. 1(1), 7 (as amended by S.I. 2011/1785, regs. 1(1)(2), 10; and (1.4.2019) by S.I. 2017/1072, regs. 1(1), 9 (with reg. 1(2)))
Marginal Citations