C2C1C4C6C10 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)

C4

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)

C6

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

C10

Pt. 9 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 11(3)

C3C5C7C8C987AF1Interest 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 F7section 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 F20or treated as assessed by virtue of section F3346(2) or 347(1) of the principal Act, F4137(4), 139(7) F21or 190F23... of the 1992 Act F22... F19paragraph 75A(2) of Schedule 18 to the Finance Act 1998F24, F26... paragraph 69 of Schedule 29 to the Finance Act 2002F27or 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.

F124

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 F11F25section 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

F8c

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,

F9then, 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 F15as mentioned in subsection (8) below.

F134B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F305

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F66

In any case where—

a

on a claim under F28section 37 of CTA 2010, the whole or any part of a loss incurred in an accounting period (“the later period”) has been F29relieved (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 F18as mentioned in subsection (8) below.

F147

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F168

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.

F179

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).