(1)This section applies if—
(a)a person (“P”) fails to pay an amount of tax falling within the Table in subsection (5) when it becomes due and payable,
(b)P makes a request to an officer of Revenue and Customs that payment of the amount of tax be deferred, and
(c)an officer of Revenue and Customs agrees that payment of that amount may be deferred for a period (“the deferral period”).
(2)P is not liable to a penalty for failing to pay the amount mentioned in subsection (1) if—
(a)the penalty falls within the Table, and
(b)P would (apart from this subsection) become liable to it between the date on which P makes the request and the end of the deferral period.
(3)But if—
(a)P breaks the agreement (see subsection (4)), and
(b)an officer of Revenue and Customs serves on P a notice specifying any penalty to which P would become liable apart from subsection (2),
P becomes liable, at the date of the notice, to that penalty.
(4)P breaks an agreement if—
(a)P fails to pay the amount of tax in question when the deferral period ends, or
(b)the deferral is subject to P complying with a condition (including a condition that part of the amount be paid during the deferral period) and P fails to comply with it.
(5)The taxes and penalties referred to in subsections (1) and (2) are—
| Tax | Penalty |
|---|---|
| F1. . . | F1. . . |
| Value added tax | Surcharge under section 59(4) or 59A(4) of VATA 1994 [F2or under paragraph 16F of Schedule 3B, or paragraph 26 of Schedule 3BA, to that Act] |
| Aggregates levy | Penalty interest under paragraph 5 of Schedule 5 to FA 2001 |
| Climate change levy | Penalty interest under paragraph 82 of Schedule 6 to FA 2000 |
| Landfill tax | Penalty interest under paragraph 27(2) of Schedule 5 to FA 1996 |
| Insurance premium tax | Penalty under paragraph 15(2) or (3) of Schedule 7 to FA 1994 which is payable by virtue of paragraph 15(1)(a) of that Schedule. |
| Any duty of excise | Penalty under section 9(2) or (3) of FA 1994 which is imposed for a failure to pay an amount of any duty of excise or an amount payable on account of any such duty. |
(6)If the agreement mentioned in subsection (1)(c) is varied at any time by a further agreement between P and an officer of Revenue and Customs, this section applies from that time to the agreement as varied.
(7)The Treasury may by order amend the Table by adding or removing a tax or a penalty.
(8)An order under subsection (7) is to be made by statutory instrument.
(9)A statutory instrument containing an order under subsection (7) is subject to annulment in pursuance of a resolution of the House of Commons.
(10)In this section, except in the entries in the Table, “penalty” includes surcharge and penalty interest.
(11)This section has effect where the agreement mentioned in subsection (1)(c) is made on or after 24 November 2008.
Textual Amendments
F1Words in s. 108(5) omitted (1.4.2011) by virtue of The Finance Act 2009, Schedules 55 and 56 (Income Tax Self Assessment and Pension Schemes) (Appointed Days and Consequential and Savings Provisions) Order 2011 (S.I. 2011/702), arts. 1(1), 15(b) (with arts. 20, 22)
F2Words in s. 108(5) inserted (with effect in accordance with Sch. 22 para. 23 of the amending Act) by Finance Act 2014 (c. 26), Sch. 22 para. 20(3)
Modifications etc. (not altering text)
C1S. 108 applied (with modifications) by S.I. 2005/2045, reg. 48(8) (as inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Income Tax (Construction Industry Scheme) (Amendment) Regulations 2009 (S.I. 2009/2030), regs. 1(2), 2(2))
C2S. 108 applied (with modifications) by S.I. 2003/2682, reg. 203(8) (as inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 (S.I. 2009/2029), regs. 1(2), 4)
C3S. 108 applied (with modifications) by S.I. 2001/1004, reg. 90K(8) (as inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by Social Security (Contributions) (Amendment No.4) Regulations 2009 (S.I. 2009/2028), regs. 1(2), 3)