The Corporation Tax (Instalment Payments) (Amendment) Regulations 2017

Payment dates: very large companies

5.  After regulation 5 (instalment payments – principal provision) insert—

“Instalment payments: very large companies: days for payment

5AZA.— (1) Except in respect of any amount falling within regulation 5AZC or 5A, amounts in respect of the total liability of a very large company for an accounting period are due and payable on the following days.

(2) Where the accounting period is 12 months—

(a) the first instalment is due on the day (“instalment 1 day”) which is 2 months and 13 days after the first day of the accounting period;

(b) the second instalment is due on the day (“instalment 2 day”) which is 3 months later than instalment 1 day;

(c) the third instalment is due on the day (“instalment 3 day”) which is 3 months later than instalment 2 day; and

(d) the final instalment is due on the day (“the final instalment day”) which is 3 months later than instalment 3 day.

(3) Where the accounting period is less than 12 months, steps 1 to 5 apply instead of paragraph (2).

(4) Step 1 is to determine if the accounting period ends—

(a) on the last day of the month, in which case find the day which falls 14 days after the last day of the previous month and apply step 2;

(b) other than on the last day of the month and where there is a day with the same date (“an equivalent day”) in the previous month, in which case find the day which falls 14 days after the corresponding day in the previous month and apply step 2; or

(c) other than on the last day of the month and where there is not an equivalent day in the previous month, in which case find the day which falls 14 days after the last day in the previous month and apply step 2.

(5) Step 2 is to determine if the day found under step 1 falls on or before the first day of the accounting period and—

(a) if it does, an instalment is due on the last day (“the only instalment day”) of the accounting period and no further steps apply; or

(b) if it does not, an instalment is due on the day found under step 1 (“the final instalment day”) and apply step 3.

(6) Step 3 is to determine if the day (“D1”) which falls 2 months and 13 days after the first day of the accounting period falls on or after the final instalment day and—

(a) if it does, the final instalment day becomes the only instalment day and no further steps apply; or

(b) if it does not, an instalment is due on D1 (“instalment 1 day”) and apply step 4.

(7) Step 4 is to determine if the day (“D2”) which falls 3 months later than instalment 1 day falls on or after the final instalment day and—

(a) if it does, no further steps apply; or

(b) if it does not, an instalment is due on D2 (“instalment 2 day”) and apply step 5.

(8) Step 5 is to determine if the day (“D3”) which falls 3 months later than instalment 2 day falls before the final instalment day and only if it does is an instalment due on D3 (“instalment 3 day”).

Instalment payments: very large companies: calculation of payment except bank levy and ring fence profits and adjusted ring fence profits

5AZB.— (1) The amount (“CTI”) which comprises a very large company’s total liability for an accounting period (less any amount falling within regulation 5AZC or 5A) is due and payable on the instalment days set out in this regulation.

(2) Where the only instalment day applies, all of CTI is due and payable on that day.

(3) The amount due and payable on, if applicable—

(a) instalment 1 day, is the lesser of CTI and the formula amount;

(b) instalment 2 day and instalment 3 day, is the lesser of CTI-B and the formula amount; and

(c) the final instalment day, is CTI-B.

(4) In paragraph (3)—

“B” means the amount of CTI required to be paid on each previous instalment day; and

“the formula amount” means the amount produced by—

where—

• “wm” is the number of whole months falling within the accounting period;

• “wmd” is the decimal (calculated to two places rounded arithmetically where necessary) of the fraction R/30, where “R” is the number of days in an accounting period outside the whole months represented by “wm”.

(5) In this regulation the days listed in paragraph (6) have the same meaning in this regulation as they have in paragraph (2) or paragraphs (5) to (8), as the case may be, of regulation 5AZA, and “instalment days” in paragraph (1) means any of those days.

(6) The days referred to in paragraph (5) are—

• “the final instalment day”;

• “instalment 1 day”, “instalment 2 day” and “instalment 3 day”; and

• “the only instalment day”.

Instalment payments: very large companies: bank levy

5AZC.— (1) A very large company’s total liability for an accounting period for bank levy is due and payable as provided by paragraphs (3) to (9) of regulation 5, but with the following modifications of paragraphs (5) and (6) of that regulation.

(2) The modifications referred to in paragraph (1) are—

(a) in the formula in paragraph (5), for “CTI” substitute “BL”;

(b) for the definition of “CTI” in paragraph (5) substitute—

““BL” is the total amount of the company’s liability to bank levy for the accounting period, and”, and

(c) in paragraph (6), for “CTI” substitute “BL”.”.