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Taxes Management Act 1970

Type Public General Act

Publication 1970-03-12

Last updated 2026-04-25

State In force

Department Statute Law Database

Source legislation.gov.uk

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(8) In this section, in relation to a year of assessment, any reference to the amount of any income tax deducted at source is a reference to the amount by which the aggregate of the following, namely—

(a) any income tax deducted or treated as deducted from any income, or treated as paid on any income, in respect of the year, and

(b) any amounts which, in respect of the year, are to be deducted at source under PAYE regulations in subsequent years, ...

exceeds the aggregate of any amounts which, in the year, are deducted at source under PAYE regulations in respect of previous years.

(9) If, at any time before the 31st January next following a year of assessment, an officer of the Board so directs—

(a) this section shall not apply, and shall be deemed never to have applied, as regards that year to any person specified in the direction; and

(b) there shall be made all such adjustments, whether by the repayment of amounts paid on account or otherwise, as may be required to give effect to the direction.

(10) PAYE regulations may provide that, for the purpose of determining the amount of any such excess as is mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under PAYE regulations.

Payments on account of capital gains tax: disposals of land etc

59AZA

For provision requiring payments to be made on account of capital gains tax, see Schedule 2 to the Finance Act 2019.

Non-resident CGT disposals: payments on account of capital gains tax

59AA

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Amounts payable on account: recovery

59AB

The provisions of the Taxes Acts as to the recovery of tax shall apply to an amount falling to be paid on account of tax in the same manner as they apply to an amount of tax.

Payment of income tax and capital gains tax: assessments other than simple assessments.

59B

(1) Subject to subsection (2) below, the difference between—

(a) the amount of income tax and capital gains tax contained in a person’s self-assessment under section 9 of this Act for any year of assessment, and

(b) the aggregate of any payments on account made by him in respect of that year (whether under section 59A of this Act or under Schedule 2 to the Finance Act 2019 or otherwise) and any income tax which in respect of that year has been deducted at source,

shall be payable by him or (as the case may be) repayable to him as mentioned in subsection (3) or (4) below but nothing in this subsection shall require the repayment of any income tax treated as deducted or paid by virtue of section ... 246D(1) ... of the principal Act, section 626 of ITEPA 2003 ... ... or 530(1) of ITTOIA 2005.

(2) The following, namely—

(a) any amount which, in the year of assessment, is deducted at source under PAYE regulations in respect of a previous year, and

(b) any amount which, in respect of the year of assessment, is to be deducted at source under PAYE regulations in a subsequent year, ...

shall be respectively deducted from and added to the aggregate mentioned in subsection (1)(b) above.

(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In a case where the person—

(a) gave the notice required by section 7 of this Act within six months from the end of the year of assessment, but

(b) was not given notice under section 8 or 8A of this Act until after the 31st October next following that year,

the difference shall be payable or repayable at the end of the period of three months beginning with the day on which the notice under section 8 or 8A was given.

(4) In any other case, the difference shall be payable or repayable on or before the 31st January next following the year of assessment.

(4ZA) In a case in which the notice required by section 7 was given following the receipt of a notice under section 8B, subsections (3) and (4) apply as if—

(a) the reference to the notice required by section 7 were a reference to the original notice required by that section, and

(b) the references to notice under section 8 or 8A were references to the original notice under that section.

(4ZB) In subsection (4ZA) the references to original notices are to notices given before the notice under section 8B.

(4A) Where in the case of a repayment the return on the basis of which the person’s self-assessment was made under section 9 of this Act is enquired into by an officer of the Board—

(a) nothing in subsection (3) or (4) above shall require the repayment to be made before the day on which, by virtue of section 28A(1B) of this Act, the enquiry is completed; but

(b) the officer may at any time before that day make the repayment, on a provisional basis, to such extent as he thinks fit.

(5) An amount of tax which is payable or repayable as a result of the amendment or correction of a self-assessment under—

(a) section 9ZA, 9ZB, 9C or 28A of this Act (amendment or correction of return under section 8 or 8A of this Act), or

(b) section 12ABZB(8), 12ABA(3)(a), 12ABB(6)(a), 28B(4)(a), 30B(2)(a), 33A(4)(a) or 50(9)(a) of this Act (amendment of partner’s return to give effect to amendment or correction of partnership return),

is payable (or repayable) on or before the day specified by the relevant provision of Schedule 3ZA to this Act.

(5A) Where a determination under section 28C of this Act which has effect as a person’s self-assessment is superseded by his self-assessment under section 9 of this Act, any amount of tax which is payable or repayable by virtue of the supersession shall be payable or (as the case may be) repayable on or before the day given by subsection (3) or (4) above.

(6) Any amount of income tax or capital gains tax which is payable by virtue of an assessment made otherwise than under section 9, 28H or 28I of this Act shall, unless otherwise provided, be payable on the day following the end of the period of 30 days beginning with the day on which the notice of assessment is given.

(7) In this section any reference to income tax deducted at source is a reference to income tax deducted or treated as deducted from any income or treated as paid on any income.

But such a reference does not include income tax repaid on a claim for repayment of income tax which—

(a) is treated as having been paid by virtue of section 520(4) of ITA 2007 (gift aid relief: income tax treated as paid by trustees of charitable trust), or

(b) has been deducted at source from income to which section 532, 533, 536 or 537 of that Act (certain sources of income exempt from income tax) applies.

(8) PAYE regulations may provide that, for the purpose of determining the amount of the difference mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under PAYE regulations.

Payment of income tax and capital gains tax: simple assessments

59BA

(1) This section applies where a person has been given a simple assessment in relation to a year of assessment.

(2) Subject to subsection (3), the difference between—

(a) the amount of income tax and capital gains tax for that year contained in the simple assessment, and

(b) the aggregate of any payments on account made by the person in respect of that year (whether under section 59A of this Act or under Schedule 2 to the Finance Act 2019 or otherwise) and any income tax which in respect of that year has been deducted at source,

is payable by that person as mentioned in subsection (4) or (5).

(3) Nothing in subsection (2) is to be read as requiring the repayment of any income tax which any provision of the Income Tax Acts provides is not repayable.

(4) In a case where the person is given notice of the simple assessment after the 31st October next after the year of assessment, the difference is payable at the end of the period of 3 months after the day on which that notice was given.

(5) In any other case the difference is payable on or before the 31st January next after the end of the year of assessment.

(6) Section 59B(7) (which explains references to income tax deducted at source) applies for the purposes of this section.

(7) PAYE regulations may provide that, for the purpose of determining the amount of the difference mentioned in subsection (2), any necessary adjustments in respect of matters prescribed in the regulations shall be made to the amount of tax deducted at source under PAYE regulations.

CGT exit charge payment plans

59BB

Schedule 3ZAA contains provision for the payment in instalments of capital gains tax to which liability arises by virtue of section 25 or 80 of the 1992 Act.

Surcharges on unpaid income tax and capital gains tax.

59C

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Corporation tax

General rule as to when corporation tax is due and payable.

59D

(1) Corporation tax for an accounting period is due and payable on the day following the expiry of nine months from the end of that period.

(2) If the tax payable is then exceeded by the total of any relevant amounts previously paid (as stated in the relevant company tax return), the excess shall be repaid.

(3) The tax payable means the amount computed in accordance with the first to fourth steps of paragraph 8 of Schedule 18 to the Finance Act 1998.

(4) Relevant amounts previously paid means any of the following, so far as relating to the accounting period in question—

(a) any amount of corporation tax paid by the company and not repaid;

(b) any corporation tax refund surrendered to the company by another group company;

(c) any amount by which the sums available for set off under Step 4 of the calculation in paragraph 8 of Schedule 18 to the Finance Act 1998 (amounts set off against overall tax liability) exceeds the amount against which they may be set off under that provision;

(d) any amount treated as corporation tax paid in respect of profits of the company by virtue of regulations under section 62 of the Finance Act 2004 (deductions from payments to sub-contractors).

(5) This section has effect subject to section 59E and section 357YQ of CTA 2010 (assessment of tax chargeable on restitution interest).

Claim for repayment in advance of liability being established.

59DA

(1) This section applies where a company has paid an amount of corporation tax for an accounting period and the circumstances of the company change, so that the company has grounds for believing that the amount paid exceeds its probable tax liability although that liability has not been finally established.

(2) The company may, by notice given to an officer of the Board, claim repayment of the excess.

No such claim may be made before the date which under section 826 of the principal Act (interest on overpaid tax), subject to regulations under section 826A of that Act, is the material date in relation to that tax.

(3) The notice must state—

(a) the amount which the company considers should be repaid, and

(b) its grounds for believing that the amount paid exceeds its probable tax liability.

(4) If the company has appealed against an amendment of an assessment, or an assessment, relating to the tax liability in question, and the appeal has not been finally determined, it may apply to the tribunal for a determination of the amount which should be repaid to the company pending determination of the liability.

(5) Any such application is to be subject to the relevant provisions of Part 5 of this Act (see, in particular, section 48(2)(b)).

(6) If the company makes an application under section 55(3) or (4) (application to postpone payment pending determination of appeal), that application may be combined with an application under subsection (4) above.

(7) If a company makes a claim or application under this section before it has delivered a company tax return for the period in question, any deductions under section 61 of the Finance Act 2004 (deductions from payments to certain subcontractors) shall be disregarded in considering whether the amount paid by the company exceeds its probable tax liability.

(8) This section has effect subject to section 59E.

Further provision as to when corporation tax is due and payable.

59E

(1) The Treasury may by regulations make provision, in relation to companies of such descriptions as may be prescribed, for or in connection with treating amounts of corporation tax for an accounting period as becoming due and payable on dates which fall on or before the date on which corporation tax for that period would become due and payable apart from this section.

(2) Without prejudice to the generality of subsection (1) above, regulations under this section may make provision—

(a) for or in connection with the determination of amounts of corporation tax which are treated as becoming due and payable under the regulations;

(b) for or in connection with the determination of the dates on which amounts of corporation tax are treated as becoming due and payable under the regulations;

(c) for or in connection with the making of payments to the Board in respect of amounts of corporation tax which are treated as becoming due and payable under the regulations;

(d) for or in connection with the determination of the amount of any such payments as are mentioned in paragraph (c) above;

(e) for or in connection with the determination of the dates on which any such payments as are mentioned in paragraph (c) above become due and payable;

(f) for or in connection with any assumptions which are to be made for any purposes of the regulations;

(g) for or in connection with the payment to the Board of interest on amounts of corporation tax which are treated as becoming due and payable under the regulations;

(h) for or in connection with the repayment of amounts paid under the regulations;

(i) for or in connection with the payment of interest by the Board on amounts paid or repaid under the regulations;

(j) with respect to the furnishing of information to the Board;

(k) with respect to the keeping, production or inspection of any books, documents or other records;

(l) for or in connection with the imposition of such requirements as the Treasury think necessary or expedient for any purposes of the regulations;

(m) for or in connection with appeals in relation to questions arising under the regulations.

(3) Regulations under this section may make provision—

(a) for amounts of corporation tax for an accounting period to be treated as becoming due and payable on dates which fall within the accounting period;

(b) for payments in respect of any such amounts of corporation tax for an accounting period as are mentioned in paragraph (a) above to become due and payable on dates which fall within the accounting period.

(4) Where interest is charged by virtue of regulations under this section on any amounts of corporation tax for an accounting period which are treated as becoming due and payable under the regulations, the company shall, in such circumstances as may be prescribed, be liable to a penalty not exceeding twice the amount of that interest.

(5) Regulations under this section—

(a) may make such modifications of any provisions of the Taxes Acts, or

(b) may apply such provisions of the Taxes Acts,

as the Treasury think necessary or expedient for or in connection with giving effect to the provisions of this section.

(6) Regulations under this section which apply any provisions of the Taxes Acts may apply those provisions either without modifications or with such modifications as the Treasury think necessary or expedient for or in connection with giving effect to the provisions of this section.

(7) Regulations under this section—

(a) may make different provision for different purposes, cases or circumstances;

(b) may make different provision in relation to companies or accounting periods of different descriptions;

(c) may make such supplementary, incidental, consequential or transitional provision as appears to the Treasury to be necessary or expedient.

(8) Subject to subsection (9) below, regulations under this section may make provision in relation to accounting periods beginning before (as well as accounting periods beginning on or after) the date on which the regulations are made.

(9) Regulations under this section may not make provision in relation to accounting periods ending before the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment).

(10) In this section—

“modifications” includes amendments, additions and omissions;

“prescribed” means prescribed by regulations made under this section.

(11) Any reference in this section to corporation tax includes a reference—

(a) to any amount due from a company under section 455 or 464A of CTA 2010 (charge to tax in case of loan or benefit to participator) as if it were an amount of corporation tax chargeable on the company;

(b) to any sum charged on a company at step 5 in section 371BC(1) of TIOPA 2010 (controlled foreign companies) as if it were an amount of corporation tax;

(ba) to any sum chargeable on a company under section 269DA of CTA 2010 (surcharge on banking companies) as if it were an amount of corporation tax chargeable on the company;

(c) to any sum chargeable on a company under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades) as if it were an amount of corporation tax chargeable on the company;

(d) to the bank levy where treated as an amount of corporation tax chargeable on a company by paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy);

(e) to any sum chargeable on a company under section 33 of FA 2022 (residential property developer tax) as if it were an amount of corporation tax chargeable on the company;

(f) to any sum chargeable on a company under section 1 of the Energy (Oil and Gas) Profits Levy Act 2022 as if it were an amount of corporation tax chargeable on the company.

(12) Without prejudice to the generality of any provision above—

(a) in relation to cases where the bank levy is treated as an amount of corporation tax chargeable on a company, regulations under this section may make provision—

(i) for amounts of the bank levy to be treated as becoming due and payable on dates which fall within the chargeable period (within the meaning of Schedule 19 to the Finance Act 2011);

(ii) for payments in respect of any such amounts of the bank levy as are mentioned in sub-paragraph (i) to become due and payable on dates which fall within that period;

(b) in relation to cases where a company on which the bank levy is treated as an amount of corporation tax chargeable for an accounting period has made payments in respect of corporation tax for that period, regulations under this section may make provision for or in connection with determining the extent to which those payments are to be treated as being payments of the bank levy;

(c) in relation to cases where a company (“ the relevant company ”) has made payments in respect of corporation tax for an accounting period wholly or partly on the assumption that the bank levy will be treated as an amount of corporation tax chargeable on the relevant company for that period, regulations under this section may make provision for or in connection with treating those payments (wholly or partly) to have been made by another company if it turns out that the bank levy is not to be treated as an amount of corporation tax chargeable on the relevant company for that period;

(d) where regulations under this section impose a requirement within subsection (2)(j) above to furnish information for purposes related to the bank levy, the regulations may make provision for or in connection with applying Part 7 of Schedule 36 to the Finance Act 2008 in whole or in part (with or without modification) as if the requirement to furnish the information were contained in an information notice within the meaning of that Schedule.

Arrangements for paying tax on behalf of group members

59F

(1) An officer of Revenue and Customs may enter into arrangements for the specified purpose with some or all of the members of a group.

(2) For the purposes of subsection (1), arrangements entered into with some or all of the members of a group are for “the specified purpose” if they are arrangements for one of those members to discharge any liability of each of those members to pay corporation tax for the accounting periods to which the arrangements relate.

(3) For the purposes of this section, a company and all its 51% subsidiaries form a group and, if any of those subsidiaries has 51% subsidiaries, the group includes them and their 51% subsidiaries, and so on.

(4) Arrangements entered into under subsection (1)—

(a) may make provision in relation to cases where companies become or cease to be members of a group,

(b) may make provision in relation to the discharge of liability to pay interest or penalties,

(d) may make provision for or in connection with the termination of the arrangements, and

(e) may make such supplementary, incidental, consequential or transitional provision as is necessary for the purposes of the arrangements.

(5) Arrangements entered into under subsection (1)—

(a) do not affect the liability to corporation tax, or to pay corporation tax, of any company to which the arrangements relate, and

(b) do not affect any other liability under the Tax Acts of any company to which the arrangements relate.

(6) The following amounts are within this subsection—

(a) an amount due from a company under section 455 or 464A of CTA 2010 (charge to tax in case of loan or benefit to participator in close company) as if it were an amount of corporation tax chargeable on the company, and

(b) a sum charged on a company at step 5 in section 371BC(1) of TIOPA 2010 (controlled foreign companies) as if it were an amount of corporation tax, ...

(c) the bank levy where treated as an amount of corporation tax chargeable on a company by paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy), ...

(d) to any sum chargeable on a company under section 33 of FA 2022 (residential property developer tax) as if it were an amount of corporation tax chargeable on the company, and

(e) to any sum chargeable on a company under section 1 of the Energy (Oil and Gas) Profits Levy Act 2022 as if it were an amount of corporation tax chargeable on the company.

CT exit charge payment plans

59FA

(1) Schedule 3ZB contains provisions about CT exit charge payment plans in accordance with which companies may defer payment of certain corporation tax.

(2) Parts 1 and 2 of the Schedule each make provision about the circumstances in which a CT exit charge payment plan may be entered into, and about determining the amount of corporation tax that may be deferred—

(a) see Part 1 in relation to a company which ceases to be resident in the United Kingdom, and

(b) see Part 2 in relation to a company which is not resident in the United Kingdom but which carries on, or has carried on, a trade in the United Kingdom through a permanent establishment there.

(3) Part 3 of the Schedule contains provision about—

(a) entering into a CT exit charge payment plan,

(b) the effect of such a plan,

(d) the methods in accordance with which tax deferred under such a plan may be paid.

CT payment plans for tax on certain transactions with EEA residents

59FB

Schedule 3ZC makes provision enabling a company that is liable to pay corporation tax arising in connection with certain transactions to defer payment of the tax by entering into a CT payment plan.

Managed payment plans

59G

(1) This section applies if a person (“P”) has entered into a managed payment plan in respect of—

(a) an amount on account of income tax which is to become payable in accordance with section 59A(2),

(b) an amount of income tax or capital gains tax which is to become payable in accordance with section 59B, or

(2) P enters into a managed payment plan in respect of an amount if—

(a) P agrees to pay, and an officer of Revenue and Customs agrees to accept payment of, the amount by way of instalments,

(b) the instalments to be paid before the due date are balanced by the instalments to be paid after it (see section 59H), and

(c) the agreement meets such other requirements as may be specified in regulations made by the Commissioners for Her Majesty's Revenue and Customs.

(3) But this section does not apply, in the case of an amount of corporation tax, if an arrangement under section 59F has been made in relation to the amount.

(4) If P pays all of the instalments in accordance with the plan, P is to be treated as having paid, on the due date, the total of those instalments.

(5) If P—

(a) pays one or more instalments in accordance with the plan, but

(b) fails to pay one or more later instalments in accordance with it,

P is to be treated as having paid, on the due date, the total of the instalments paid before the failure (but this is subject to subsection (6)).

(6) If—

(a) subsection (5) applies in a case in which the first failure to pay an instalment occurs before the due date, and

(b) P would (in the absence of a managed payment plan) be entitled to be paid interest on any amount paid before that date,

then, despite that subsection, P is entitled to be paid that interest.

(7) If—

(a) subsection (5) applies,

(b) P makes one or more payments after the due date (whether or not in accordance with the plan), and

P is not liable to a penalty or surcharge for failing to pay the amount of the specified payments on or before the due date.

(8) Regulations under this section may make different provision for different cases.

(9) In this section “the due date”, in relation to an amount mentioned in subsection (1), means the date on which it becomes payable.

Balancing of instalments for the purposes of section 59G

59H

(1) Subsection (2) applies for the purposes of section 59G(2)(b).

(2) The instalments to be paid before the due date are balanced by those to be paid after it if the time value of the instalments to be paid before that date is equal, or approximately equal, to the time value of the instalments to be paid after it.

(3) The time value of the instalments to be paid before the due date is the total of the time value of each of the instalments to be paid before that date (and the time value of the instalments to be paid after that date is to be read accordingly).

(4) The time value of an instalment is—

$$A×T$where—A is the amount of the instalment, andT is the number of days before, or after, the due date that the instalment is to be paid.$

(5) The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision for the purpose of determining when an amount is approximately equal to another amount.

(6) Regulations under this section may make different provision for different cases.

PART VI — COLLECTION AND RECOVERY

Issue of demand notes and receipts.

60

(1) Every collector shall, when the tax becomes due and payable, make demand of the respective sums given to him in charge to collect, from the persons charged therewith, or at the places of their last abode, or on the premises in respect of which the tax is charged, as the case may require.

(2) On payment of the tax, the collector shall if so requested give a receipt.

Distraint and poinding

Distraint by collectors.

61

(1) If a person neglects or refuses to pay the sum charged, upon demand made by the collector, the collector may distrain upon the goods and chattels of the person charged (in this section referred to as “the person in default”.

(2) For the purpose of levying any such distress, a justice of the peace, on being satisfied by information on oath that there is reasonable ground for believing that a person is neglecting or refusing to pay a sum charged, may issue a warrant in writing authorising a collector to break open, in the daytime, any house or premises, calling to his assistance any constable.

Every such constable shall, when so required, aid and assist the collector in the execution of the warrant and in levying the distress in the house or premises.

(3) A levy or warrant to break open shall be executed by, or under the direction of, and in the presence of, the collector.

(4) A distress levied by the collector shall be kept for five days, at the costs and charges of a person in default.

(5) If the person in default does not pay the sum due, together with the costs and charges . . . , the distress shall be appraised by one or more independent persons appointed by the collector, and shall be sold by public auction by the collector for payment of the sum due and all costs and charges.

. . . Any overplus coming by the distress, after the deduction of the costs and charges and of the sum due, shall be restored to the owner of the goods distrained.

(6) The Treasury may by regulations make provision with respect to—

(a) the fees chargeable on or in connection with the levying of distress, and

(b) the costs and charges recoverable where distress has been levied;

and any such regulations shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

(7) This section extends only to Northern Ireland.

Priority of claim for tax.

62

(1) If at any time at which any goods or chattels belonging to any person (in this section referred to as “the person in default”) are liable to be taken by virtue of any execution or other process, warrant, or authority whatever, or by virtue of any assignment, on any account or pretence whatever, except at the suit of the landlord for rent, the person in default is in arrears in respect of any such claims as are referred to in subsection (1A) below, the goods or chattels may not be so taken unless on demand made by the collector the person at whose suit the execution or seizure is made, or to whom the assignment was made, pays or causes to be paid to the collector, before the sale or removal of the goods or chattels, all such sums as have fallen due at or before the date of seizure.

(1A) The sums referred to in subsection (1) above are—

(a) sums due from the person in default on account of deductions of income tax from taxable earnings (as defined by section 10 of ITEPA 2003) paid during the period of twelve months next before the date of seizure, being deductions which the person in default was liable to make under PAYE regulations less the amount of the repayments of income tax which he was liable to make during that period; and

(b) sums due from the person in default in respect of deductions required to be made by him for that period under section 61 of the Finance Act 2004 (sub-contractors in the construction industry).

(2) If the sums referred to in subsection (1) above are not paid within ten days of the date of the demand referred to in that subsection, the collector may distrain the goods and chattels notwithstanding the seizure or assignment, and may proceed to the sale thereof, as prescribed by this Act, for the purpose of obtaining payment of the whole of those sums, and the reasonable costs and charges attending such distress and sale, and every collector so doing shall be indemnified by virtue of this Act.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) This section does not extend to England and Wales.

Recovery of tax in Scotland

63

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Sheriff officer’s fees and outlays.

63A

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Priority of claim for tax in Scotland.

64

(1) If at any time at which any movable goods and effects belonging to any person (in this section referred to as “the person in default”) are liable to be taken by virtue of any ... diligence whatever, or by any assignation, the person in default is in arrears in respect of any such sums as are referred to in subsection (1A) below, the goods and effects may not be so taken unless on demand made by the collector the person proceeding to take the said goods and effects pays such sums as have fallen due at or before the date of poinding or, as the case may be, other diligence or assignation.

(1A) The sums referred to in subsection (1) above are—

(a) sums due from the person in default on account of deductions of income tax from taxable earnings (as defined by section 10 of ITEPA 2003) paid during the period of twelve months next before the date of poinding, being deductions which the person in default was liable to make under PAYE regulations less the amount of the repayments of income tax which he was liable to make during that period; and

(b) sums due from the person in default in respect of deductions required to be made by him for that period under section 61 of the Finance Act 2004 (sub-contractors in the construction industry).

(2) If the sums referred to in subsection (1) above are not paid within ten days of the date of the demand referred to in that subsection, the sums shall, notwithstanding any proceedings for the purpose of taking the said moveable goods and effects, be recoverable by poinding and selling the said moveable goods and effects under warrant obtained in conformity with the provisions contained in section 63 above.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Court proceedings

Magistrates’ courts.

65

(1) Any amount due and payable by way of income tax, capital gains tax or corporation tax which does not exceed £2,000 shall, without prejudice to any other remedy, be recoverable summarily as a civil debt by proceedings commenced in the name of a collector.

(2) All or any of the sums due in respect of tax from any one person and payable to any one collector (being sums which are by law recoverable summarily) may, whether or not they are due under one assessment, be included in the same complaint, summons, order, warrant or other document required by law to be laid before justices or to be issued by justices, and every such document as aforesaid shall, as respects each such sum, be construed as a separate document and its invalidity as respects any one such sum shall not affect its validity as respects any other such sum.

(3) Proceedings under this section ... may be brought in England and Wales at any time within one year from the time when the matter complained of arose.

(4) It is hereby declared that in subsection (1) above the expression “recoverable summarily as a civil debt” in respect of proceedings in Northern Ireland means recoverable in proceedings under Article 62 of the Magistrates’ Courts (Northern Ireland) Order 1981.

(5) The Treasury may by order made by statutory instrument increase the sum specified in sub-section (1) above; and any such statutory instrument shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament.

County courts.

66

(1) Tax due and payable ... may, in England and Wales, and in Northern Ireland where the amount does not exceed the limit specified in Article 10(1) of the County Courts (Northern Ireland) Order 1980, without prejudice to any other remedy, be sued for and recovered from the person charged therewith as a debt due to the Crown by proceedings in England and Wales in the county court or in Northern Ireland in a county court ... .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In this section as it applies in Northern Ireland the expression “county court” shall mean a county court held for a division under the County Courts (Northern Ireland) Order 1980.

(4) Sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this section, and Part III of the County Courts (Northern Ireland) Order 1980 (general civil jurisdiction) shall apply for the purposes of this section in Northern Ireland.

Inferior courts in Scotland.

67

(1) In Scotland, tax due and payable ... may, without prejudice to any other remedy, be sued for and recovered from the person charged therewith as a debt due to the Crown by proceedings commenced in the name of a collector in the sheriff court ... .

(1A) An officer of the Board who is authorised by the Board to do so may address the court in any proceedings under this section.

(2) Sections 65 and 66 above shall not apply in Scotland.

High Court, etc.

68

(1) Any tax may be sued for and recovered from the person charged therewith in the High Court as a debt due to the Crown, or by any other means whereby any debt of record or otherwise due to the Crown can, or may at any time, be sued for and recovered, as well as by the other means specially provided by this Act for levying the tax.

(2) All matters within the jurisdiction of the High Court under this section shall be assigned in Scotland to the Court of Session sitting as the Court of Exchequer .

Supplemental

Recovery of penalty ... or interest

69

(1) This section applies to—

(a) penalties imposed under Part 2, 5A or 10 of this Act or Schedule 18 to the Finance Act 1998;

(aa) penalties imposed under Schedule 26 to the Finance Act 2021;

(b) penalties imposed under any paragraph of Schedule 56 to the Finance Act 2009 in respect of an amount falling within any of the following items of the Table in paragraph 1 of that Schedule—

(i) item 1, 12, 18 or 19, or

(ii) insofar as the tax falls within item 1, item 17, 23 or 24;

(d) interest charged under section 101 of the Finance Act 2009.

(2) An amount by way of penalty ... or interest to which this section applies shall be treated for the purposes of the following provisions as if it were an amount of tax.

(3) Those provisions are—

(a) sections 61, 63 and 65 to 68 of this Act;

(b) section 35(2)(g)(i) of the Crown Proceedings Act 1947 (rules of court: restriction of set-off or counterclaim where proceedings, or set-off or counterclaim, relate to tax) and any rules of court imposing any such restriction;

(c) section 35(2)(b) of that Act as set out in section 50 of that Act (which imposes corresponding restrictions in Scotland).

Evidence.

70

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) A certificate of the inspector or any other officer of the Board that it has been determined that tax carries interest under section 88 of this Act, together with a certificate of the collector that payment of the interest has not been made to him, or, to the best of his knowledge and belief, to any other collector, or to any person acting on his behalf or on behalf of another collector, shall be sufficient evidence—

(a) that interest is chargeable on the tax from the date when for the purposes of section 88 of this Act the tax ought to have been paid, and

(b) that the sum mentioned in the certificate is unpaid and is due to the Crown;

and any document purporting to be such a certificate as is mentioned in this subsection shall be deemed to be such a certificate unless the contrary is proved.

(4) A written statement as to the wages, salaries, fees, and other earnings or amounts treated as earnings paid for any period to the person against whom proceedings are brought under section 65, 66 or 67 of this Act, purporting to be signed by his employer for that period or by any responsible person in the employment of the employer, shall in such proceedings be prima facie evidence that the wages, salaries, fees and other earnings or amounts treated as earnings therein stated to have been paid to the person charged have in fact been so paid.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In subsection (4) “earnings or amounts treated as earnings” means earnings or amounts treated as earnings which constitute employment income (see section 7(2)(a) or (b) of ITEPA 2003).

Payments by cheque.

70A

(1) For the purposes of this Act and the provisions mentioned in subsection (2) below, where—

(a) any payment to an officer of the Board or the Board is made by cheque, and

(b) the cheque is paid on its first presentation to the banker on whom it is drawn,

the payment shall be treated as made on the day on which the cheque was received by the officer or the Board.

(2) The provisions are—

(a) sections 824 to 826 of the principal Act (repayment supplements and interest on tax overpaid); ...

(b) section 283 of the 1992 Act (repayment supplements); and

(3) This section is subject to regulations under section 95(1) of the Finance Act 2007 (payment by cheque).

PART VII — PERSONS CHARGEABLE IN A REPRESENTATIVE CAPACITY, ETC.

Income Tax

Bodies of persons.

71

(1) ... every body of persons shall be chargeable to income tax in like manner as any person is chargeable under the Income Tax Acts.

(2) Subject to section 108 of this Act, the chamberlain or other officer acting as treasurer, auditor or receiver for the time being of any body of persons chargeable to income tax shall be answerable for doing all such acts as are required to be done under the Income Tax Acts for the purpose of the assessment of the body and for payment of the tax.

(3) Every such officer as aforesaid may from time to time retain, out of any money coming into his hands on behalf of the body, so much thereof as is sufficient to pay the income tax charged upon the body, and shall be indemnified for all such payments made in pursuance of the Income Tax Acts .

Trustees, guardians, etc., of incapacitated persons.

72

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

Further provision as to infants.

73

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

Personal representatives.

74

(1) If a person chargeable to income tax dies, the executor or administrator of the person deceased shall be liable for the tax chargeable on such deceased person, and may deduct any payments made under this section out of the assets and effects of the person deceased .

(2) On neglect or refusal of payment, any person liable under this section may be proceeded against in like manner as any other defaulter .

Receivers appointed by a court.

75

(1) A receiver appointed by any court in the United Kingdom which has the direction and control of any property in respect of which income tax is charged in accordance with the provisions of the Income Tax Acts shall be assessable and chargeable with the tax in like manner and to the like amount as would be assessed and charged if the property were not under the direction and control of the court.

(2) Every such receiver shall be answerable for doing all matters and things required to be done under the Income Tax Acts for the purpose of assessment and payment of income tax .

Protection for certain trustees, agents and receivers.

76

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

Capital gains tax

Application of Part VII to capital gains tax.

77

(1) This Part of this Act (except section 76 above) shall apply in relation to capital gains tax as it applies in relation to income tax . . . , and subject to any necessary modifications.

(2) This Part of this Act as applied by this section shall not affect the question of who is the person to whom chargeable gains accrue, or who is chargeable to capital gains tax, so far as that question is relevant for the purposes of any exemption, or of any provision determining the rate at which capital gains tax is chargeable.

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

77A

PART 7A — Holders of licences under the Petroleum Act 1998

Licence-holders' liabilities for tax assessed on non-UK residents

Pre-conditions for serving secondary-liability notice

77B

(1) Conditions A to E are the pre-conditions for the purposes of section 77C.

(2) Condition A is that tax is assessed on a person not resident in the United Kingdom.

(3) Condition B is that the tax is assessed in reliance on—

(a) section 276 of the 1992 Act,

(b) section 874 of ITTOIA 2005, or

(4) Condition C is that the tax assessed is not tax under ITEPA 2003.

(5) Condition D is that—

(a) there is a licence to which the tax assessed is related (see section 77J for the meaning of tax related to a licence),

(b) there is more than one licence to which the tax assessed is related, or

(c) there is a licence, or more than one licence, to which part of the tax assessed is related but in addition part of the tax assessed is not related to any licence.

(6) Condition E is that the tax is not paid in full within 30 days after it becomes due and payable.

(7) In this Part “licence” means a licence under Part 1 of the Petroleum Act 1998.

Secondary-liability notices

77C

(1) If each of the pre-conditions (see section 77B) is met, an officer of Revenue and Customs may serve on the holder of the licence concerned, or on the holder of any of the licences concerned, a notice—

(a) that states particulars of the assessment,

(b) that states the amount remaining unpaid and the date when it became payable,

(c) that requires the holder to pay, within 30 days of the service of the notice, the amount for which the holder is liable, and

(d) that, if the amount for which the holder is liable is given by subsection (3) or section 77G(7), gives particulars of how the amount was determined.

(2) For the purposes of subsection (1), the amount for which the holder is liable is the amount remaining unpaid, together with any interest on it under sections 86 and 87A, but this is subject to subsection (3) and section 77G(7).

(3) In a case within section 77B(5)(b) or (c), the amount for which the holder of the licence is liable is given by—

$LT×(A+I)$

(4) In subsection (3)—

A is the amount remaining unpaid,

I is any interest due on that amount under sections 86 and 87A,

T is the total amount of the profits or chargeable gains in respect of which the assessment is made, and

L is so much of that total amount as is profits or chargeable gains related to the licence.

(5) The power under subsection (1) is subject to section 77E (certain pre-1974 cases).

(6) In this Part “secondary-liability notice” means a notice under subsection (1).

Payments under secondary-liability notices

77D

(1) Any amount which a person is required to pay by a secondary-liability notice may be recovered from the person as if it were tax due and duly demanded from the person.

(2) If a person (“H”) pays any amount which a secondary-liability notice requires H to pay, H may recover the amount from the person on whom the assessment concerned was made.

(3) A payment in pursuance of a secondary-liability notice is not allowed as a deduction in calculating any income, profits or losses for any tax purposes.

Exception for certain pre-1974 cases

77E

(1) Section 77C(1) does not give power to serve a secondary-liability notice on the holder of a licence if the profits arose, or the chargeable gains accrued, to the assessed person in consequence of a contract made by the holder before 23 March 1973.

(2) The exception under subsection (1) does not apply if—

(a) the assessed person is connected with the holder, or

(b) the contract was substantially varied on or after 23 March 1973.

(3) For the purposes of subsection (2), whether a person is connected with another is determined in accordance with section 1122 of CTA 2010.

Exemption certificates

Issue, cancellation and effect of exemption certificates

77F

(1) This section applies if there is a person (“T”) who will or might become liable to tax which, if unpaid, could be recovered under this Part from a person (“H”) who is the holder of a licence.

(2) If an officer of Revenue and Customs, on an application made by T, is satisfied that T will comply with any obligations imposed on T by the Taxes Acts, the officer may issue to H a certificate exempting H from section 77C with respect to any tax payable by T.

(3) If a certificate is issued to H under subsection (2), an officer of Revenue and Customs may, by notice in writing to H, cancel the certificate from the date specified in the notice.

(4) The date specified in a notice under subsection (3) may not be earlier than 30 days after the service of the notice.

(5) If a certificate is issued to H under subsection (2), section 77C does not apply to any tax payable by T which becomes due while the certificate is in force.

(6) If a certificate is issued to H under subsection (2) but is subsequently cancelled under subsection (3), section 77C also does not apply to any tax payable by T which—

(a) becomes due after the certificate is cancelled, but

(b) is in respect of profits arising, or chargeable gains accruing, while the certificate is in force.

Liabilities for assessments made after exemption certificate cancelled

77G

(1) Subsection (7) applies if—

(a) each of conditions A to C is met, and

(b) one of conditions D and E is met.

(2) Condition A is that, after the cancellation under section 77F(3) of a certificate issued under section 77F(2) to a person (“H”) who is the holder of a licence, tax related to the licence is assessed on the applicant for the certificate.

(3) Condition B is that the tax is assessed in reliance on—

(a) section 276 of the 1992 Act,

(b) section 874 of ITTOIA 2005, or

(4) Condition C is that the tax assessed is not tax under ITEPA 2003.

(5) Condition D is that—

(a) ignoring section 77F, H could be required by a secondary-liability notice to pay all of the tax remaining unpaid under the assessment, and

(b) the profits or chargeable gains in respect of which the assessment is made include (but are not limited to) profits arising, or chargeable gains accruing, while the certificate is in force.

(6) Condition E is that—

(a) as a result of section 77C(3), but ignoring section 77F, H could be required by a secondary-liability notice to pay some, but not all, of the tax remaining unpaid under the assessment, and

(b) the profits or chargeable gains that are—

(i) ones in respect of which the assessment is made, and

(ii) related to the licence,

include (but are not limited to) profits arising, or chargeable gains accruing, while the certificate is in force.

(7) If this subsection applies then, for the purposes of section 77C(1), the amount for which the holder of the licence is liable is the amount given by—

$A×(1—CIFCIF+NIF)$

together with a corresponding proportion of any interest due under sections 86 and 87A on the amount remaining unpaid.

(8) In subsection (7)—

A is the amount that H could be required to pay as mentioned in paragraph (a) of whichever of conditions D and E is met (“the operative condition”),

CIF is the amount of the profits or chargeable gains mentioned in paragraph (b) of the operative condition that are ones arising, or accruing, while the certificate is in force, and

NIF is the amount of the profits or chargeable gains mentioned in paragraph (b) of the operative condition that are ones arising, or accruing, while the certificate is not in force.

Supplementary

Calculations under sections 77C(3) and 77G(7)

77H

(1) Subsection (2) applies for the purposes of calculating any of the following amounts of profits or chargeable gains—

(a) L in a calculation under section 77C(3),

(b) CIF in a calculation under section 77G(7), and

(2) The amount is to be calculated as if for the purposes of making a separate assessment in respect of those profits or chargeable gains on the person on whom the assessment was made.

(3) An officer of Revenue and Customs applying subsection (2) is to make all such allocations and apportionments of receipts, expenses, allowances and deductions taken into account, or made, for the purposes of the actual assessment as appear to the officer to be just and reasonable in the circumstances.

Information

77I

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

77J

(1) Subsections (2) and (3) apply for the purposes of this Part.

(2) An amount of tax is related to a licence if the tax is in respect of profits or chargeable gains related to the licence.

(3) Profits or chargeable gains are related to a licence if they are—

(a) profits from activities authorised by the licence,

(b) profits from activities carried on in connection with activities authorised by the licence, or

(i) activities authorised by the licence, or

(ii) activities carried on in connection with activities authorised by the licence.

(4) In this section—

(a) “designated area” means an area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964,

(b) “exploration or exploitation activities” means activities carried on in connection with the exploration or exploitation of so much of the seabed and subsoil and their natural resources as is situated in the United Kingdom or a designated area,

(i) assets to be produced by exploration or exploitation activities,

(ii) interests in such assets, or

(iii) the benefit of such assets,

(d) any reference to the disposal of exploration or exploitation rights includes a reference to the disposal of unlisted shares deriving their value, or the greater part of their value, directly or indirectly from such rights,

(e) “shares” includes—

(i) stock, and

(ii) securities not creating or evidencing a charge on assets,

(f) “unlisted shares” means shares that are not listed on a recognised stock exchange, and

(g) “recognised stock exchange” has the meaning given by section 1005(1) and (2) of ITA 2007.

Other definitions in Part 7A

77K

(1) This section applies for the purposes of this Part.

(2) “Licence” has the meaning given by section 77B(7).

(3) “Secondary-liability notice” has the meaning given by section 77C(6).

PART VIII — CHARGES ON NON-RESIDENTS

Income tax

Method of charging non-residents.

78

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

Profits from branch or agency.

79

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

Charge on percentage of turnover.

80

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

Taxation on basis of merchanting profit.

81

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

Savings.

82

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

Responsibilities and indemnification of persons in whose name a non-resident person is chargeable.

83

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

Capital gains tax

Gains from branch or agency.

84

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

Corporation tax

Application of Part VIII to corporation tax.

85

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

85A

PART IX — INTEREST ON OVERDUE TAX

Interest on overdue income tax and capital gains tax.

86

(1) The following, namely—

(a) any amount on account of income tax which becomes due and payable in accordance with section 59A(2) of this Act, and

(b) any income tax or capital gains tax which becomes due and payable in accordance with section 55 or 59B of this Act,

shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the relevant date until payment.

(2) For the purposes of subsection (1)(a) above the relevant date is whichever of the dates mentioned in section 59A(2) of this Act is applicable; and for the purposes of subsection (1)(b) above the relevant date is—

(a) in any such case as is mentioned in subsection (3) of section 59B of this Act, the last day of the period of three months mentioned in that subsection; and

(b) in any other case, the date mentioned in subsection (4) of that section.

(3) Subsection (1) above applies even if the relevant date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

(4) Subsection (5) below applies where as regards a year of assessment—

(a) any person makes a claim under subsection (3) or (4) of section 59A of this Act in respect of the amounts (the section 59A amounts) payable by him in accordance with subsection (2) of that section, and

(b) an amount (the section 59B amount) becomes payable by him

(i) in accordance with section 59B(3), (4) or (5) of this Act or

(ii) in accordance with section 59B(6) of this Act in respect of income tax assessed under section 29 of this Act.

(5) Interest shall be payable under this section as if each of the section 59A amounts had been equal to—

(a) the aggregate of that amount and 50 per cent. of the section 59B amount, or

(b) the amount which would have been payable in accordance with subsection (2) of section 59A of this Act if the claim under subsection (3) or (4) of that section had not been made,

whichever is the less.

(6) In determining for the purposes of subsections (4) and (5) above what amount (if any) is payable by any person in accordance with section 59B(3), (4) or (5) of this Act or, in respect of income tax assessed under section 29 of this Act, in accordance with section 59B(6) of this Act—

(a) it shall be assumed that both of the section 59A amounts have been paid, and

(b) no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.

(7) Subsection (8) below applies where as regards any person and a year of assessment—

(a) amounts (the section 59A amounts) become payable by him in accordance with section 59A(2) of this Act, and

(b) an amount (the section 59B amount) becomes repayable to him in accordance with section 59B (3), (4) or (5) of this Act.

(8) So much of any interest payable under this section on either of the section 59A amounts as is not attributable to the amount by which that amount exceeds 50 per cent. of the section 59B amount shall be remitted.

(9) In determining for the purposes of subsections (7) and (8) above what amount (if any) is repayable to any person in accordance with section 59B(3), (4) or (5) of this Act, no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.

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

86A

Interest on overdue income tax deducted at source

87

(1) Income tax which is assessable under Chapter 15 of Part 15 of ITA 2007 carries interest at the rate applicable under section 178 of the Finance Act 1989 from the date when it was due under section 951 of ITA 2007 until payment.

(2) Subsection (1) applies—

(a) whether or not an assessment is made, and

(b) whether or not income tax which is assessed has been paid when the assessment is made.

(3) Subsection (1) applies even if the date when the income tax should have been paid is a non-business day as defined by section 92 of the Bills of Exchange Act 1882.

(4) Subsection (5) applies to any income tax which—

(a) was payable under Chapter 15 of Part 15 of ITA 2007 (collection: deposit-takers, building societies and certain companies) in respect of payments within section 946 of that Act made in a return period,

(b) was not paid on the date when it was due under section 951 of that Act, and

(c) has subsequently been discharged or repaid under section 953 of that Act because the person who made the payments received payments on which it suffered income tax by deduction in a later return period.

(5) The income tax carries interest under subsection (1) from the date when it was due under section 951 of ITA 2007 until the earliest of—

(a) the date when the income tax was paid,

(b) the date when the person delivered a return for the later return period, and

but subsection (1) does not otherwise apply to the income tax.

(6) In this section “return period” means a period for which a return is required to be made under Chapter 15 of Part 15 of ITA 2007.

Interest on overdue corporation tax etc.

87A

(1) Corporation tax shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date when the tax becomes due and payable (in accordance with section 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 Bills of Exchange Act 1882.

(3) In relation to corporation tax assessed or treated as assessed by virtue of section 346(2) or 347(1) of the principal Act, 137(4), 139(7) or 190 ... of the 1992 Act ... paragraph 75A(2) of Schedule 18 to the Finance Act 1998, ... paragraph 69 of Schedule 29 to the Finance Act 2002 or 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.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4A) In a case where—

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

(b) as a result of a claim under section 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

(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 as mentioned in subsection (8) below.

(4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In any case where—

(a) on a claim under section 37 of CTA 2010, the whole or any part of a loss incurred in an accounting period (“the later period”) has been relieved (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,

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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.

(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).

Interest on tax recovered to make good loss due to taxpayer’s fault.

88

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

Determinations under section 88.

88A

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

The prescribed rate of interest.

89

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

Interest on tax payable gross

90

(1) Interest payable under this Part of this Act

(a) shall be paid without any deduction of income tax ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Effect on interest of reliefs.

91

(1) Where any amount of interest is payable under section 86 ... of this Act in relation to an assessment, and relief from tax charged by the assessment is given to any person by a discharge of any of that tax, such adjustment shall be made of the said amount, and such repayment shall be made of any amounts previously paid under that section in relation to the assessment, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to the assessment is the same as it would have been if the tax discharged had never been charged.

(1A) Where interest is payable under section 87A of this Act in respect of an amount of corporation tax for an accounting period, and relief from tax is given by a discharge of any of that corporation tax—

(a) such adjustment shall be made of the amount of interest payable under that section in respect of corporation tax for that accounting period, and

(b) such repayment shall be made of any amounts of interest previously paid under that section in respect of that corporation tax,

as are necessary to secure that the total sum (if any) paid or payable under that section in respect of corporation tax for that accounting period is the same as it would have been if the tax discharged had never been charged.

(1B) Subsection (1A) above has effect subject to section 87A(4), (4A), (4B), (6) and (7) of this Act.

(2) Subject to subsection (2A) below Where relief from tax ... paid for any chargeable period is given to any person by repayment, he shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the tax charged on him (whether alone or together with other persons) by or by virtue of any assessment for or relating to the same chargeable period, so, however, that it shall not be applied to any assessment made after the relief was given and that it shall not be applied to more than one assessment so as to reduce, without extinguishing, the amount of tax charged thereby.

(2A) In any case where—

(a) relief from corporation tax is given to any person by repayment, and

(b) that tax was paid for an accounting period ending after the day which is the appointed day for the purposes of section 10 of the principal Act,

that person shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the corporation tax charged on him for that period.

(3) Notwithstanding anything in the preceding provisions of this section, no relief, whether given by way of discharge or repayment, shall be treated for the purposes of this section as—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) affecting tax charged by any assessment to income tax made under Schedule A or Schedule D if either—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) it arises in connection with income taxable otherwise than under Schedule A or Schedule D, or

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