Citation, commencement and effect_I1

1.—(1) These Regulations may be cited as the Corporation Tax (Instalment Payments) Regulations 1998 and shall come into force on 7th January 1999.

(2) These Regulations have effect in relation to accounting periods of companies ending on or after 1st July 1999.

[^F1Interpretation _cross-notes

2.—(1) In these Regulations—

“accounting period” shall be construed in accordance with Chapter 2 of Part 2 of CTA 2009;

“applicable accounting period” means any accounting period for which bank levy is chargeable in respect of the chargeable period determined in accordance with—

[^F2 “large company” has the meaning given by regulation 3(1) or 3A (as the case may be); ^F2]

^F3...

“Schedule 18” means Schedule 18 to the Finance Act 1998 ;

“Schedule 19” means Schedule 19 to the Finance Act 2011 ;

“the bank levy” means the tax charged in accordance with Schedule 19;

“the chargeable period” has the meaning given by paragraph 4 or paragraph 5 of Schedule 19 (as the case may be) ;

“the relevant entity” has the meaning given by paragraph 5 of Schedule 19;

“the relevant group” has the meaning given by paragraph 4 of Schedule 19;

“the responsible member” has the meaning given by paragraph 54 of Schedule 19;

“the Management Act” means the Taxes Management Act 1970 ; ^F4 ...

[^F5 “the Taxes Act” means the Income and Corporation Taxes Act 1988 ; ^F5]

[^F6 “very large company” has the meaning given by regulation 3(2) or 3A (as the case may be). ^F6]

(2) References in these Regulations to profits of a company in any accounting period are references to the company’s augmented profits within the meaning given by section [^F7 sections 18L and 18M^F7] of CTA 2010.

[^F8 (2A) The rules in Part 3A of CTA 2010 (see sections 18E to 18J) which apply for determining whether a company is another company's associated company in an accounting period for the purposes of section 18D of that Act apply for the purposes of these Regulations.^F8]

(3)[^F9 Except as provided by regulation 3A, references in these Regulations^F9] to the total liability of a company for an accounting period are references to the amount of tax payable for that period by the company as calculated in accordance with paragraph 8(1) of Schedule 18.^F1]

[^F10Large and very large companies

3.—(1) Subject to paragraphs (3) to (5), a company (other than a relevant entity or a responsible member) is a large company by virtue of this regulation in respect of an accounting period if its profits in that period exceed £1.5 million but do not exceed £20 million.

(2) Subject to paragraphs (3) and (4), a company (other than a relevant entity or a responsible member) is a very large company by virtue of this regulation in respect of an accounting period if its profits in that period exceed £20 million.

(3) The amounts of profits specified in paragraphs (1) and (2) are subject to the provisions in paragraphs (8) and (10).

(4) A company is not in respect of an accounting period—

(a)a large company by virtue of paragraph (1); or

(b)a very large company by virtue of paragraph (2),

if its total liability for the period does not exceed £10,000 (or such amount as applies by virtue of paragraph (10)).

(5) A company is not in respect of an accounting period (“AP”) a large company by virtue of this regulation where the profits of the company in AP do not exceed £10 million (or such amount as applies by virtue of paragraphs (8) and (10)) and—

(a) during any part of the period (“AP-12”) of 12 months immediately preceding AP, the company did not exist or did not have an accounting period; or

(b)in respect of any accounting period which fell within or ended in AP-12 the company was not—

(i)a large company other than by reason of the operation of this paragraph, or

(ii)a very large company.

(6) Paragraph (8) applies where a company has one or more related [^F11 associated^F11] companies in an accounting period.

(7) For the purposes of this regulation, the number (“N”) of related [^F11 associated ^F11] companies of a company in an accounting period (“AP”) is to be determined—

(a) as the number existing at the end of the accounting period (“AP-1”) immediately preceding AP; or

(b)where there is no AP-1 or AP-1 did not end on the day before AP commenced, as the number existing at the commencement of AP.

(8) Where this paragraph applies by virtue of paragraph (6), whether a company is (or is not) a large company or a very large company in respect of an accounting period by virtue of this regulation is to be determined with the following modifications—

(a) in paragraph (1), for “£1.5 million” substitute “£1.5 million/1+N”;

(b) in paragraphs (1) and (2), for “£20 million” substitute “£20 million/1+N”; and

(c) in paragraph (5), for “£10 million” substitute “£10 million/1+N,

but the amounts in sub-paragraphs (a), (b) and (c) are subject to the provisions in paragraph (10).

(9) Except where paragraph (4) applies, whether a company is (or is not) a large company or a very large company by virtue of this regulation is to be determined as it would have been determined apart from sections 330 (supplementary charge in respect of ring fence trades) and 331 (meaning of “financing costs” etc ) of CTA 2010 [^F12 and apart from the provision made by the Energy (Oil and Gas) Profits Levy Act 2022 ^F12] .

(10) Where an accounting period is a period of less than 12 months [^F13 and paragraph (11) does not apply^F13] , whether a company is (or is not) a large company or a very large company in respect of that period by virtue of this regulation is to be determined by making a proportionate reduction to the following amounts—

(a)£10,000 in paragraph (4);

(b)£1.5 million in paragraph (1) or £1.5 million/1+N in that paragraph where paragraph (8) applies;

(c)£10 million in paragraph (5) or £10 million/1+N in that paragraph where paragraph (8) applies; and

(d)£20 million in paragraphs (1) and (2) or £20 million/1+N in those paragraphs where paragraph (8) applies.

[^F14 (11) A company which—

(a)is chargeable to corporation tax for an accounting period only because of a chargeable gain accruing to the company on the disposal of an asset, and

(b)would, apart from this paragraph, be a very large company by virtue of this regulation in respect of the accounting period,

is to be treated for the purposes of these regulations as if it were a large company by virtue of paragraph (1).^F14]

Large and very large companies: bank levy

3A.—(1) This regulation applies where a company is a relevant entity or a responsible member.

(2) Subject to paragraphs (4) to (7), a company is a very large company by virtue of this regulation in respect of an accounting period if its profits in that period exceed £20 million.

(3) A company which is not a very large company in respect of an accounting period by virtue of paragraph (2) is a large company in respect of that period.

(4) A company is not in respect of an accounting period a very large company by virtue of paragraph (2) if its total liability for the period does not exceed £10,000 (or such amount as applies by virtue of paragraph (7)).

(5) Where in an accounting period a company has one or more [^F15 associated ^F15] companies, whether the company is (or is not) a very large company by virtue of this regulation in respect of that period is to be determined by substituting in paragraph (2) “£20 million/1+N” for “£20 million”.

(6) The amount of “£20 million/1+N” in paragraph (5) is subject to paragraph (7).

(7) Where an accounting period is a period of less than 12 months, whether a company is (or is not) a very large company in respect of that period by virtue of this regulation is to be determined by making a proportionate reduction to the following amounts—

(a)£20 million in paragraph (2) or £20 million/1+N in that paragraph where paragraph (5) applies; and

(b)£10,000 in paragraph (4).

(8) For the purposes of this regulation—

(a) “N” has the same meaning as it has for the purposes of regulation 3; and

(b) “total liability” excludes any amount of bank levy payable. ^F10]

Instalment payments—transitional provision

^F164. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Instalment payments – transitional provisions: the bank levy (applicable accounting periods ending on or before 19th July 2011 where company becomes a large company by virtue of regulation 3(1A))

^F174A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Instalment payments – transitional provisions: the bank levy (applicable accounting periods ending on or before 19th July 2011 where company is a large company otherwise than by virtue of regulation 3(1A))

^F184B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Instalment payments – transitional provisions: the bank levy (applicable accounting periods beginning on or before 19th July 2011 and ending after that date where company is a large company by virtue of regulation 3(1A))

^F194C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Instalment payments – transitional provisions: the bank levy (applicable accounting periods beginning on or before 19th July 2011 but ending after that date where company is a large company otherwise than by virtue of regulation 3(1A))

^F204D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Instalment payments—principal provision_I2

5.—(1) Save as regards any amount falling within regulation 4(1)(b), (2)(b) [^F21, (3)(b) or regulation 5A^F21] , amounts in respect of the total liability of a large company for an accounting period shall be treated as becoming due and payable as follows.

(2) Subject to paragraph (4), the amount of the company’s total liability for that period or, as the case may be, the specified percentage amount shall be treated as becoming due and payable in instalments (not exceeding four) on the dates specified in paragraph (3).

(3) The first instalment payment shall be treated as becoming due and payable on the date which is six months and thirteen days from the start of the accounting period.

• The final instalment payment shall be treated as becoming due and payable on the date which is three months and fourteen days from the end of the accounting period.

• An additional instalment payment or additional instalment payments shall, where the length of the accounting period so allows, each be treated as becoming due and payable on the date which is three months after the date of the immediately preceding instalment payment.

(4) Where the length of the accounting period is such that the date which is three months and fourteen days from the end of the accounting period falls earlier than the date which is six months and thirteen days from the start of the accounting period, the amount of the company’s total liability for that period or, as the case may be, the specified percentage amount shall be treated as becoming due and payable on the date which is three months and fourteen days from the end of the accounting period.

(5) Where in accordance with paragraph (2) amounts in respect of the amount of the company’s total liability for an accounting period or in respect of the specified percentage amount are treated as becoming due and payable in instalments, the amount treated as becoming due and payable on any instalment payment date shall be calculated in accordance with paragraphs (6) to (8) and by reference to the formula—

(6) The amount treated as becoming due and payable on the first instalment payment date is the smaller of CTI and the amount resulting from the formula specified in paragraph (5).

(7) The amount treated as becoming due and payable on each subsequent instalment payment date other than the final instalment payment date is the smaller of—

(a)the balance of the company’s total liability for that accounting period or of the specified percentage amount carried forward from the immediately preceding instalment payment date, and

(b)the amount resulting from the formula specified in paragraph (5).

(8) The amount treated as becoming due and payable on the final instalment payment date is the balance of the company’s total liability for that accounting period or of the specified percentage amount carried forward from the immediately preceding instalment payment date.

(9) In this regulation—

• “the appropriate decimal” is a decimal, calculated to two places rounded arithmetically where necessary, representing the number of days in the accounting period falling outside the whole months falling within that period and corresponding to the fraction of which the numerator is the number of those days and the denominator is 30;

• “the specified percentage amount” means an amount equal to the percentage specified in regulation 4(1)(a), (2)(a) or (3)(a), as the case may be.

[^F23Instalment 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 [^F24, adjusted ring fence profits and levy profits^F24]

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—

(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”. ^F23]

[^F25Instalment payments – ring fence profits and adjusted ring fence profits

5A. —(1) This regulation applies to amounts in respect of the liability to corporation tax [^F26 , supplementary charge and energy (oil and gas) profits levy ^F26] in relation to the ring fence profits [^F27 , adjusted ring fence profits and levy profits ^F27] of a large company [^F28 or very large company ^F28] for an accounting period (“the ring fence amount”).

(2) The ring fence amount shall be treated as becoming due and payable in instalments (not exceeding three) on the dates specified in paragraph (3).

(3) The first instalment payment shall be treated, subject to paragraph (4), as being due and payable on the date which is six months and 13 days from the start of the accounting period.

The final instalment payment shall be treated as being due and payable on the date which is 14 days from the end of the accounting period.

• An additional instalment payment shall, where the length of the accounting period so allows, be treated as becoming due and payable on the date which is three months after the date of the first instalment payment.

(4) Where the length of the accounting period is such that the date which is 14 days from the end of the accounting period falls earlier than the date which is six months and 13 days from the start of the accounting period, the ring fence amount shall be treated as becoming due and payable on the date which is 14 days from the end of the accounting period.

(5) Where in accordance with paragraph (2) ring fence amounts are treated as becoming due and payable in instalments, the amount treated as becoming due and payable on any instalment payment date shall be calculated in accordance with paragraphs (6) to (8) and by reference to the formula—

^F29(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)^F30... 4 x RFA / n

• where—

• RFA is the ring fence amount, andn is the number of whole months falling within that accounting period plus the appropriate decimal.

(6) The amount treated as becoming due and payable on the first instalment payment date is the smaller of RFA and the amount resulting from the formula in paragraph (5).

(7) The amount treated as becoming due and payable on any subsequent instalment payment date other than the final instalment payment date is the smaller of—

(a)the balance of the company’s ring fence amount for that accounting period carried forward from the immediately preceding instalment payment date, and

(b)the amount resulting from the formula specified in paragraph (5).

(8) The amount treated as becoming due and payable on the final instalment payment date is the balance of the company’s ring fence amount for that accounting period carried forward from the immediately preceding instalment payment date.

(9) In this regulation—

“adjusted ring fence profits” has the meaning given in section [^F31 330(2) of CTA 2010 ^F31] ;

“the appropriate decimal” is a decimal, calculated to two places rounded arithmetically where necessary, representing the number of days in the accounting period falling outside the whole months falling within that period and corresponding to the fraction of which the numerator is the number of those days and the denominator is 30;

[^F32 “ energy (oil and gas) profits levy ” has the same meaning as in the Energy (Oil and Gas) Profits Levy Act 2022 ;

“ levy profits ” has the same meaning as in the Energy (Oil and Gas) Profits Levy Act 2022 ; ^F32]

“ring fence profits” has the meaning given in section [^F33 276 of CTA 2010 ^F33] ;

“supplementary charge” means the charge imposed by section [^F34 330(1) of CTA 2010 ^F34] . ^F25]

[^F35Instalment payments – the bank levy – anti-avoidance

5B.—(1) Paragraphs (3) and (4) apply if on or after 31st March 2011 there is a relevant amendment—

(a)in relation to the accounting period of an entity (E) which is the chargeable member; or

(b)in relation to the accounting periods of E and any other chargeable member; and

as a consequence of the relevant amendment there is no chargeable member which meets, or would meet, the requirements of paragraph 54(3) or (5) of Schedule 19 (meaning of the responsible member) at the end of the chargeable period.

(2) In relation to E and, where relevant, any other chargeable member a relevant amendment is an alteration to—

(a)the ending of an accounting period, as a result of an event referred to in section 10 (end of accounting period) or section 12 (companies being wound up) of CTA 2009; or

(b)the commencement of an accounting period, as a result of an event referred to in section 9 (beginning of an accounting period) or section 12(5) of CTA 2009;

the main purpose, or one of the main purposes, of which is to obtain a tax advantage.

(3) Where this paragraph applies for the purposes of ascertaining the dates on which instalment payments are treated as becoming due and payable in accordance with [^F36 regulation 5 or 5AZC ^F36] , the applicable accounting period of the entity that is the responsible member in relation to the chargeable period is to be treated as beginning and ending on the dates on which the chargeable period begins and ends (“the assumption”).

(4) Where paragraph (3) applies, the assumption will apply in relation to any applicable accounting periods that relate to a subsequent chargeable period where there is no chargeable member which meets the requirements of paragraph 54(3) or (5) of Schedule 19.

(5) In this regulation—

“tax advantage” has the same meaning as in section 1139 of CTA 2010; and

“the chargeable member” has the meaning given by paragraph 54(2) of Schedule 19. ^F35]

[^F37Repayments: large companies and very large companies^F37] _{cross-notesI3}

6.—(1) This regulation applies where a large company[^F38 or very large company^F38] —

(a)has paid an amount or amounts by way of instalments in respect of its total liability for an accounting period in accordance with [^F39these Regulations^F39] , and

(b)subsequently has grounds for believing that, by reason of a change in the circumstances of the company since the payment or payments were made—

(i)the amount of its total liability for that period is likely to be less than previously calculated, and

(ii) the aggregate amount so paid exceeds the aggregate amount (“the revised aggregate amount”) that would have been treated as becoming due and payable by the relevant date having regard to the revised calculation of that liability.

(2) The company may, by notice given to an officer of [^F40Revenue and Customs^F40] , make a claim to an officer of [^F40Revenue and Customs^F40] for the repayment of so much of the aggregate amount so paid as in the company’s view exceeds the revised aggregate amount.

(3) The notice under paragraph (2) must state—

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

(b)the grounds referred to in paragraph (1)(b).

(4) If the company has appealed against an amendment of an assessment, or an assessment, in respect of the amount of its total liability for the accounting period concerned, and the appeal has not been finally determined, it may apply to the [^F41tribunal^F41] to whom the appeal stands referred for a determination of the amount which should be repaid to the company pending determination of the amount of its total liability for that accounting period.

[^F42 (5) Any claim under paragraph (2) or application under paragraph (4) is to be subject to the relevant provisions of Part 5 of the Taxes Management Act 1970 (see, in particular, section 48(2)(b) of that Act).^F42]

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

(7) In paragraph (1)(b) “the relevant date” means the date on which a claim under paragraph (2) is made.

(8) Section 59DA of the Management Act (claim for repayment in advance of liability being established) shall not apply in any case where this regulation applies.

[^F43Allocation of payments

6A.—(1) This regulation applies where—

(a)an entity (E) is either—

(i)the relevant entity; or

(ii)the responsible member; and

(b)there has been an underpayment of E’s total liability for an applicable accounting period.

(2) Any payment made by E in respect of that applicable accounting period shall be treated—

(a)as a payment in respect of any amount of the bank levy which is unpaid for the applicable accounting period; and

(b)to the extent that the payment exceeds the unpaid amount of the bank levy, as a payment in respect of corporation tax other than the bank levy for the applicable accounting period.

(3) Whether there has been an underpayment of E’s total liability shall be ascertained in accordance with the provisions of Schedule 18.^F43]

[^F44Interest on unpaid amounts: large companies and very large companies^F44] _{cross-notesI4}

7.—(1) Section 87A(4) of the Management Act shall apply in relation to any unpaid amount in respect of the total liability of a large company[^F45 or a very large company^F45] for an accounting period, with the modifications specified in paragraphs (2) to (5).

(2) After subsection (1) there shall be inserted the following subsection—

“(1A) An amount or amounts treated as becoming due and payable in respect of the total liability of a large company [^F46or a very large company for an accounting period in accordance with^F46] the Corporation Tax (Instalment Payments) Regulations 1998 shall carry interest at the rate applicable under section 178 of the Finance Act 1989(5) from the date or dates specified in [^F47the regulation in question^F47] as the date or dates when that amount or those amounts are treated as becoming due and payable until payment.”

(3) In subsection (2)—

(a) for the words “Subsection (1) above applies” there shall be substituted “Subsections (1) and (1A) above apply”;

(b) for the words “that subsection” there shall be substituted “those subsections”.

(4) In subsection (3) there shall be added at the end the words “, and the reference in subsection (1A) above to the date or dates when an amount or amounts are treated as becoming due and payable in respect of the total liability of a large company[^F48 or a very large company^F48] for an accounting period is a reference to the date or dates when that amount or those amounts are treated as having become due and payable by the company”.

(5) After subsection (9) there shall be added—

“(10) In subsections (1A) and (3) above “large company” [^F49and “very large company” have the meanings given in^F49] the Corporation Tax (Instalment Payments) Regulations 1998.”

Interest on overpaid amounts of a company’s total liability for an accounting period_{cross-notesI5}

8.—(1) Section 826 of the Taxes Act(6) shall apply in relation to—

(a)an amount or amounts paid by a large company[^F50 or a very large company^F50] in accordance with [^F51these Regulations^F51] in respect of its total liability for an accounting period, and

(b)an amount or amounts paid by a company that is not a large company[^F52 or a very large company^F52] in an accounting period in respect of its total liability for that accounting period, where the payment is made prior to the day following the expiry of nine months from the end of that accounting period,

with the modifications specified in paragraphs (2) and (3).

(2) In subsection (1)—

(a)after paragraph (c) there shall be inserted

“or

[^F53(ca)^F53] the total amount paid by a large company [^F54or a very large company^F54] (as defined in ^F55... the Corporation Tax (Instalment Payment) Regulations 1998) up to a point in time in respect of its total liability for an accounting period in accordance with ^F56... those Regulations exceeds the amount that is treated as having become due and payable by the company for that period at that time in accordance with that regulation, or

[^F57(cb)^F57] an amount paid by a company that is not a large company [^F58or a very large company^F58] in an accounting period in respect of the amount of its total liability for that period is paid prior to the day following the expiry of nine months from the end of that period (“the normal due date”),;”

(b) for the words “the repayment or payment shall” there shall be substituted the words “or, in a case to which paragraph [^F59 (ca) ^F59] above applies, until the date on which the excess amount arising as mentioned in that paragraph is extinguished or, in a case to which paragraph [^F60 (cb) ^F60] above applies, until the normal due date, the repayment or payment or excess amount shall”.

(3) After subsection (3) there shall be inserted—

[^F61“(3ZA)^F61] In relation to an excess amount in respect of a company’s total liability arising as mentioned in subsection [^F62(1)(ca)^F62] above, the material date is the [^F63earliest date on which an^F63] instalment payment for the accounting period concerned is treated as becoming due as mentioned in ^F64... the Corporation Tax (Instalment Payments) Regulations 1998 or, if later, the date on which the excess amount arises.

[^F65(3ZB)^F65] In relation to a case falling within subsection [^F66(1)(cb)^F66] above—

(a)if the payment for the accounting period concerned was made on or before the date which, if the company had been a large company, would have been the date on which the first instalment payment for that accounting period would have been treated as becoming due as mentioned in regulation 5(3) [^F67or 5A(3)^F67] of the Regulations referred to in subsection [^F68(3ZA)^F68] above, the material date is that date, or

(b)if the payment for the accounting period concerned was made later than the date referred to in paragraph (a) above, the material date is the date on which that payment was made.”

[^F69Consequential amendment of Chapter 4 of Part 22 of CTA 2010 _cross-notes

9.—(1) Chapter 4 of Part 22 of CTA 2010 (surrender of tax refund within a group) applies with the modifications specified in paragraphs (2) to (5) in any case where a tax refund is due to be made to the surrendering company in respect of an amount paid in respect of its total liability for an accounting period and [^F70 the surrendering company or the recipient company (or both) is a large company or a very large company^F70]

^F71(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F71(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In section 963 (power to surrender tax refund), after subsection (2) insert—

“(2A) If, and to the extent that, the tax refund surrendered is within subsection (4)(c) and is of an amount paid in respect of the surrendering company’s bank levy liability for the accounting period, the requirement in subsection (2)(b) is to be read as a requirement that the surrendering company and the recipient company are both entities which are jointly and severally liable for the surrendering company’s bank levy liability for that period in accordance with paragraph 53 of Schedule 19 to the Finance Act 2011.

(2B) In subsection (2A) the reference to the surrendering company’s bank levy liability for the accounting period is to any liability within paragraph 53(8) of that Schedule which the company has for that accounting period.”.

(3) In subsection (4) of that section—

(a)omit the “or” at the end of paragraph (a); and

(b)after paragraph (b) insert—

“, or

(c)the repayment in whole or in part of any amount paid by way of an instalment under the Corporation Tax (Instalment Payments) Regulations 1998 in respect of the company’s total liability for the period (within the meaning of regulation 2(3)).”.

(4) In section 964 (effects of surrender of tax refund), in subsection (6), after “refund” insert “other than a refund of instalment corporation tax”.

(5) After that subsection insert—

“(6A) For the purpose of this Chapter “the relevant date”, in relation to a refund of instalment corporation tax, means—

(a)in so far as the refund falls to be treated in accordance with subsections (6C) to (6E) as consisting of a repayment of the whole or any part of a payment made on or before the earliest due date, that date, and

(b)in so far as the refund falls to be treated in accordance with those subsections as consisting of the repayment of the whole or any part of a payment made after the earliest due date, the date on which the payment was made.

(6B) For the purposes of subsection (6A), the earliest due date, in relation to a refund of instalment corporation tax, is—

(a)where the surrendering company is a large company [^F72or a very large company^F72] for the relevant accounting period, the earliest date on which any amount is treated as having become due and payable by that company under ^F73... the Corporation Tax (Instalment Payments) Regulations 1998 in respect of that company’s total liability for that period, and

(b)where the surrendering company is not a large company [^F74or a very large company^F74] for that accounting period, the date that would have been the earliest due date under paragraph (a) had it been a large company [^F74or a very large company^F74] for that period.

(6C) For the purposes of subsection (6A), at the same time as giving notice under section 963(2) in the case of any refund of instalment corporation tax relating to any accounting period, the surrendering company must also give notice to an officer of Revenue and Customs identifying the extent to which it requires the refund to be treated as consisting of amounts comprised in any payment or payments made for that period.

(6D) Where, in a case to which subsection (6C) applies, an officer of Revenue and Customs notifies the surrendering company that the amount of the refund of instalment corporation tax relating to the accounting period is less than the aggregate of the amounts identified under that subsection, the company must, no later than 30 days after the notification, give a revised notice under that subsection to the officer of Revenue and Customs.

(6E) Where in a case to which subsection (6D) applies—

(a)a notification has been given to the surrendering company under that subsection, and

(b)the surrendering company does not give a revised notice in accordance with the requirements of that subsection,

the same consequences follow as if a notice had not been given in accordance with section 963(2) in relation to the refund.

(6F) In this section—

(a)references to a refund of instalment corporation tax are references to any refund of tax for any accounting period which falls in relation to that accounting period within paragraph (c) of the definition of “tax refund” in section 963(4),

(b)“large company” [^F75and “very large company” have the meanings given in^F75] the Corporation Tax (Instalment Payments) Regulations 1998, and

(c)references to the total liability of a company for an accounting period are to be construed in accordance with regulation 2(3) of those Regulations.”.^F69]

[^F76Entity not liable to the bank levy

9A.—(1) This regulation applies where—

(a)a relevant entity (E) has made a payment for an accounting period which includes an amount in respect of the bank levy for the chargeable period; but

(b)another member of the relevant group (OM) is the responsible member for that chargeable period.

(2) Where this regulation applies—

(a)no repayment of the amount paid by E in respect of the bank levy shall be made to or be due to E;

(b)E shall not be entitled, as a result of the payment of the amount in respect of the bank levy, to set off or otherwise treat as discharged any liability to corporation tax or to any other tax or duty for any period;

(c)the amount of the payment made by E in respect of the bank levy for the chargeable period shall be treated as if it were a payment made by OM, on the date on which the payment was made by E; and

(d)if OM does not have an applicable accounting period which is the same as the chargeable period,

(i)the payment made by E shall be treated as a payment of an amount of the bank levy due and payable in respect of the earliest instalment payment in relation to the earliest applicable accounting period of OM for the chargeable period; and

(ii)the balance, if any, shall be treated as a payment of the bank levy due and payable in respect of OM’s next instalment payment in relation to the earliest applicable accounting period and so on in relation to that applicable accounting period and any subsequent applicable accounting period.

(3) In paragraph (2)(d) the reference to an applicable accounting period being the same as the chargeable period shall be construed in accordance with paragraph 54 of Schedule 19.^F76]

Information to be provided to [^F77HMRC^F77] _{cross-notesI6}

10.—(1)[^F78 HMRC^F78] may, at any time following the relevant date, by notice require any company to furnish them, within such time (not being less than thirty days) as may be provided by the notice—

(a)such information relating to the computation of any amount paid in respect of the company’s total liability for an accounting period in accordance with [^F79these Regulations^F79] as they may reasonably require for ascertaining whether the amount of the payment was consistent with the quality and quantity of the information available to the company, at the time the payment was due, regarding its total liability for that period;

(b)such information as they may reasonably require for ascertaining the reasons for non-payment by the company at any time in accordance with [^F80these Regulations^F80] of any amount in respect of the company’s total liability for an accounting period;

(c)such information as they may reasonably require for ascertaining whether a claim for repayment of an amount under regulation 6(2) was properly made.

(2) In paragraph (1) “the relevant date” means the date specified in paragraph 14(1) of Schedule 18 as the filing date for the company tax return for the accounting period concerned.

[[^F81,F82Additional information to be provided to HMRC : bank levy^F82]

10A. —(1) This regulation applies if the relevant entity or the responsible member (“E”) makes an instalment payment which includes an amount in respect of the bank levy.

(2) Subject to paragraph (4), E must provide written notice (a “quantification notice”) identifying the amount of the instalment payment which is in respect of the bank levy.

(3) A quantification notice must be given to an officer of Revenue and Customs on or before the date on which payment is made.

(4) Where E is a member of a group payment arrangement under section 59F of the Management Act (arrangements for paying tax on behalf of group members), but E is not the member which is responsible for discharging the liability of the group under that arrangement—

(a)E shall provide the quantification notice to the member (M) which, in accordance with the group payment arrangement, is responsible for discharging the liability of all the members of the group; and

(b)accordingly M shall be responsible for providing the quantification notice to the officer of Revenue and Customs as required by paragraphs (2) and (3) and for the purposes of paragraph (5).

(5) The requirement to provide a quantification notice under this regulation shall be treated as a requirement to comply with an information notice for the purposes of Part 7 of Schedule 36 to the Finance Act 2008 (information and inspection powers).^F81]

Production of records_{cross-notesI7}

11.—(1)[^F83 HMRC^F83] may, at any time following the relevant date, by notice require a company to produce, within such time (not being less than thirty days) as may be provided by the notice—

(a)all such books, documents and other records in its possession or power relating to the computation of any amount paid in respect of the company’s total liability for an accounting period in accordance with [^F84these Regulations^F84] as they may reasonably require for ascertaining whether the amount of the payment was consistent with the quality and quantity of the information available to the company, at the time the payment was due, regarding its total liability for that period;

(b)all such books, documents and other records in its possession or power as they may reasonably require for ascertaining the reasons for non-payment by the company at any time in accordance with [^F85these Regulations^F85] of any amount in respect of the company’s total liability for an accounting period;

(c)all such books, documents and other records in its possession or power as they may reasonably require for ascertaining whether a claim for repayment of an amount under regulation 6(2) was properly made.

(2) In complying with a notice under paragraph (1) copies of books, documents and other records may be produced instead of originals, but—

(a)the copies must be photographic or other facsimiles, and

(b)an officer of [^F86Revenue and Customs^F86] may require the original to be made available for inspection in accordance with regulation 12.

(3) In paragraph (1) “the relevant date” has the same meaning as in regulation 10.

Inspection of records_I8

^F8912.—(1) An officer [^F87of Revenue and Customs^F87] authorised to do so may, at any time following the relevant date, [^F88by notice^F88] require a company to make available for inspection, at such time as that officer may reasonably require, all such books, documents and other records in its possession or power as could be required to be produced by notice ... under regulation 11.

(2) Where records are maintained by computer the officer making the inspection shall be provided by the company with all the facilities necessary for obtaining information from them.

(3) In paragraph (1) “the relevant date” has the same meaning as in regulation 10.

Penalty for unpaid tax_{cross-notesI9}

13. The circumstances prescribed for the purposes of section 59E(4) of the Management Act (penalty not exceeding twice the amount of interest charged by virtue of regulation 7 on any unpaid amount in respect of the total liability of a company for an accounting period) are where—

(a)the company, or a person acting on its behalf, deliberately or recklessly fails to pay the amount in question in accordance with [^F90these Regulations^F90] ;

(b)the company, or a person acting on its behalf, fraudulently or negligently makes a claim for repayment of an amount under regulation 6(2).

Anti-avoidance provision

^F9114. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Insurance companies and friendly societies—supplementary provision

^F9215. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .