Corporation Tax Act 2009 section 142

Interest on overdue corporation tax etc.

Section 142 preserves existing rules that prevent companies from claiming a tax deduction for interest charged on late payment of certain corporation tax liabilities, despite the repeal of an earlier legislative provision.

• The repeal of section 90(1)(b) of the Taxes Management Act 1970 by the Corporation Tax Act 2009 does not disturb the long-standing rules denying deductions for interest on overdue tax.
• No deduction is allowed when calculating profits for corporation tax purposes for interest on overdue tax relating to accounting periods ending before 1 October 1993.
• No deduction is allowed for interest on overdue advance corporation tax, income tax on company payments, or overdue corporation tax for accounting periods ending before 1 July 1999.
• The restriction also covers tax assessable under the collection provisions of Schedules 13 and 16 of the Income and Corporation Taxes Act 1988 for return periods falling in accounting periods ending before 1 July 1999.