Corporation Tax Act 2010 section 263

Application for postponement of tax pending appeal

Section 263 prevents a company from seeking to postpone payment of tax pending an appeal on the basis of eligibility for community investment tax relief (CITR) unless a formal claim for that relief has already been made.

• A company cannot apply to postpone tax payments pending an appeal simply by arguing it is eligible for CITR.
• The company must have already submitted a formal claim for CITR under the relevant part of the Corporation Tax Act 2010.
• This rule applies to postponement applications made under section 55(3) or (4) of the Taxes Management Act 1970.
• The provision ensures that only companies which have taken the positive step of claiming CITR can rely on it as grounds for deferring tax.