Corporation Tax Act 2010 section 357YT

Amounts taxed at restitution payments rate to be outside instalment payments regime

Section 357YT provides that corporation tax charged at the restitution payments rate is excluded from the quarterly instalment payments regime, and must instead be paid separately outside that regime.

• Corporation tax charged at the restitution payments rate is disregarded when calculating instalment payment obligations.
• This exclusion applies for the purposes of regulations made under section 59E of the Taxes Management Act 1970, which govern when corporation tax is due and payable.
• The effect is that tax at the restitution payments rate does not count towards the total corporation tax liability used to determine whether a company must pay by quarterly instalments, or how much each instalment should be.
• Any tax charged at the restitution payments rate is dealt with separately from the normal instalment payments process.