What does Schedule 3ZC paragraph 1 of the Taxes Management Act 1970 do?

Schedule 3ZC paragraph 1 introduces the schedule that enables companies liable to pay qualifying corporation tax for an accounting period to defer payment by entering into a CT payment plan. It sets the scene for the detailed rules governing how these payment plans operate, including eligibility and terms.

What is a CT payment plan under Schedule 3ZC?

A CT payment plan is a formal arrangement allowing a company to spread its corporation tax liability over a period of time rather than paying the full amount immediately by the normal due date. The remainder of Schedule 3ZC sets out detailed rules on eligibility, terms, and conditions governing these plans.

Which companies can use a CT payment plan to defer corporation tax?

Companies that are liable to pay qualifying corporation tax for an accounting period may use a CT payment plan. For example, a company with a £50,000 corporation tax liability could enter into a plan to spread payment over agreed instalments instead of settling the full amount on the normal due date.

When was the CT payment plan provision introduced into UK law?

The CT payment plan provision in Schedule 3ZC of the Taxes Management Act 1970 was introduced by Finance Act 2020, Schedule 7, paragraph 2. It created a statutory mechanism for companies to defer qualifying corporation tax payments through a structured instalment arrangement under United Kingdom tax law.

Taxes Management Act 1970 section Sch 3ZC para 1

Introduction

Schedule 3ZC paragraph 1 introduces the schedule, which enables companies liable to pay qualifying corporation tax to defer payment by entering into a CT payment plan.

This schedule provides a mechanism for companies to defer corporation tax payments
It applies to companies liable to pay qualifying corporation tax for an accounting period
Deferral is achieved by the company entering into a CT payment plan
The provision was introduced by Finance Act 2020, Schedule 7, paragraph 2

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