Taxes Management Act 1970 section Schedule 3ZC paragraph 6

Entering into a CT payment plan

Section Schedule 3ZC paragraph 6 sets out the conditions that must be met for a company to enter into a corporation tax payment plan for deferred tax arising from qualifying transactions with EEA residents, including requirements around agreement, interest, security, and disclosure.

• A CT payment plan is formed when the company and an HMRC officer mutually agree to the payment of deferred tax by instalments, the company agrees to pay interest on the deferred tax, and the plan meets prescribed content requirements.
• Where HMRC considers there is a serious risk to tax collection without it, the plan may include provisions requiring the company to provide security for payment of the deferred tax.
• The plan is automatically void if the company has not fully and accurately disclosed all facts and considerations material to HMRC's decision to accept payment under the plan.
• The obligation of full disclosure places the responsibility firmly on the company to ensure that all information provided in connection with the plan is complete and accurate.