Taxes Management Act 1970 section 7

Content of CT payment plan

Section 7 of Schedule 3ZC sets out the information that must be included in a corporation tax payment plan when a company enters into one to defer tax arising from qualifying transactions with EEA-resident transferees.

• The plan must specify the relevant accounting period, the company's view of its qualifying corporation tax liability for that period, and the amount of deferred tax.
• Each qualifying transaction that gave rise to gains or credits in the accounting period must be individually identified in the plan.
• For every qualifying transaction listed, the plan must name the transferee, state the EEA country in which the transferee was resident at the time of the transaction, and show how much of the deferred tax relates to that transaction.
• The deferred tax attributable to each qualifying transaction is calculated by taking that transaction's gain or credit as a proportion of total gains or credits from all qualifying transactions, and multiplying by the total deferred tax.