Taxes Management Act 1970 Schedule 3ZB paragraph 8

Entering into a CT exit charge payment plan

Schedule 3ZB paragraph 8 sets out the conditions a company must meet to enter into a corporation tax exit charge payment plan, the circumstances in which HMRC may require security, and the consequences of providing inaccurate information.

• A company enters into a CT exit charge payment plan by agreeing with HMRC to pay the qualifying corporation tax in instalments, to pay interest on the tax, and to include all required details in the plan.
• Where an HMRC officer considers that accepting deferred payment under the plan would pose a serious risk to tax collection, the plan may include provisions requiring the company to provide security to HMRC.
• The payment plan is automatically void if the company fails to fully and accurately disclose all facts and considerations that are material to the HMRC officer's decision to accept the plan.
• These rules apply to both Part 1 companies and Part 2 companies that have qualifying corporation tax liabilities arising from exit charges.