Taxes Management Act 1970 Schedule 3ZB paragraph 9

Effect of CT exit charge payment plan

Section 9 of Schedule 3ZB explains the practical consequences once a company has entered into a CT exit charge payment plan, covering how and when HMRC can collect the tax, how interest accrues, when late payment penalties apply, and the option to make early payments.

• The tax still becomes legally due and payable on its normal due date, but HMRC can only collect it in line with the agreed payment plan and may refund any amounts already paid before the plan was set up.
• Interest continues to accrue on the outstanding tax as though no payment plan existed, and each instalment paid under the plan must include any interest due on it at that point.
• Late payment penalties will only arise if the company fails to make payments in accordance with the plan — simply having tax outstanding under an active plan does not trigger penalties.
• The company may pay off any unpaid balance early, at any time before it falls due under the plan, provided it also pays the interest accrued up to the date of that early payment.