Taxes Management Act 1970 section 59E

Further provision as to when corporation tax is due and payable

Section 59E gives the Treasury broad powers to make regulations requiring certain companies to pay their corporation tax in instalments before the normal due date, and to set out detailed rules governing those early payments.

• The Treasury may require prescribed descriptions of companies to pay corporation tax on dates earlier than the normal due date, including dates falling within the accounting period itself.
• Regulations may cover how instalment amounts and payment dates are determined, the charging and repayment of interest, record-keeping obligations, information requirements, and appeals.
• Where interest is charged on instalment amounts that prove to be incorrect, the company may face a penalty of up to twice the amount of that interest.
• References to corporation tax in this section extend to several additional charges, including loans to participators, controlled foreign company charges, the banking surcharge, the supplementary charge on ring-fence trades, the bank levy, residential property developer tax, the energy profits levy, and the electricity generator levy.