Finance Act 1993

Section 120.

SCHEDULE 14U.K. Pay and file: miscellaneous amendments

Failure to give notice of liability for corporation taxU.K.

F11U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Further claims etc. where assessment madeU.K.

F22U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest on overdue corporation tax: transitional casesU.K.

3(1)Section 86 of that Act of 1970 (interest on overdue tax) shall be amended as follows.U.K.

(2)In subsection (3)(b), for “subject to subsection (3A)” there shall be substituted “ subject to subsections (3A) and (4A) ”.

(3)In subsection (3A), at the beginning there shall be inserted “ Subject to subsection (4A) below, ”.

(4)After subsection (4) there shall be inserted the following subsections—

“(4A)For the purposes of this section where—

(a)a notice served under section 11 above at any time after the appointed day for the purposes of section 82 of the M1Finance (No. 2) Act 1987 (amendment of section 11 for the purposes of pay and file) is to be taken as requiring a company to make a return for any accounting period ending on or before the day appointed for the purposes of section 10 of the principal Act; and

(b)the tax charged by any assessment to corporation tax for that accounting period does not become due and payable until after the date nine months from the end of that accounting period,

the reckonable date, in relation to tax charged for that accounting period by that assessment, is the date mentioned in paragraph (b) above (instead of the date which would otherwise be determined under subsection (3) or (3A) above).

(4B)The Board may at their discretion mitigate (whether before or after judgment) any interest due under this section in a case where the reckonable date is determined under subsection (4A) above and may stay or compound any proceedings for the recovery thereof.”

Interest on overdue corporation tax: pay and file casesU.K.

4F3(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

(2)For subsection (6) of that section there shall be substituted the following subsections—

“(6)In any case where—

(a)on a claim under section 393A(1) of the principal Act, the whole or any part of a loss incurred in an accounting period (“the later period”) has been set off for the purposes of corporation tax against profits of a preceding accounting period (“the earlier period”);

(b)the earlier period does not fall wholly within the period of twelve months immediately preceding the later period; and

(c)if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,

then, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable as mentioned in subsection (1) above.

(7)Where, in a case falling within subsection (6)(a) and (b) above—

(a)there is in the earlier period, as a result of the claim under section 393A(1) of the principal Act, an amount of surplus advance corporation tax, as defined in subsection (3) of section 239 of that Act; and

(b)pursuant to a claim under the said subsection (3), the whole or any part of that amount is to be treated for the purposes of the said section 239 as discharging liability for an amount of corporation tax for an accounting period before the earlier period,

the claim under the said subsection (3) shall be disregarded for the purposes of subsection (6) above but subsection (4) above shall have effect in relation to that claim as if the reference in the words after paragraph (c) to the later period within the meaning of subsection (4) above were a reference to the period which, in relation to the claim under the said section 393A(1), would be the later period for the purposes of subsection (6) above.”

Effect on interest of reliefsU.K.

5U.K.In section 91(1B) of that Act of 1970 (subsection (1A) subject to section 87A(4)), after “section 87A(4)” there shall be inserted “ (6) and (7) ”.

Failure to make return for corporation taxU.K.

F46U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Things to be done by companiesU.K.

7U.K.In section 108(1) of that Act of 1970 (which includes provision requiring companies to act for the purposes of the Taxes Acts through their proper officers), after “proper officer of the company” there shall be inserted “ or, except where a liquidator has been appointed for the company, through such other person as may for the time being have the express, implied or apparent authority of the company to act on its behalf for the purpose ”.

Relief under section 393 of the Taxes Act 1988U.K.

8(1)In relation to any case in which by virtue of section 99 of the M2Finance Act 1990 losses may be set off under subsection (1) of section 393 or of section 396 of the Taxes Act 1988 without the making of a claim, the Taxes Act 1988 shall have effect with the following amendments.U.K.

F5(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)In section 398 (transactions in deposits), for the words from “he may” onwards there shall be substituted “ the amount of his loss may be set off in pursuance of a claim under section 392 or, as the case may be, against which the amount of his loss may be set off under section 396 ”.

F7(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F89U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest on tax overpaidU.K.

10F9(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

(2)In subsection (7A) of that section, for “any increase in the amount of that repayment” there shall be substituted “ so much of the amount of that repayment as falls to be made ”.

F9(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)In subsection (7B) of that section, for “any increase in the amount of that payment” there shall be substituted “ so much of the amount of that payment as falls to be made ”.

F9(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Surrender of refundsU.K.

F1011U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .