Finance Act, 1982

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Payment of corporation tax an interest thereon.

27.—(1) Section 6 (4) of the Corporation Tax Act, 1976 , is hereby amended as respects accounting periods ending on or after the 6th day of April, 1981—

(a) in subparagraph (i) of paragraph (a), by the substitution of “six” for “nine”,

(b) in subparagraph (ii) of paragraph (a), by the substitution of “nine” for “twelve” (inserted by the Finance Act, 1981 ),

(c) in subparagraph (ii) of paragraph (b), by the substitution of “six” for “three” (inserted by the Finance Act, 1981 ), and

(d) in the proviso to paragraph (b), by the substitution of “six” for “nine”,

and the said subparagraphs and the said proviso, as so amended, are set out in the Table to this subsection.

TABLE

(i) the first instalment within six months from the end of the accounting period or, if it is later, within two months from the making of the assessment; and

(ii) the second instalment within nine months from the end of the accounting period or, if it is later, within two months from the making of the assessment.

(ii) in respect of any subsequent accounting period, within such an interval from the end of that accounting period as is six months less than the interval between the end of the first accounting period for which the company was within the charge to corporation tax and the date on or before which the second instalment of corporation tax for that first accounting period would have become payable if the assessment for that accounting period had been made on the day immediately following the end of that accounting period:

Provided that in no case shall the second instalment of corporation tax assessed for an accounting period become payable before the expiration of six months from the end of the accounting period for which it is assessed or before the expiration of two months from the making of the assessment.

(2) If subsection (1) would, but for this subsection, have effect so as to require that the first or second instalment of corporation tax assessed for an accounting period which, apart from subsection (1), would fall to be paid within a period ending on or after the date of the passing of this Act, should fall to be paid within a period ending on a date earlier than the date of such passing, that instalment shall, notwithstanding subsection (1), fall to be paid within a period ending on the date of such passing.

(3) Subsection (1) shall not have effect in relation to the first or second instalment of corporation tax assessed for an accounting period which, apart from that subsection, would fall to be paid within a period ending before the date of the passing of this Act.

(4) (a) Section 550 of the Income Tax Act, 1967 , shall, in so far as it applies for the purposes of corporation tax, by virtue of section 145 (3) of the Corporation Tax Act, 1976 , have effect as if in subsection (2) “one month” were substituted for “two months” (inserted by the Finance Act, 1971 ).

(b) Paragraph (a) shall not apply as respects interest on corporation tax charged by an assessment made before the date of the passing of this Act.