Finance Act, 1990

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Payment of tax.

24.—As respects the year 1990-91 and subsequent years of assessment and as respects accounting periods ending on or after the 6th day of April, 1990—

(a) section 477 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended, in subsection (1)—

(i) by the substitution of “1st day of November” for “1st day of October”, in both places where it occurs, and

(ii) by the substitution of “not later than one month from the date” for “on the day next after the day”,

(b) section 550 (2) of the Income Tax Act, 1967 , and section 27 (4) of the Finance Act, 1982 , shall cease to have effect,

(c) section 6 (as amended by the Finance Act, 1985 ) of the Corporation Tax Act, 1976 , is hereby amended by the substitution, in subsection (4), of “seven months” for “six months”, and of “one month” for “two months”, and

(d) section 18 of the Finance Act, 1988 , is hereby amended—

(i) by the substitution, in subsection (1), of “1st day of November” for “1st day of October”, in both places where it occurs, and of “7 months” for “6 months”, in both places where it occurs,

(ii) by the substitution of the following paragraph for paragraph (b) of subsection (2):

“(b) where the assessment is made on or after that date—

(i) if the chargeable period is a year of assessment, on or before the specified return date for the chargeable period or, if later, not later than one month from the date on which the assessment is made, and

(ii) if the chargeable period is an accounting period of a company, not later than one month from the date on which the assessment is made.”,

(iii) by the substitution of the following subsection for subsection (3):

“(3) Where, but for this subsection, tax specified in an assessment made on a chargeable person for a relevant chargeable period would be due and payable in accordance with subsection (2) (b) and—

(a) the chargeable person has defaulted in the payment of preliminary tax for that chargeable period,

(b) the preliminary tax paid by the chargeable person for the chargeable period is less than, or less than the lower of, as the case may be—

(i) 90 per cent. of the tax payable by the chargeable person for the chargeable period, or

(ii) in the case of a chargeable person who is chargeable to income tax for the said chargeable period being a year of assessment, the tax payable for the immediately preceding chargeable period:

Provided that for the purposes of this subparagraph—

(I) where the chargeable person was not a chargeable person for the immediately preceding chargeable period, the tax payable for the immediately preceding chargeable period shall be taken to be nil, and

(II) where, after the due date for the payment of an amount of preliminary tax for a chargeable period which is a year of assessment, an amount of additional tax for the immediately preceding chargeable period becomes payable, that additional tax shall not be taken into account if, but only if, it became due and payable one month following the amendment to the assessment or the determination of the appeal, as the case may be, by virtue of the provisos (as amended by section 24 of the Finance Act, 1990) to subsection (4) or (5),

or

(c) the preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable,

the tax specified in the assessment shall be deemed to have been due and payable on the due date for the payment of an amount of preliminary tax for the chargeable period.”,

(iv) by the substitution, in the proviso to subsection (4), of “not later than one month from the date of the amendment” for “on the day immediately following the date of the amendment”, and

(v) by the substitution, in the proviso to subsection (5), of “not later than one month from the date of the determination of the appeal” for “on the date of the determination of the appeal”,

and the said subsection (1) of the said section 477, the said subsection (4) of the said section 6, the said subsection (1) and the provisos to subsections (4) and (5) of the said section 18, as so amended, are set out, respectively, in the Table to this section.

TABLE

(1) Subject to the provisions of this section, tax contained in an assessment for any year of assessment shall be payable on or before the 1st day of November in that year, except that tax included in an assessment for any year of assessment which is made on or after the 1st day of November in that year shall be deemed to be due and payable not later than one month from the date on which the assessment is made.

(4) Corporation tax assessed for an accounting period shall be paid within seven months from the end of the accounting period or, if it is later, within one month of the making of the assessment.

(1) Preliminary tax appropriate to a relevant chargeable period shall be due and payable—

(a) where the chargeable period is a year of assessment, on or before the 1st day of November in that year of assessment, or

(b) where the chargeable period is an accounting period of a company, within the period of 7 months from the end of the accounting period,

and references in this Chapter to the due date for the payment of an amount of preliminary tax shall be construed as references to the 1st day of November in the relevant year of assessment or the last day of that period of 7 months, as the case may be.

Provided that if—

(a) the assessment was made after the chargeable person had delivered a return containing a full and true disclosure of all material facts necessary for the making of the assessment, or

(b) the assessment had previously been amended following the delivery of the return containing such disclosure,

the additional tax so due shall be deemed to have been due and payable not later than one month from the date of the amendment.

Provided that—

(a) where the tax which the chargeable person had so paid is not less than 90 per cent. of the tax so found to be payable on the determination of the appeal, and

(b) where the tax charged by the assessment was due and payable in accordance with the provisions of subsection (2),

the said excess shall be deemed to be due and payable not later than one month from the date of the determination of the appeal.