Corporation tax: Statutory Provisions for Payment by Instalment
- S281 TCGA 1992 - consideration on a disposal payable by instalments
- S34(8) ICTA 1988 - lease premiums payable in instalments.
Where a compliance officer has agreed that the statutory provisions can apply and determined the amount that will be payable in instalments, the clerical interest indicator must be set and the matter referred for LA.
The compliance officer should arrange for the sums that will be paid in subsequent instalments to be informally stood over on COTAX (if this is not done Debt Management staff should liaise with the compliance office to arrange for any instalments not yet due to be informally stood over).
At the BF date the amount stood over should be amended to reflect the next instalment becoming due and the next B/F date updated.
The guidance for the compliance officer can be found in the COTAX manual business area Payments: Time to Pay.
Debt Management staff should follow normal collection procedures for any instalment that is not paid by the due date.