EIM46090 - Section 554Z11D: provisional payments of tax

ITEPA 2003 – section 554Z11D

In order to take advantage of the double taxation provisions in sections 554Z11B and 554Z11C, it is necessary to make a payment of tax. Section 554Z11D confirms that where a provisional payment of tax is made, this will not count as a payment of tax.

Provisional payments of tax are defined in section 554Z11D(3) as:

• a payment on account of Income Tax
• a payment treated as a payment on account under provisions relating to accelerated payments
• a payment made pending determination of an appeal made in accordance with section 55 TMA 1970

It provides that such a payment can be treated as a payment if an application has been made to HMRC under section 554Z11E for such treatment – please read section 554Z11E – application to have payment treated as paid amount.

The reference to payments on account does not include any earlier charge paid amounts, Chapter 2 paid amounts or Chapter 2 aggregate paid amounts which are also treated as payments on account of earlier charges or Chapter 2 overlap charges under section 554Z11C.