RPDT30100 - Administration of RPDT: RPDT as an amount of CT - section 45 Finance Act 2022

To make use of an existing administrative framework that customers are familiar with, RPDT is treated as an amount of CT for collection and management purposes. This means that existing rules governing CT administration apply equally to RPDT as they do to CT, including:

  • returns
  • payments
  • enquiries
  • assessments
  • information powers
  • penalties
  • interest
  • appeals

The relevant legislation (such as FA98/SCH18 and TMA70) should be applied to RPDT as it is to CT, subject to any necessary modifications.

The Corporation Tax rules for companies that conduct business through a partnership apply for RPDT purposes, broadly this means that a company member is liable to its share of the RPDT trading profits of partnership as computed on CT principles. This applies to ordinary, limited and limited liability partnerships. The CT partnership rules are in CTA09/Part 17 with guidance at CTM36500 onwards.

Transfer Pricing rules apply to RPDT by virtue of FA22/SCH9/PARAS3&4. The General Anti-Abuse Rule (GAAR) and the FA22 provisions concerning Uncertain Tax Treatment are examples of enactments that apply generally to CT and so are also applicable to RPDT.

The main charging provision in FA22/S33(1) makes clear that RPDT is charged ‘as if it were an amount of Corporation Tax’ and this is extended by FA22/S45(1), which ensures that any enactments applying generally to CT also apply for RPDT. There is a specific exclusion in FA22/S45(5) that prevents RPDT from being treated as an amount of CT for the purposes of regulations concerning unrelieved surplus advanced CT.

FA22/SCH8/PARA1 makes consequential amendments to TMA70/S59E(11) and TMA70/S59F(6). These amendments ensure RPDT is included within the provisions for quarterly instalment payments and group payment arrangements. As a result, a company with an RPDT liability will make payments in line with its existing arrangements for CT.

FA22/SCH8/PARA2 makes consequential amendments to FA98/SCH18, to include references to RPDT within the core provisions for CT administration where necessary.

RPDT01100 contains a general introduction to RPDT and a list of abbreviations used.