Finance (No. 2) Act 2017

Accelerated payments

19 (1) Paragraph 20(1) applies where—

(a) section 23E of ITTOIA 2005 would (ignoring paragraph 20) apply in relation to a relevant benefit arising to T,

(b) the relevant benefit is a loan or quasi-loan in relation to which paragraph 1(2) applies,

(c) an accelerated payment notice, or a partner payment notice, relating to a relevant charge (the “accelerated payment notice”) has been given under Chapter 3 of Part 4 of FA 2014,

(d) T makes a payment (the “accelerated payment”) in respect of the understated or disputed tax to which the notice relates,

(e) the accelerated payment is made on or before the relevant date, and

(f) the amount of the loan or quasi-loan that, at the end of the relevant date, is outstanding for the purposes of paragraph 1 (see paragraphs 3 to 14) is equal to or less than the amount of the accelerated payment.

(2) In sub-paragraph (1)(c), “relevant charge” means a charge to tax under section 23E of ITTOIA 2005 arising by reason of a relevant benefit which arises to T in pursuance of the relevant arrangement in pursuance of which the relevant benefit mentioned in sub-paragraph (1)(a) and (b) arises.

(3) In sub-paragraph (1)(e) and (f), “the relevant date” means—

(a) the approved repayment date, if the relevant benefit is an approved fixed term loan on 5 April 2019, or

(b) 5 April 2019, in any other case.