Part 3

Income tax, corporation tax and capital gains tax
Chapter 2

Other provisions

Supplementary charge in respect of ring fence trades

Assessment, recovery and postponement of supplementary charge
92
1
After section 501A of the Taxes Act 1988 insert—

Assessment, recovery and postponement of supplementary charge
501B
1
Subject to subsection (3) below, the provisions of section 501A(1) relating to the charging of a sum as if it were an amount of corporation tax shall be taken as applying, subject to the provisions of the Taxes Acts, and to any necessary modifications, all enactments applying generally to corporation tax, including—
a
those relating to returns of information and the supply of accounts, statements and reports;
b
those relating to the assessing, collecting and receiving of corporation tax;
c
those conferring or regulating a right of appeal; and
d
those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.
2
Accordingly (but without prejudice to subsection (1) above) the Management Act shall have effect as if any reference to corporation tax included a reference to a sum chargeable under section 501A(1) as if it were an amount of corporation tax.
3
In any regulations made under section 32 of the Finance Act 1998 (as at 17th April 2002, the Corporation Tax (Treatment of Unrelieved Surplus Advance Corporation Tax) Regulations 1999)—
a
references to corporation tax do not include a reference to a sum chargeable on a company under section 501A(1) as if it were corporation tax; and
b
references to profits charged to corporation tax do not include a reference to adjusted ring fence profits, within the meaning of section 501A(1).
4
In this section “the Taxes Acts” has the same meaning as in the Management Act.
.
2
In section 59E of the Taxes Management Act 1970 (c. 9) (further provision as to when corporation tax is due and payable) in subsection (11) (extension of references in the section to corporation tax) after paragraph (b) add—
c
to any sum chargeable on a company under section 501A(1) of the principal Act (supplementary charge in respect of ring fence trades) as if it were an amount of corporation tax chargeable on the company
.
3
In Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns: assessments and related matters) in paragraph 1 (meaning of “tax”) in the second sentence (amounts assessable or chargeable as if they were corporation tax) for the word “and” immediately preceding the paragraph beginning “section 747(4)(a)” substitute the following paragraph—
section 501A(1) of that Act (supplementary charge in respect of ring fence trades), and
.
4
In paragraph 8 of that Schedule (calculation of tax payable) after paragraph number 1 of the third step insert—
1A
Any sum chargeable under section 501A(1) of that Act (supplementary charge in respect of ring fence trades).
.
5
Regulation 3 of the Instalment Payment Regulations (large companies) is amended as follows.
6
In paragraph (1) (which, subject to paragraphs (2) and (3), defines a large company) for “paragraphs (2) and (3),” substitute “paragraphs (2) to (3A),”.
7
After paragraph (3) insert—
3A
Any question whether a company is, or is not, a large company as respects an accounting period beginning on or after 17th April 2002 shall, so far as not falling to be determined by reference to the company’s total liability, be determined as it would have been determined apart from section 501A of the Taxes Act (supplementary charge in respect of ring fence trades).
.
8
The amendment by this section of any provision contained in regulations shall not be taken to have prejudiced any power to make further regulations revoking or amending that provision, whether in relation to the same or any other chargeable periods.
9
In this section “the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175).