Taxes Consolidation Act 1997 section 959AS

Date for payment of corporation tax: companies with relevant accounting periods

Section 959AS sets out the corporation tax payment dates for companies other than small companies, requiring preliminary tax to be paid in two instalments and providing rules for determining whether those payments are adequate.

• Preliminary tax is payable in two instalments: the initial instalment (due by the 21st/23rd of the sixth month) and the final instalment (due by the 21st/23rd of the month preceding the last month of the accounting period).
• The initial instalment must be at least 45% of the current year liability (or 50% of the prior year liability) and the aggregate of both instalments must be at least 90% of the current year liability; failure to meet these thresholds triggers deemed due dates for interest purposes.
• If the shortfall in the initial or final instalment arises because of a capital gain or financial asset revaluation occurring after the relevant payment date, the company may still be treated as having met its obligations provided sufficient top-up payments are made.
• For accounting periods commencing on or after 1 January 2022 and ending on or before 31 December 2027, a company that falls short of the 90% test solely because of a disallowable amount under the interest limitation rules may make a top-up payment within six months of the end of the accounting period.