{
  "url": "https://openlegislation.uk/corporation-tax-instalment-payments-amendment-regulations-2011/note",
  "json_url": "https://openlegislation.uk/corporation-tax-instalment-payments-amendment-regulations-2011/note.json",
  "legislation": "uksi/2011/1785",
  "legislation_title": "The Corporation Tax (Instalment Payments) (Amendment) Regulations 2011",
  "legislation_url": "https://openlegislation.uk/corporation-tax-instalment-payments-amendment-regulations-2011",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations amend the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175) (“the principal Regulations”) following the introduction of the bank levy by section 73 of, and Schedule 19 to, the Finance Act 2011 (c. 11) (“Schedule 19”). The principal Regulations provide that a large company’s liability to corporation tax for an accounting period is due and payable in instalments on the dates calculated in accordance with regulation 5(3) of those Regulations. These Regulations ensure that the principal Regulations apply to the bank levy, so that companies responsible for paying the bank levy are required to make payments by way of instalments. These Regulations also amend the principal Regulations to reflect the re-writing of the Income and Corporation Taxes Act 1988 (c. 1) (“ICTA”) by the Corporation Tax Act 2010 (c. 4).\nRegulation 1 deals with citation, commencement and effect. These Regulations will come into force on 11th August 2011 and will have effect in relation to accounting periods ending on or after 1st January 2011. The power to make regulations with retrospective effect is contained in section 59E(8) of the Taxes Management Act 1970 (c. 9) (as amended by paragraph 58 of Schedule 19) and in paragraph 65 of Schedule 19.\nRegulation 3 substitutes a new regulation 2 of the principal Regulations which defines the terms used in those Regulations.\nRegulation 4 amends regulation 3 of the principal Regulations. The amendment ensures any company responsible for paying bank levy is a “large company” for the purposes of the principal Regulations. Regulation 4 also updates the statutory references in regulation 3 of the principal Regulations to reflect the re-writing of ICTA.\nRegulation 5 inserts new regulations 4A to 4D into the principal Regulations. These new regulations contain transitional provisions dealing with the payment of the bank levy in relation to applicable accounting periods which have ended before, or which straddle, the date of coming into force of Schedule 19.\nRegulation 6 amends regulation 5A of the principal Regulations to reflect the re-writing of ICTA.\nRegulation 7 inserts new regulation 5B into the principal Regulations. New regulation 5B contains an anti-avoidance provision which prevents changes to the start and end dates of an accounting period of a chargeable member (as defined in regulation 7 of these Regulations) or chargeable members in conjunction with each other, having the effect of making no entity responsible for paying bank levy. The provision applies to changes made on or after 31st March 2011 in cases where the changes are designed to secure a tax advantage.\nRegulation 8 makes a consequential amendment to regulation 6 of the principal Regulations which deals with the situation where there has been an overpayment. Regulation 8 also makes consequential amendments to reflect the Commissioners for Revenue and Customs Act 2005 (c. 11) (“CRCA”).\nRegulation 9 inserts new regulation 6A into the principal Regulations. New regulation 6A applies where there has been an underpayment of the total liability in cases where the total liability includes liability to the bank levy. It specifies that any payments are treated as discharging liability to bank levy first and then as discharging liability to corporation tax.\nRegulation 10 makes a consequential amendment to regulation 7 of the principal Regulations which deals with the case where an instalment payment is not paid on the due date.\nRegulation 11 makes consequential amendments to regulation 8 of the principal Regulations which provides for the payment of interest where there has been an overpayment of a company’s total liability.\nRegulation 12 substitutes a new regulation 9 of the principal Regulations to make provision for the surrender of repayments of the bank levy and to update the statutory references to reflect the re-writing of ICTA.\nRegulation 13 inserts new regulation 9A into the principal Regulations. New regulation 9A deals with the case where an entity (E) has made payments in respect of the bank levy but another entity (OM) is the entity responsible for paying the bank levy. New regulation 9A is a step in shoes provision and provides that the payment by E is to be treated as though it had been a payment by OM and that the payment is not repayable to E.\nRegulation 14 makes consequential amendments to regulation 10 of the principal Regulations as a consequence of CRCA.\nRegulation 15 inserts new regulation 10A into the principal Regulations. New regulation 10A requires a company, upon making an instalment payment which includes a sum in respect of the bank levy, to notify an officer of HMRC as to the quantum of the payment in respect of the bank levy and ensures that penalties for non-compliance may be imposed under Part 7 of Schedule 36 to the Finance Act 2008 (c. 9).\nRegulations 16 and 17 make consequential amendments to regulations 11 and 12 of the principal Regulations as a consequence of CRCA.\nRegulation 18 makes consequential amendments to regulation 13 of the principal Regulations which identifies the circumstances prescribed for the purposes of section 59E of the Management Act.\nRegulation 19 repeals regulations 14 and 15 of the principal Regulations.\nA Tax Information and Impact Note covering this instrument was published on 23rd March 2011 alongside draft legislation on the bank levy and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2011/1785/note",
    "retrieved_at": "2026-10-29T02:01:02.173292+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}