Explanatory note

These Regulations amend the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175) (“the principal Regulations”) following changes to simplify tax legislation as a result of the unification of corporation tax rates in the Finance Act 2014. The principal Regulations provide that a large company’s liability to corporation tax for an accounting period is due and payable in instalments.

Regulation 1 deals with citation, commencement and effect.

Regulation 2 amends regulation 2 to up-date the statutory reference to the defined term “augmented profits” and amends regulation 3 to make consequential amendments to the definition of a large company following the simplification measures in Finance Act 2014. The amendment inserts an amount for the profit limit, a formula to determine the profit limits in the case of certain groups and an apportionment provision.

A Tax Information and Impact Note covering this instrument was first published on 10 December 2013 and is available on the HMRC website at https://www.gov.uk/government/publications/finance-bill-2014-tiins . This remains an accurate summary of the impacts that also apply to this instrument.