Regulation 9.1 Rule 9

Interest shall be calculated on the amount of the result of Rule 8, at the rate specified in Regulation 3ZA(1) of the Taxes (Interest Rate) Regulations 1989^f1—

(a)

but as if there were deducted therefrom corporation tax at the rate fixed for companies generally (within the meaning in section 13(1) of the Taxes Act^f2) for the later period of account, and

(b)

save that the rate of interest is a compound rate, with annual rests,

from the date when corporation tax for the earlier period of account became due and payable until the date when corporation tax for the later period of account becomes due and payable (in both cases, determined in accordance with section 59D of the Taxes Management Act 1970^f3, treating those periods as if they were accounting periods).

Annotations

Footnotes

f1: S.I. 1989/1297; regulation 3ZA was inserted by regulation 6 of S.I. 1998/3176.
f2: Section 13(1) was amended by section 105(1) of the Finance Act 1989 (c. 26).
f3: 1970 c. 9; section 59D was substituted by paragraph 29 of Schedule 19 to the Finance Act 1998.