{
  "url": "https://openlegislation.uk/taxes-management-act-1970/section-87A",
  "json_url": "https://openlegislation.uk/taxes-management-act-1970/section-87A.json",
  "legislation": "ukpga/1970/9",
  "legislation_title": "Taxes Management Act 1970",
  "legislation_url": "https://openlegislation.uk/taxes-management-act-1970",
  "path": "section/87A",
  "kind": "section",
  "number": "87A",
  "heading": "Interest on overdue corporation tax etc.",
  "text": "(1) Corporation tax shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date when the tax becomes due and payable (in accordance with section 59D of this Act) until payment.\n(2) Subsection (1) above applies even if the date when the tax becomes due and payable (as mentioned in that subsection) is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.\n(3) In relation to corporation tax assessed or treated as assessed by virtue of section 346(2) or 347(1) of the principal Act, 137(4), 139(7) or 190 ... of the 1992 Act ... paragraph 75A(2) of Schedule 18 to the Finance Act 1998, ... paragraph 69 of Schedule 29 to the Finance Act 2002 or Chapter 7 of Part 22 of CTA 2010 (which enable unpaid corporation tax assessed on a company to be assessed on other persons in certain circumstances), the reference in subsection (1) above to the date when the tax becomes due and payable is a reference to the date when it became due and payable by the company.\n(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(4A) In a case where—\n(a) there is for an accounting period of a company (“the later period”) a non-trading deficit on the company’s loan relationships,\n(b) as a result of a claim under section 389(1) or 459(1)(b) of CTA 2009 the whole or part of the deficit for the later period is set off against profits of an earlier accounting period (“the earlier period”), and\n(c) if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,\nthen, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable as mentioned in subsection (8) below.\n(4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(6) In any case where—\n(a) on a claim under section 37 of CTA 2010, the whole or any part of a loss incurred in an accounting period (“the later period”) has been relieved (whether under that section or section 42 of that Act) for the purposes of corporation tax against profits of a preceding accounting period (“the earlier period”);\n(b) the earlier period does not fall wholly within the period of twelve months immediately preceding the later period; and\n(c) if the claim had not been made, there would be an amount or, as the case may be, an additional amount of corporation tax for the earlier period which would carry interest in accordance with this section,\nthen, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable as mentioned in subsection (8) below.\n(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(8) In subsections (4), (4A) and (6) above, any reference to the date on which corporation tax for an accounting period became, or would have become, due and payable shall be construed on the basis that corporation tax for an accounting period becomes due and payable on the day following the expiry of nine months from the end of the accounting period.\n(9) The power conferred by section 59E of this Act (alteration of date on which corporation tax becomes due and payable) does not include power to make provision in relation to subsection (4), (4A), (6) or (8) above the effect of which would be to change the meaning of references in subsection (4), (4A) or (6) above to the date on which corporation tax for an accounting period became, or would have become, due and payable (as mentioned in subsection (8) above).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 87A inserted by Finance (No. 2) Act 1987 (c. 51), ss. 85, 95(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 87A substituted by Finance Act 1989 (c. 26), s. 179(1)(b); S.I. 1989/1298."
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 87A(1) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 24; S.I. 1998/3173, art. 2"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 87A(3) inserted (with effect in accordance with s. 98(2), Sch. 29 para. 9(3)) of the amending Act) by Finance Act 2000 (c. 17), Sch. 28 para. 3(4)(a), Sch. 29 para. 9(2)(a) (with Sch. 29 para. 46(5))"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Income and Corporation Taxes Act 1988 (c. 1), s. 844, Sch. 29 para. 10(4)(b)."
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 87A(3) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(9) (with ss. 60, 101(1), 171, 201(3))"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 87A(3) inserted (with effect in accordance with Sch. 29 para. 9(3) of the amending Act) by Finance Act 2000 (c. 17), Sch. 29 para. 9(2)(b) (with Sch. 29 para. 46(5))"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in s. 87A(3) repealed (with effect in accordance with Sch. 29 para. 4(7) of the amending Act) by Finance Act 2000 (c. 17), Sch. 40 Pt. 2(12)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Word in s. 87A(3) repealed (with effect in accordance with s. 98(2) of the amending Act) by Finance Act 2000 (c. 17), Sch. 40 Pt. 2(11)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in s. 87A(3) substituted (with effect in accordance with s. 92(7) of the amending Act) by Finance Act 1999 (c. 16), s. 92(5)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in s. 87A(3) substituted (with effect in accordance with s. 84(1) of the amending Act) by Finance Act 2002 (c. 23), Sch. 29 para. 69(4)"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in s. 87A(3) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 156(2)(a), Sch. 3 Pt. 1 (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in s. 87A(3) inserted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 156(2)(b) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "S. 87A(4) repealed (with effect in accordance with Sch. 3 para. 4(4) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 4(2), Sch. 27 Pt. 3(2)"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "S. 87A(4A) inserted (27.7.1993) by 1993 c. 34, s. 170, Sch. 18 para.1"
    },
    {
      "type": "F",
      "label": "F16",
      "text": "Words in s. 87A(4A)(a) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 1(1)(a) (with Sch. 15)"
    },
    {
      "type": "F",
      "label": "F17",
      "text": "Words in s. 87A(4A)(b) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 1(1)(b) (with Sch. 15)"
    },
    {
      "type": "F",
      "label": "F18",
      "text": "Words in s. 87A(4A)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 305 (with Sch. 2 Pts. 1, 2)"
    },
    {
      "type": "F",
      "label": "F19",
      "text": "S. 87A(4A)(c) substituted (23.3.1995) by Finance Act 1995 (c. 4), Sch. 24 paras. 7, 8(a); S.I. 1994/3224, art. 2"
    },
    {
      "type": "F",
      "label": "F20",
      "text": "Words in s. 87A(4A) substituted (23.3.1995) by Finance Act 1995 (c. 4), Sch. 24 paras. 7, 8(b); S.I. 1994/3224, art. 2"
    },
    {
      "type": "F",
      "label": "F21",
      "text": "Words in s. 87A(4A) substituted (with effect in accordance with Sch. 4 para. 4(5)(6) of the amending Act) by Finance Act 1998 (c. 36), Sch. 4 para. 4(2); S.I. 1998/3173, art. 2"
    },
    {
      "type": "F",
      "label": "F22",
      "text": "S. 87A(4B) repealed (with effect in accordance with Sch. 3 para. 4(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 4(3), Sch. 27 Pt. 3(2)"
    },
    {
      "type": "F",
      "label": "F23",
      "text": "S. 87A(5) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 51(10)"
    },
    {
      "type": "F",
      "label": "F24",
      "text": "S. 87A(6)(7) substituted (27.7.1993) for s. 87A(6) by 1993 c. 34, s. 120, Sch. 14 para. 4(2)"
    },
    {
      "type": "F",
      "label": "F25",
      "text": "Words in s. 87A(6)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 156(4)(a) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F26",
      "text": "Words in s. 87A(6)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 156(4)(b) (with Sch. 2)"
    },
    {
      "type": "F",
      "label": "F27",
      "text": "Words in s. 87A(6) substituted (with effect in accordance with Sch. 4 para. 4(5)(6) of the amending Act) by Finance Act 1998 (c. 36), Sch. 4 para. 4(2); S.I. 1998/3173, art. 2"
    },
    {
      "type": "F",
      "label": "F28",
      "text": "S. 87A(7) repealed (with effect in accordance with Sch. 3 para. 4(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 4(3), Sch. 27 Pt. 3(2)"
    },
    {
      "type": "F",
      "label": "F29",
      "text": "S. 87A(8) inserted (with effect in accordance with Sch. 4 para. 4(5)(6) of the amending Act) by Finance Act 1998 (c. 36), Sch. 4 para. 4(3); S.I. 1998/3173, art. 2"
    },
    {
      "type": "F",
      "label": "F30",
      "text": "S. 87A(9) inserted (with effect in accordance with Sch. 4 para. 4(5)(6) of the amending Act) by Finance Act 1998 (c. 36), Sch. 4 para. 4(4); S.I. 1998/3173, art. 2"
    },
    {
      "type": "M",
      "label": "M1",
      "text": "1882 c. 61."
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 87A modified (3.5.1994) by Finance Act 1994 (c. 9), s. 250(4)(5)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "S. 87A applied (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 52(6) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2"
    },
    {
      "type": "C",
      "label": "C3",
      "text": "S. 87A modified (with effect in accordance with s. 63(4) of the amending Act) by Finance Act 2000 (c. 17), Sch. 15 para. 63(2)"
    },
    {
      "type": "C",
      "label": "C4",
      "text": "S. 87A applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 716, 1184(1) (with Sch. 2)"
    },
    {
      "type": "C",
      "label": "C5",
      "text": "S. 87A applied (with modifications) (with effect in accordance with reg. 1(2) of the affecting S.I.) by The Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175), regs. 1(1), 7 (as amended by S.I. 2011/1785, regs. 1(1)(2), 10; and (1.4.2019) by S.I. 2017/1072, regs. 1(1), 9 (with reg. 1(2)))"
    },
    {
      "type": "C",
      "label": "C6",
      "text": "S. 87A modified (with effect in accordance with s. 56(8) of the amending Act) by 1992 c. 12, ss. 257A(5), 257B(7) (as inserted by Finance Act 2026 (c. 11), s. 56(8), Sch. 9 para. 19)"
    },
    {
      "type": "C",
      "label": "C7",
      "text": "S. 87A modified (with effect in accordance with s. 56(8) of the amending Act) by 2010 c. 4, ss. 939FA(3), 939FB(6) (as inserted by Finance Act 2026 (c. 11), s. 56(8), Sch. 9 para. 18)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1970/9/section/87A",
    "retrieved_at": "2026-10-29T10:51:31.747484+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."
}