After regulation 5 insert—
Instalment payments – ring fence profits and adjusted ring fence profits
(5A)
(1) This regulation applies to amounts in respect of the liability to corporation tax and supplementary charge in relation to the ring fence profits and adjusted ring fence profits of a large company for an accounting period (“the ring fence amount”).
(2) The ring fence amount shall be treated as becoming due and payable in instalments (not exceeding three) on the dates specified in paragraph (3).
(3) The first instalment payment shall be treated, subject to paragraph (4), as being due and payable on the date which is six months and 13 days from the start of the accounting period.
The final instalment payment shall be treated as being due and payable on the date which is 14 days from the end of the accounting period.
An additional instalment payment shall, where the length of the accounting period so allows, be treated as becoming due and payable on the date which is three months after the date of the first instalment payment.
(4) Where the length of the accounting period is such that the date which is 14 days from the end of the accounting period falls earlier than the date which is six months and 13 days from the start of the accounting period, the ring fence amount shall be treated as becoming due and payable on the date which is 14 days from the end of the accounting period.
(5) Where in accordance with paragraph (2) ring fence amounts are treated as becoming due and payable in instalments, the amount treated as becoming due and payable on any instalment payment date shall be calculated in accordance with paragraphs (6) to (8) and by reference to the formula—
(a) in relation to an accounting period of a large company ending on or after 1st July 2005 but before 1st July 2006, 3 x RFA / n, and
(b) thereafter, 4 x RFA / n
where—
RFA is the ring fence amount, andn is the number of whole months falling within that accounting period plus the appropriate decimal.
(6) The amount treated as becoming due and payable on the first instalment payment date is the smaller of RFA and the amount resulting from the formula in paragraph (5).
(7) The amount treated as becoming due and payable on any subsequent instalment payment date other than the final instalment payment date is the smaller of—
(a) the balance of the company’s ring fence amount for that accounting period carried forward from the immediately preceding instalment payment date, and
(b) the amount resulting from the formula specified in paragraph (5).
(8) The amount treated as becoming due and payable on the final instalment payment date is the balance of the company’s ring fence amount for that accounting period carried forward from the immediately preceding instalment payment date.
(9) In this regulation—
“adjusted ring fence profits” has the meaning given in section 501A(2) of the Taxes Act ;
“the appropriate decimal” is a decimal, calculated to two places rounded arithmetically where necessary, representing the number of days in the accounting period falling outside the whole months falling within that period and corresponding to the fraction of which the numerator is the number of those days and the denominator is 30;
“ring fence profits” has the meaning given in section 502(1) of the Taxes Act ;
“supplementary charge” means the charge imposed by section 501A(1) of the Taxes Act.
