COM53160 - Claims / reliefs: other reliefs: S458 CTA 2010 (formerly S419(4) ICTA 1988) - late payment interest

Late payment interest is chargeable under Section 87A TMA 1970 on S455 (formerly S419 )tax paid late

• From the normal CT due date (Word 49KB) of the AP in which the loan was made
• To the earlier of

• The date the tax is paid

• The date the loan giving rise to the charge is repaid, released or written off

COTAX will not hold the latter date. When you use Function RAMA (Record / Amend Assessment) to enter S458 (formerly S419(4)) details on an AP (and you will normally only need to do that for S458 relief deferred under S458(5)), COTAX sets the Clerical Interest Indicator (CII (Word 32KB)). You have to give the necessary details to Accounts Office using form CT250(P). Setting the CII inhibits COTAX from automatically posting an (incorrect) interest charge.

The Accounts Office will post the correct interest charge to the record using Function RMIC (Record Manual Interest Charge), when they receive the form CT250(P). See Example 3 (Word 86KB) and Example 6 (Word 81KB).

Note: Where a company claims relief under Section 458 because a loan has been wholly or partly repaid, released or written-off on or after the due date of the AP in which the loan was made, the relief is deferred under Section 458(5) until the normal due date for the AP in which the repayment, release or write-off takes place. In such cases the interest effective date will precede the time at which you can give the S458 relief.

For a list of forms relevant to this subject, see COM53011.

For a list of functions to use in particular situations, see COM53012.

For legislation applying to this subject, see COM53013.