CTM92190 - Corporation Tax self-assessment (CTSA): the payment obligation: late payment interest - tax deductible
Late payment interest, chargeable under TMA70/S87A, is an allowable expense in computing CT profits. It falls to be taken into account for tax purposes as a non-trading debit under the loan relationship legislation (FA98/S33 and CTA2009/PART5). »Ê¹ÚÌåÓýapp same is true of interest under:
- TMA70/S87 on IT deductible from company payments under ITA07/Chapter 15
- TMA70/S87A as extended by SI1998/3175 Regulation 7, on late and inadequate instalment payments (debit interest), see CTM92660.
»Ê¹ÚÌåÓýapp formulae for setting interest rates under Section 87A do not contain an adjustment for tax. »Ê¹ÚÌåÓýapp formulae are at SI1989/1297 Regulations 3ZA and 3ZB inserted by SI1998/3176 Regulation 6.