Finance Bill 2019-20: HMRC publish policy paper on deferral of CT payments on EU group asset transfers
Released 11 July 2019
HMRC have published a policy paper, along with draft legislation and an explanatory note, covering an option to existing legislation governing when corporation tax (CT) payments must be made in respect of profits or gains, that are charged to tax on certain transfers of assets to a member of the same group of companies, that is resident in another European Union (EU) or EEA state.
From 11 July 2019, companies may apply with immediate to effect, to defer payment of up to the amount of CT on profits or gains attributable to affected group asset transfers, for which the due and payable date given by TMA 1970, s. 59D has not yet passed.
The same rule applies whether or not the company is a large or very large company, that usually pays its CT under the quarterly instalment provisions. In effect this means that CT on group asset transfers during accounting periods that ended on or after 10 October 2018, can be the subject of an application for deferred payment.