Chapter 6 - Interest on Late Paid Tax and Repayments Flashcards Preview

Paper 2: Corporate Tax & VAT > Chapter 6 - Interest on Late Paid Tax and Repayments > Flashcards

Flashcards in Chapter 6 - Interest on Late Paid Tax and Repayments Deck (4)
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1

Interest

Interest runs from the due date for payments to the actual date of payment where CT is paid late. This applies to all payments for co's small or large.

2

Interest Rate

Rate HMRC charges is 2.5% + bank base rate

3

Repayments

Overpaid tax receives repayment interest at a rate of a bank rate minus 1% (min rate of 0.5%)

4

Treatment

Interest received is non-trade profit.
Interest paid is interest paid on non-trading loan and can be deducted from non-trade profit