Tax unpaid

For Tax geared/Tax related penalties the tax unpaid used to calculate the penalty is as follows:

• For Corporation Tax Pay & File return periods - The Corporation Tax chargeable on the profits of the return period that remains unpaid 18 months after the end of the return period, less any Income Tax that is to be set off under certain sections of the Statute (S7(2) or 11(3) ICTA 1988). Corporation Tax chargeable is the final figure of Corporation Tax after deduction of group relief and carry backs of trade losses, surplus Advanced Corporation Tax and so on, from later Accounting Periods (but not including Advanced Corporation Tax carried back from a subsequent Accounting Period that ends more than 2 years after the end of the Accounting Period for which the penalty is due).
• For Corporation Tax Self Assessment return periods - The amount of company tax payable by the company for the Accounting Period for which the return was required that remains unpaid on the date when the liability to the penalty arises. (No allowance is made for any deferred relief due under the provisions of S419(4A) ICTA 1988 (relief in respect of repayment of loan).) In a group situation if there has been a S102 FA 1989 surrender of tax there are special rules to work out the unpaid tax.