Revenue Note for Guidance

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Revenue Note for Guidance

952 Obligation to pay preliminary tax

A chargeable person is obliged to pay preliminary tax for a chargeable period except where the inspector has already made an assessment before the due date for payment. The amount to be paid is the amount which in the taxpayer’s opinion would be due under an assessment for the period.

Under section 958 preliminary tax is payable as follows —

  • in the case of income tax, on or before 31 October in the tax year,
  • in the case of corporation tax, different rules apply for small and large companies.
    For accounting periods commencing on or after 14 October 2008, large companies must pay preliminary tax in two instalments. The first instalment is payable in month 6 of the accounting period and the second instalment is payable in month 11 of the accounting period. Small companies pay preliminary tax in one instalment in month 11 of the accounting period (see notes on section 958 for full details).

Preliminary tax is not payable in the case of capital gains tax. However, a system of payment of final tax due operates in advance of the date on which the relevant return must be made.

Preliminary tax is payable without notice from the inspector and is allowable, as appropriate, as a credit against income tax, corporation tax or capital gains tax due for the tax year or accounting period.

Relevant Date: Finance Act 2021