CTM92190 | Corporation Tax self-assessment (CTSA): the payment obligation: late payment interest - tax deductible
From HM Revenue & Customs · Company Taxation Manual
Late payment interest, chargeable under , 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 ( and ). The same is true of interest under:
on IT deductible from company payments under
as extended by SI1998/3175 Regulation 7, on late and inadequate instalment payments (debit interest), see .
The formulae for setting interest rates under Section 87A do not contain an adjustment for tax. The formulae are at SI1989/1297 Regulations 3ZA and 3ZB inserted by SI1998/3176 Regulation 6.