Clause 45 - Application of corporation tax provisions and management of RPDT

Part of Finance (No. 2) Bill – in a Public Bill Committee at 4:30 pm on 5 January 2022.

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Photo of Lucy Frazer Lucy Frazer The Financial Secretary to the Treasury 4:30, 5 January 2022

Clause 45 and schedule 8 provide for RPDT to be treated for administrative purposes as an amount of UK corporation tax. Clause 45 outlines the framework within which RPDT will operate and makes necessary amendments to existing administrative legislation to accommodate RPDT. It also introduces schedule 8, which makes further provisions about the management of RPDT, including setting out the circumstances in which a company will not be required to report its RPDT profits, which will reduce any administrative burden for groups with profits that are unlikely to exceed the annual allowance.

In summary, the clause and schedule set out important mechanics for the collection, management and payment of RPDT.