Income Tax (Earnings and Pensions) Act 2003 section 554Z11D

Earlier income tax liability: provisional payments of tax

Section 554Z11D defines what counts as a provisional payment of tax and ensures that the double taxation relief provisions only apply where tax has actually been paid on a final basis, not merely on a provisional or interim basis.

• A provisional payment of tax includes payments on account of income tax, accelerated payments under Finance Act 2014, and payments made while an appeal is pending under TMA 1970
• Making a provisional payment of tax does not, by itself, count as having paid or accounted for tax for double taxation relief purposes
• An exception exists where HMRC has granted an application under section 554Z11E to treat a provisional payment as an actual payment of tax
• Payments already treated as payments on account of a tax liability under section 554Z11C are excluded from the definition of provisional payments