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Section 108: Suspension of penalties during currency of agreement for deferred payment

Finance Act 2009 · 2009 c. 10View on legislation.gov.uk

Part 7: Administration

This section applies if—

a person ("P") fails to pay an amount of tax falling within the Table in subsection (5) when it becomes due and payable,
P makes a request to an officer of Revenue and Customs that payment of the amount of tax be deferred, and
an officer of Revenue and Customs agrees that payment of that amount may be deferred for a period ("the deferral period").

P is not liable to a penalty for failing to pay the amount mentioned in subsection (1) if—

the penalty falls within the Table, and
P would (apart from this subsection) become liable to it between the date on which P makes the request and the end of the deferral period.

P breaks an agreement if—

P fails to pay the amount of tax in question when the deferral period ends, or
the deferral is subject to P complying with a condition (including a condition that part of the amount be paid during the deferral period) and P fails to comply with it.

The taxes and penalties referred to in subsections (1) and (2) are—

If the agreement mentioned in subsection (1)(c) is varied at any time by a further agreement between P and an officer of Revenue and Customs, this section applies from that time to the agreement as varied.

The Treasury may by order amend the Table by adding or removing a tax or a penalty.

An order under subsection (7) is to be made by statutory instrument.

A statutory instrument containing an order under subsection (7) is subject to annulment in pursuance of a resolution of the House of Commons.

In this section, except in the entries in the Table, "penalty" includes surcharge and penalty interest.

This section has effect where the agreement mentioned in subsection (1)(c) is made on or after 24 November 2008.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.