HMRC issues reminder about loss relief extension
There is a temporary extension to the rules regarding the carry back of corporation tax trading losses due to the coronavirus pandemic. HMRC has just issued a reminder that some companies can speed up the claim for relief. What are the key points?
Corporation tax trading losses can generally be offset against other profits of the same accounting period, carried forward to offset future profits, or carried back to be offset in the previous accounting period. Due to the coronavirus pandemic, the carry back period is extended to three years for losses realised in accounting periods ending between 1 April 2020 and 31 March 2022. In general, this will be claimed via the corporation tax return, but HMRC has just issued a reminder that there is an alternative method available for smaller losses.
If the loss doesn’t exceed £200,000, the company can make the claim via an online form. This can be done as soon as the loss can be accurately established after the end of the accounting period. This means that where there is a delay in filing the corporation tax return, the relief can be claimed immediately. The form is available via the Government Gateway, and can be accessed here (log in details required). Evidence of the loss, e.g. management accounts will need to be provided.
Related Topics
-
Alternative education providers can protect VAT refund claims
HMRC has confirmed that some alternative providers of higher and further education can submit VAT refund claims following a Court of Appeal ruling, despite HMRC appealing the decision to the Supreme Court. What do you need to know?
-
Old IHT forms will be rejected
HMRC has stopped processing old versions of the Inheritance Tax IHT100 forms from 31 August 2026. Anyone reporting an IHT chargeable event involving a gift or trust will need to make sure they are using the correct forms. What do you need to know?
-
The tax incentive to do a thorough stock-take
The annual stock-take isn’t exactly your favourite thing to do. You know resources could be better spent elsewhere so you try to get through it as quickly as possible. Why might it be worth a little more of your time?