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Nil CT return

I have just taken on a client who has a company that has not traded for a few years, but the client wishes to keep the company open.

Each year the previous accountant has prepared full statutory accounts with a profit and loss account that just shows the AR filing fee and accountancy fees as losses, no trading and no income. 

I know the statutory accounts still need to be prepared as there are still transactions in the company, however CT returns have also been filed for years in which no trade or income existed.  In view of the fact that the company is no longer trading and has no other source of income are CTR's necessary?  Or does the company need to be dormant within the companies act definitions before the need to file CTR's disappears? 

Many thanks.


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By pawncob
16th Apr 2012 17:10


I assume you're claiming the losses so a return is needed.

Thanks (1)
By Jimess
16th Apr 2012 17:43

Loss claims?

Thanks for your posting Pawncob.

There cannot be any trading losses as there is no trading activity and management expenses cannot be claimed unless the company is chargeable to corporation tax, which it isn't as there is no source of income for CT to be chargeable on - so I cannot see how loss claims/management expenses claims can arise. Or am I missing a vital point somewhere?

Thanks (0)
By ACDWebb
17th Apr 2012 08:27

If it is dormant and merely retained say for name protection

then you can ask HMRC to treat it as such and not issue CT returns and just advise them if the situation changes in the future and trading restarts.

They will then issue a form CT204 every few years to review / confirm the situation

Thanks (2)