Awkward s455 Question

Awkward s455 Question

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Co A has y/e 31/07.

For year to 2013/14 A is large for Corporation Tax purposes and liable to the POA regime for the first time. Prior to 2013 y/e s455 of £138k is paid and held by HMRC. Dividend issued to clear overdrawn DLA during April 2014, now £nil.

April 2014 is month 9 of the he CTAP to 31/07/2014 and first CT POA is due, let us say, £200k.

s455 repayment claim sent during May 2014.

So to the question...

When is the s455 repayable relieved?!

Replies (10)

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By User deleted
27th Jun 2014 10:36

1 April 2015

It's not an awkward question at all, and could have been avoided by looking at the legislation.

[EDIT - perhaps more awkward than I thought. Or, more likely, another case of my fingers working faster than my brain - correct answer is 1 May 2015]

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By Steve Kesby
27th Jun 2014 08:13

Legislation

To satisfy yourself that BKD is correct, the legislation to look at is SI 1998/3175 (CT instalment payment regs), regs. 5 and 2(3) and FA 1998, Sch. 18, para. 8, which makes no reference to a deduction under CTA 2010, s. 456 in computing "the amount of tax payable", which is also the "total liability" for POA purposes.

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By cparker87
27th Jun 2014 09:06

Thanks chaps

Thank you for you responses. 

Cheer up BKD. I don't think it was excessive calling this an awkward question, certainly out of the ordinary of mine and I would wager most people's work and so is awkward from my point.

 

 

 

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By User deleted
27th Jun 2014 09:13

I'm quite happy, thanks

s458(5) is very simple and unambiguous.  (Steve - s456??)

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By JCresswellTax
27th Jun 2014 09:26

I think it is ambiguous

As I don't understand - or can't add up!

Wasn't the loan repaid during the APE 31.07.14 so repayment is due 9m 1 d after that, i.e. 1st May 2014?

Or what am I totally not getting?

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By User deleted
27th Jun 2014 09:38

I don't think ...

... that either of us can add up.

Relief will indeed be due on 1 May (not April) but in 2015 (not 2014). Perhaps the question was awkward after all ;)

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By andy.partridge
27th Jun 2014 10:07

Agree with BKD

I assume JCresswellTax's 'ie. 1st May 2014' is just a typo.

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By Steve Kesby
27th Jun 2014 10:21

s. 456

It was the only one that I didn't check and attempted from memory! I meant s. 458!

And I'd relied on your addition being correct!

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By cparker87
27th Jun 2014 10:25

...

Well this is awkward..

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By JCresswellTax
27th Jun 2014 10:36

Ha ha

Even in pointing out what I thought may have been an error, I made an error myself! ;)

Best that this thread is confined to the recycle bin to save embarrassment all round!

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