Client had an overdrawn DLA at 28 Feb 2013 of £7,000. S455 tax was paid. At 28 February 2014 the cumulative loan account was £9,000 overdrawn which was cleared by a dividend £12,000 credited to the DLA on 25 November 2014. Should I write to HMRC requesting a refund the S455 tax paid on the £7,000 or have I got my timings wrong?
Thanks
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Your timing is wrong
No additional s455 tax on the £2k increase but you won't get the refund for the £7k loan until 1 December 2015.
Be warned
I claimed relief under s.458 for a client in a case where the loan had been repaid within the year by writing to HMRC after the company's year-end, specifically asking for the tax to be repaid 9 months after the year-end. I received a reply that I couldn't even make a claim until 9 months after the year-end, which is rubbish. I replied somewhat tartly, threatening a complaint if my claim was rejected. I have heard nothing since!
previous thread
There was quite an extended thread on this a while ago. If you struggle to get the AWeb search system to work properly - and who doesn't? - here's the link:
www.accountingweb.co.uk/anyanswers/question/getting-credit-s455-repaymen...
BKD is spot on re the timing...
...and there is a new form L2P to reclaim the s455 tax paid which can be found here https://www.gov.uk/government/publications/corporation-tax-reclaim-tax-p...
Ford