Corporation Tax return - more than one trade

Corporation Tax return - more than one trade

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I use vt final accounts software to prepare corporation tax computations and submit these using the HMRC corporation tax software.

Most of my limited company clients have very simple affairs, with just one trade.

I have one client who has two trades. In the first year of trading, both trades made a loss. This was simple to show in total on the corporation tax return.

In the second year of trading, Trade A has made a loss and Trade B a profit. 

I understand that I first need to relieve part of the Trade B brought forward loss against the Trade B profit. The brought forward loss for Trade B was higher than the current year profit, so there remains a loss to carry forward in Trade B.

However, I have no idea how to show this in the tax return. There is seemingly no option to split results in the vt accounts software between two separate trades, or to separate losses into different trades, and the HMRC corporation tax return software also does not offer an option of showing trading profits/losses and losses utilised for two separate trades.

Any advice would be much appreciated as I am really rather stuck! I have called the Corporation Tax office for advice, but apparently they are not trained in such matters and I must wait 3 days for a technical adviser to call me back.

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By Paul Soper
28th Nov 2014 13:04

What is a return?

Bear in mind that for CT purposes the return includes not only the CT600 and supplementary schedules but also the accounts and, most importantly, the computations.

Don't split the totals in the return but show in a separate computation what the results of the two trades are and the methodology used for the offset of the losses.

The CT600 is only designed to accept the summarised information unlike the SA returns, it shouldn't take too long to produce a single document that you then attach...

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By johngroganjga
28th Nov 2014 13:28

I agree. You just do a computation and attach it.

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