In process of finalising small co accounts for year ended 30.04.07 and CT liability is due on 01.02.08.
S419 tax was paid on overdrawn directors loan account as at 30.04.06 and the overdrawn amount has increased during the year ended 30.04.07.
One of the two directors left the company on 31.12.07 and the overdrawn loan is to be written off at that date.
I believe no section 419 tax is due on the increase during the year to 30.04.07 as the loan has been written off within nine months of year end and supplementary page to CT600 may be completed to that effect.
However, my question is - can the section 419 tax repayable on overdrawn amount to 30.04.06 be offset against the company's corporation tax liability for the year ended 30.04.07 which is due on 01.02.08?
I know everyone is busy but hopefully the answer is a quick and simple one?!
Gemma
Replies (4)
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Thanks again William
Most useful link as I do like to read and understand the basis of advice given especially where it is likely to crop up again in the future.
It might be worth having a look
at the following link in the HMRC manuals
http://www.hmrc.gov.uk/manuals/commanual/comcar/comcar04121.htm
No
Is there anywhere on the supplementary CT600A to put the repayment or writing off of loans made in an earlier year? No. You can only enter the subsequent repayment or writing off of loans made in the current year.
Is there any other way of reclaiming the relief due under s.419(4) on the repayment or writing off of loans made in an earlier year on the CT600 for the current year? No.
You need to write a letter to the CT district to claim a refund of s.419 tax paid for an earlier year.