A client of mine has generated a small CT loss that we want to carry back to the previous year.
My question is, do i have to file an amended CT return for the prior year along with current years Accounts and CT return.
Many thanks
K
Replies (5)
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Hopefully everything you need to know should be in this handy guide on the UK.gov website.
https://www.gov.uk/guidance/corporation-tax-calculating-and-claiming-a-loss
As helpful as the Revenue guidance occasionally is, in practice it depends on the software, and how well HMRC process it. You shouldn't have to in theory (there is a box that advises HMRC that there is relief that will affect an earlier period), but my software provider advises that you do. In my experience, it takes ages (and often a couple of prompts) for HMRC to action the the loss relief in the earlier year.
My experience shows that HMRC doesn't process the amended earlier year.
Just include it in the comps for the later year & tick Box 45, Claim for earlier year box on the later year CT600.
You don't have to but you'll get it quicker and more reliably if you do and it takes all of five minutes on most software.
Again my experience is that they don't process the amended earlier year return at all. Others have reported the same on Accounting Web.