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Company losses

Relief for losses

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I am preparing company accounts for a cessation period of 15 months. It has incurred a loss. The previous 12 month accounts had a profit in access of this loss. Can the loss be fully relieved and if so which box or boxes should be completed in the CT600.

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By johngroganjga
05th May 2016 12:30

You need to look at the tax computations for the previous year, not the accounts. But yes in principle a trading loss can be carried back.

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By Barnet
05th May 2016 13:30

I have looked at the tax comps. Under cessation rules, the loss for the 12 month period to cessation can be carried back 3 years (S. 388) . Loss under S. 393 can be carried back 12 months. I have a 15 month final period. So the Accounting periods for CT purposes will be 12 months and 3 months to cessation. The Profit in the previous 12 months exceeds the 15 month loss. Do I use both the sections to claim loss relief? If so which box/boxes should be completed in CT600 because all I can see is Box 30 - relief under S393A and nothing about S388 losses brought back.

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By Portia Nina Levin
05th May 2016 13:41

You need to get some up to date legislation.

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RLI
By lionofludesch
05th May 2016 13:55

Barnet wrote:

I have a 15 month final period. So the Accounting periods for CT purposes will be 12 months and 3 months to cessation. The Profit in the previous 12 months exceeds the 15 month loss. Do I use both the sections to claim loss relief? If so which box/boxes should be completed in CT600 because all I can see is Box 30 - relief under S393A and nothing about S388 losses brought back.

You said it yourself - you have a 12 and a 3. Can you clarify your problem ?

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By Barnet
05th May 2016 14:03

Just looking for confirmation that I am correct in thinking that full loss relief can be obtained before I finalise the accounts so that the correct repayment due can be shown. Also seems like I just show one figure in Box 30 in the previous year's CT600 for the full amount of the carried back loss. Again, just looking for confirmation.

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