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Corp tax loss - carry back 3 years

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A trading loss for y/e 31 Jan 2021 is being carried back to 31 Jan 2018 as this is the only year that there are profits to offset under the recent new rules. Do i need to amend the 2018 CT600 or is ticking box 45 "Claim or relief affecting an earlier period" on 2021 return sufficient? I can't find anywhere where it states to submit an amended return for the period affected.

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By Wanderer
10th May 2021 12:56

Doubt if you can amend a 31/01/2018 retun now?
Any carry back requested on a CT return will generally be completely ignored by HMRC.
Write separately asking for it to be actioned.

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By garryh
10th May 2021 13:16

The latest guidance on making loss claims reads..............

Amended company tax returns
You do not need to submit your amended company tax returns online. If you submit amended returns on the online portal for the accounting periods for the extended relief claim, they will be rejected as the time limit on amendments will have passed.

If a company tax return is made, make sure box 45 on CT600 form is completed. More details on the claims should be explained in the computations in the same way that any claim for one year carry back is made.

Also............ Claims should not be made until the Finance Bill receives Royal Assent which is expected to take place around mid-July.

I have just prepared a claim and attached with the Tax Return on the basis it will be many months after July before HMRC actually review and hopefully deal with the repayment.

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Replying to garryh:
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By VP
10th May 2021 13:25

Thank you very much for your detailed reply.

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Replying to garryh:
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By VP
06th Jul 2021 12:06

An update.
I submitted the CT600 with a calculation for the 3 yr carry back claim on 15 June 2021. After the bill received Royal Asent on 10th June 2021.

Refund payment received into business bank account on Mon 5th July and HMRC claims and elections letters received today.

Thanks for your advice.

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By Paul Crowley
10th May 2021 13:37

Seems to me HMRC can never keep up with tax rule changes, and deciding on how taxpayers can get back tax that the taxpayer needs.

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By VP
21st May 2021 12:55

Update. This was in the Agent Update issue 84. Same as what garryh said.

Extended loss carry back – claims information for companies

The extended loss carry back measure announced at Budget enables companies to make claims to carry back losses for a further 2 years than current rules allow. This temporary extension applies for losses arising in accounting periods ending between 1 April 2020 and 31 March 2022.

A guidance note setting out further information on extended loss carry back for businesses is available.
https://www.gov.uk/government/publications/extended-loss-carry-back-for-...

Claims for the extended relief cannot be made until the Finance Bill receives Royal Assent, which is expected to happen mid-July. Any claims received before Royal Assent will not be processed and claimant companies will be asked to re-submit their claims in July 2021.

Claims process following Royal Assent.

Claims that exceed the de minimis of £200,000 must be made in a company tax return. Box 45 (claim or relief affecting an earlier period) on the CT600 should be completed and details of the carry back claims included in the computations that accompany the CT600 and accounts.

There is no need to submit amended returns for the earlier periods to which the extended relief applies as the claims will be treated as amendments to those returns. Amended returns for these periods will be rejected for online submission as, in most cases, they will be out of time for amendment.

Claims below the de minimis limit of £200,000 may be made outside of the company tax return via a letter to the company’s usual HMRC Corporation Tax point of contact. The letter should contain the following information:

company name and Unique Taxpayer Reference
detail of the accounting period during which the loss was incurred
evidence of the loss incurred in the form of draft management accounts
details of the amount of the loss to be carried back to the relevant periods
company bank details for repayment purposes

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