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Corporation tax relief

Corporation tax relief

We have a client who's year end is 31 January. For the year to 2012 they are showing profit of 300K and tax of around 100k.

Since January the next 5 months have been terrible and losses will be approaching 300k. 

Can we extend the year end to July 2012, put in a ct return to January 2012 showing the profit of 300k and then after July put in another ct return for Feb to July showing the loss and carry it back to January 2012 to offset?


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29th Jun 2012 12:12

The 17 month period will therefore show no profit / no loss, or close to it.

The no profit /no loss figure is then pro-rata so both the 12 month return and the 5 month return will show no profits.

You can extend the year to 17 months if you haven't extended the year end within the last 5 years.

If you have recently extended the year end your other option is to have the 12m period, have a short second period of 6 months , prepare the accounts for the 6m period quickly and carry the loss for the second period back against the profits from the first before the corporation tax on the first becomes due.

Classic tax planning!



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By 0098087
29th Jun 2012 12:19

Year end has been recently been changed so we have no problem there. So, i'll do them to July and then we can prepare two ct returns. Excellent. Cheers for your help!

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