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CT600 Property Company assistance

How to complete CT600 Property company with Non-trading loan relationship and claiming relief/losses

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Preparing my first CT600 for a property company (no other trade) that received rental income and incurred mortgage interest.

I've got the ultimate tax liability correct but as its my first property CT600 it would be useful to have some reassurance that I've completed all the boxes correctly and claimed the relief/loss in the correct way, or if not then where I'm going wrong. I've googled extensively, read the CT600 guide (and associated guides) and similar questions on here, so if anyone is able to send me a suitably anonymised CT600 and computations for a similar company so that I can compare that would be ever so helpful, please PM me if so.

But, in summary, the company had say £80k rental income, £30k mortgage interest, profit of £50k. My understanding is that:

  • There would be £nil trading turnover (box 145) and £nil trading profits (box 155)
  • There would be £80k income from property business (box 190 and 235), as the £30k interest would not be deducted from this.
  • The £30k loss (deficit) from the non-trade loan relationship would be shown at boxes 275, 295 and 795
  • The £30k adjusted Case I loss (£50k profit per accounts, less £80k income from land & buildings) would be claimed against the property income (general profits) of £80k, reducing the profits chargeable to CT down to £50k (boxes 300 and 315)

I use BTC and complete the property supplementary schedule. BTC seems happy with the computations but I'd prefer to fully understand if it's correct or not.

Hope that all makes sense!

Replies (3)

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By Summerjosh
22nd Jan 2020 15:30

This looks good to me

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By peterhock
27th May 2020 14:26

I too am preparing my first property company CT600, with no other trade. Can someone comment that if a mortgage is a non-trade loan, whether the loss (deficit) from the non-trade loan relationship should be shown at box 260 (non-trade deficits) or at box 275 (trade losses), the latter as originally proposed and later verified by the reply. I agree Box 795 is for non-trade deficits but question whether there should be a trading loss. Or is there some reason why this treatment was used?

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Replying to peterhock:
Hallerud at Easter
27th May 2020 14:50

I agree with you. Re Rental boxes 190 then 235 re total, re loan relationship boxes 260 then 295 re total, but also 795

The earlier box 275 reference to trading losses to me looks incorrect.

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