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How do you claim terminal loss relief on CT600

Have a terminal loss and cannot fathom out how to make the claim on the CT600.

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Have a terminal loss and cannot fathom out how to make the claim on the CT600.
The HMRC site states you can do it but as usual offers no indication of how

Would be grateful for any helpful advice

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RLI
By lionofludesch
01st Jul 2021 22:09

A letter's good.

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By frankfx
01st Jul 2021 22:51

https://www.gov.uk/guidance/corporation-tax-calculating-and-claiming-a-loss

How to claim for a trading loss to be carried back, or amend a claim
You can make a claim to carry back a trading loss when you submit your Company Tax Return for the period when you made the loss.

You can make your claim in your return or in an amendment to the return, as long as you’re within the time limit to amend it.
********* You can also make your claim in a letter. *********

If you’re making a claim in your return that reduces your Corporation Tax liability for an earlier period, you must make sure you have put an ‘X’ in the appropriate box on the CT600 form.

A claim should be made within 2 years of the end of the accounting period when you made the loss. Your claim should include:

the name of your company or organisation
the period when the loss is made
the amount of the loss
how the loss is to be used

If you send your claim separately, send it to HMRC.

You can amend your claim in the same way as you amend your return.

If HMRC does not carry out a compliance check into your return or stand alone claim, or any later amendment, then the amount of the loss becomes final. HMRC can ask about the usage of the loss in a future return (for example, to check whether the same trade is still being carried out).

HMRC STAFF are paid to perpetuate communications that require sooooooooooo much time to find the solution............. ************** above, spot it?

Thanks (1)
Replying to frankfx:
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By bstock
02nd Jul 2021 08:35

Thanks frankfx

100% agree with the HMRC STAFF point!

Still not crystal clear on how to complete it but I'm sure I'll work it out.

As the claim will result in claiming tax back from the previous 2 years, providing I x the appropriate box, do I also have to submit amended returns for those years or is the system clever enough to work it out by itself?

Tend not to take anything for granted with HMRC :-)

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Replying to bstock:
RLI
By lionofludesch
02nd Jul 2021 09:19

bstock wrote:

Thanks frankfx

100% agree with the HMRC STAFF point!

Still not crystal clear on how to complete it but I'm sure I'll work it out.

As the claim will result in claiming tax back from the previous 2 years, providing I x the appropriate box, do I also have to submit amended returns for those years or is the system clever enough to work it out by itself?

No, you're not amending returns. These are stand alone claims.

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By Winnie Wiggleroom
02nd Jul 2021 09:11

file the return, write a letter to CT services, usually does the trick

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By Michael Davies
02nd Jul 2021 12:02

Don’t hold your breath.

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Replying to Michael Davies:
By kenny achampong
02nd Jul 2021 13:35

There is some hope on the horizon, they did answer a rebate letter that I had to re-send. It took 6 months in total but it arrived eventually.

Judging by the lost post I'm stumbling accross, I reckon they might have thrown out about 6 months worth, a lot since/around last December seem to have gone awol.

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Replying to Michael Davies:
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By frankfx
02nd Jul 2021 13:40

Michael Davies wrote:

Don’t hold your breath.

This is what Tax Calc say

How to claim loss relief on a CT600

HMRC claims that as long as box 45 for 'Claim or relief affecting an earlier period' is ticked on the current year return, you should not need to re-file the amendment for the earlier year.

This being said, customers have previously reported that although this box is ticked, the repayment has not been issued and therefore an amendment of the earlier year, or a follow up letter was required to progress the repayment.

How you make the claim will depend on how far back you wish to carry back the loss.

For more information on timescales of filing amendments, please see the article for What tax years can I file online?

Corporation Tax
Filing Deadline and Online Filing Window

Original corporation tax returns should usually be filed within 12 months of the company accounting period end to avoid late filing penalties and interest. You can file original corporation tax returns online after the filing deadline, for periods going back to 2013/14 (that we are aware of). These will still usually incur the late filing penalties and any interest chargeable.

Amended corporation tax returns can be filed online within 12 months of the original filing deadline.

As the original filing deadline is is normally 12 months after the accounting period end, you will usually have 2 years from the accounting period end to file an amended return.

Once this submission window has closed, an amended return has to be filed by paper.

don't hold your breath ........... send a letter , recorded and tracked.

Enjoy your unbillable time in the Post Office Q?

OP

Which approach are you going to choose?

Client may be entertained by the lack of certainty when dealing with a seemingly simple compliance tax task.

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By thomas34
02nd Jul 2021 18:39

I've never understood why one would opt for the letter route. I've successfully always amended earlier returns (subject to the reasonably generous time limits) and recall that there is a box to tick which relates to losses relieved from later profits.

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