HMRC has reminded ICAEW that ‘de-minimis’ extended loss carry-back claims relating to no more than £200,000 of losses should be made by companies using an online form, rather than on a tax return, to reduce the chances of delays to any related tax repayments.
Corporation tax trading losses, arising in accounting periods ending between 1 April 2020 and 31 March 2022, can be carried back for up to the three years prior to the period of the loss. Claims can be made as soon as the extent of the loss has been established. The normal rules allow trading losses to be carried back one year without restriction.
Standalone companies and group companies with trading losses capable of providing relief up to a maximum of £200,000 may make a claim in respect of a relevant accounting period, as soon as the accounting period in which the loss occurs has ended, providing the loss can be quantified appropriately. This means that such ‘de minimis’ claims can be made without the company having to wait until it submits its company tax return.
The online form requires information such as the company’s unique taxpayer reference, company name, agent code (if applicable), start and end dates of the loss-making accounting period, amount of loss, dates of accounting periods to carry the loss back to and the relevant amounts, and management accounts in PDF format.
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