SolvedCTM92252 | Corporation Tax self-assessment (CTSA): the payment obligation: carry-back of trading losses or non-trading deficit - late payment interest - example 2
From HM Revenue & Customs · Company Taxation Manual
| Accounting period 01/01/2008 to 31/12/2008 | Accounting period 01/01/2010 to 31/12/2010 |
|---|---|
| CT profit £80,000, CT liability £20,000 | Trade loss £20,000 |
| Paid £20,000 on due date 01/10/2009 | CTA2010/S37, claim, as extended by FA2009/Sch 6, to carry back to accounting period ended 31/12/2008. (No profits for the accounting period ended 31/12/2009) |
| Calculation | |
|---|---|
| Liability for accounting period ended 31/12/2008 reduced to profit | £80,000 |
| Less loss carry-back | £20,000 |
| Profit chargeable to tax | £60,000 |
| Tax @ 25% | £15,000 |
£5,000 tax is repaid on 01/07/2011.
The carry-back has no consequences for late payment interest. No additional amount of CT would have carried interest if the claim had not been made.