COM50050 | Claims/reliefs: loss and non-trading deficits carry-back: non-trading deficit c/back & repayment interest

A non-trading deficit carried back to an earlier Accounting Period (AP) has repayment interest consequences for the receiving AP and therefore needs special treatment in COTAX.

A claim to carry-back a non-trading deficit may result in a repayment of CT or Income Tax for the earlier AP to which the relief is carried back.

In such circumstances, s826(7C) Income and Corporation Taxes Act (ICTA) 1988 provides that repayment interest is only payable from the due and payable date of the later AP in which the non-trading deficit was incurred.