Corp Tax - Chapter 14

Question 1

Current Year Loss is a partial claim allowed?

Answer 1

No

Question 2

Carry back claim is a partial claim allowed?

Answer 2

Yes

Question 3

CB Claim - period less than 12m

Answer 3

Time apportion to earlier period.

Question 4

Is CY claim before or after CB Claim

Answer 4

Before

Question 5

Restrictions for CY and CB

Answer 5

Not available if outside of the UK.

Must be a commercial basis with a view to make a profit,

Question 6

Extension to CB Claims dates

Answer 6

1 April 2020 - 31 March 2022

Question 7

Extension FIFO or LIFO

Answer 7

LIFO

Question 7

Extension - how many years

Answer 7

3 years

Question 8

Extension loss restriction amount

Answer 8

• £2 million in total for all ‘2020 claims’, and
• a further cap of £2 million in total for all ‘2021 claims’

Question 9

extension claim time limit

Answer 9

two years after the end of the loss-making
accounting period on the co. ITR.

Question 10

De minimus limit

Answer 10

£200,000 - no CT Return

Question 11

CF Losses - Any amount?

Answer 11

Yes

Question 12

CF Claims date

Answer 12

Within 2 years of end of AP in which relief is claimed.

Question 13

Streamed Losses

Answer 13

Small trade - against profits of same trade.

Question 14

Restriction of CF Losses allowance

Answer 14

£5m

Question 15

CF Maximum amount

Answer 15

The maximum amount of carried forward losses which may be offset against profits
is the lower of:
i. unrelieved carried forward losses; and
ii. deductions allowance plus 50% × (unrelieved profits – deductions allowance).
The maximum relief is therefore:
£5m + 50% × (unrelieved profits – £5m)
‘Unrelieved profits’ means total profits less any current year loss relief.

Question 16

Terminal Losses - losses in final and PY

Answer 16

If a loss arises in both the final and penultimate accounting periods, deal with the loss of the penultimate period first and then the loss of the final accounting period.

Question 17

Terminal Loss claim

Answer 17

The claims for relief are under s.37 CTA 2010 and so, as usual, must be made in the two years following the accounting period(s) in which the terminal loss is made