Corp Tax - Chapter 14 Flashcards
Current Year Loss is a partial claim allowed?
No
Carry back claim is a partial claim allowed?
Yes
CB Claim - period less than 12m
Time apportion to earlier period.
Is CY claim before or after CB Claim
Before
Restrictions for CY and CB
Not available if outside of the UK.
Must be a commercial basis with a view to make a profit,
Extension to CB Claims dates
1 April 2020 - 31 March 2022
Extension FIFO or LIFO
LIFO
Extension - how many years
3 years
Extension loss restriction amount
- £2 million in total for all ‘2020 claims’, and
- a further cap of £2 million in total for all ‘2021 claims’
extension claim time limit
two years after the end of the loss-making
accounting period on the co. ITR.
De minimus limit
£200,000 - no CT Return
CF Losses - Any amount?
Yes
CF Claims date
Within 2 years of end of AP in which relief is claimed.
Streamed Losses
Small trade - against profits of same trade.
Restriction of CF Losses allowance
£5m
CF Maximum amount
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.
Terminal Losses - losses in final and PY
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.
Terminal Loss claim
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
