Corp Tax - Chapter 6

Question 1

HMRC INTEREST

Answer 1

HMRC charge interest at an interest rate calculated as bank base rate plus 2.5%.
The interest rate is currently 2.6%.

Question 2

When does repayment interest start

Answer 2

Repayment interest runs from the later of
the normal due date and the actual payment date.

Question 3

Loss carry back repayment

Answer 3

it is treated as tax repaid for the accounting period of the loss unless the repayment arises in respect of an accounting period that falls wholly within the 12 months prior to the one in which
the loss arose.

Question 4

Carry back reduces amount of unpaid tax

Answer 4

, interest will cease to run from
the due date of the period in which the loss was made for the amount of tax
unpaid that the carry back negates