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David Warner

Corporation Tax Loss Carry Back denied due to inadequate claim in Sage CT computation

Posted By

I have recently had two occasions where a company has made a loss in the current year and a claim is made to carry the loss back to the previous year - box 45 marked on CT600 Claim affecting earlier year, bank account details provided for repayment to be paid to, and part B2 Trade Losses on the computation says "Relieved in Previous Period - CTA 2010 s37(3)(b)" and shows the amount of the loss to be carried back.

The return and computation has been submitted to HMRC, submission accepted, then the client does not receive the repayment.  On chasing it up with HMRC in both cases they have been referred to technical officers and they have stated that the return and computation does not make it clear enough that there is a claim for relief in the previous period and no action has been taken on the gounds that the computation does not specify a loss carry back claim.

Our counter argument is that the computations provided by Sage are pre-agreed formats with HMRC but apparently when the technical officer has decreed the claim in computation is inadequate the only recourse is to write to HMRC.

Extremely frustrating and I wonder if anyone else has come across this issue and how they have resolved the issue. 

  • 0

    Hi David,

    Thanks for using Sage City.

    This query has come through to ourselves a couple of times regarding carrying back losses against previous periods. In Sage Corporation Tax the box to signal that this return is affecting an earlier period claims and reliefs is found in the Tax Return Disclosure Information/ Return Information / Repayments, estimates and group membership, the first box should be ticked for it to notify HMRC that its a carried back relief or claim.

    Regards,
    Dee
    Sage UKI

  • 0 in reply to aadil dada

    The box "Tax Return Disclosure Information/ Return Information / Repayments, estimates and group membership, the first box should be ticked for it to notify HMRC that its a carried back relief or claim". In our case this box was ticked - this completes box 45 on P1 of the CT600 but HMRC still suggest inadequate disclosure on the CT Comps of a loss carry back claim

     

  • 0 in reply to David Warner

    Hi David,

    Thanks for the reply, 

    Did HMRC advise of what they would say is adequate enough disclosure, any specific boxes as we can then take it away and see what has changed with HMRC disclosures.

    Regards,

    Dee

    Sage UKI

  • 0 in reply to aadil dada

    Sadly not, my argument with them in this inadequate point is that the returns and comps are I assume in a format agreed between HMRC and Sage before they are released to customers.  I think it might be more an inadequacy within HMRC

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