Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Company Taxation Manual

Corporation Tax self-assessment (CTSA): the payment obligation: carry-back of trading losses or non-trading deficit - late payment interest - example 1

Accounting period 1.1.94 to 31.12.94 Accounting period 1.1.96 to 31.12.96
CT profit £80,000, CT liability £20,000 Trade loss £100,000
Paid 1.1.96 (3 months late)  
Pays interest of £600 ICTA88/S393A claim to carry back £20,000 to accounting period ended 31.12.95 and £80,000 to accounting period ended 31.12.94

Liability after carry-back Nil.

The carry-back has no consequences for late payment interest. No additional amount of CT would have carried interest if the claim had not been made.