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.