Corporation Tax self-assessment (CTSA): the payment obligation: carry-back of trading losses or non-trading deficit - late payment interest - example 2
|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 £20,000|
|Paid £20,000 on due date 1.10.95||ICTA88/S393A claim to carry back to accounting period ended 31.12.94. (No profits for the accounting period ended 31.12.95)|
|Liability for accounting period ended 31.12.94 reduced to profit||£80,000|
|Less loss carry-back||£20,000|
|Profit chargeable to tax||* * *|
|Tax @ 25%||£15,000|
£5,000 tax is repaid on 01.07.97.
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.