Corporation Tax self-assessment (CTSA): the payment obligation: carry-back of trading losses or non-trading deficit - late payment interest - example 2
|Accounting period 01/01/2008 to 31/12/2008||Accounting period 01/01/2010 to 31/12/2010|
|CT profit £80,000, CT liability £20,000||Trade loss £20,000|
|Paid £20,000 on due date 01/10/2009||CTA2010/S37, claim, as extended by FA2009/Sch 6, to carry back to accounting period ended 31/12/2008. (No profits for the accounting period ended 31/12/2009)|
|Liability for accounting period ended 31/12/2008 reduced to profit||£80,000|
|Less loss carry-back||£20,000|
|Profit chargeable to tax||£60,000|
|Tax @ 25%||£15,000|
£5,000 tax is repaid on 01/07/2011.
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.