CTM92252 - 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)

Calculation
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.