CTSA: the filing obligation: Delivery of return: Must include SA
You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.
FA98/SCH18/PARA7 provides that companies must include an SA of the amount of tax payable for an accounting period in their company tax return.
Note: Unlike ITSA there is no facility for a Revenue calculation of the tax payable. Every company must include its own calculation with the return, no matter how early they deliver it.
For this purpose you regard a company tax return received as a return for an accounting period, if:
- the period is treated as an accounting period in the return,
- the period is not longer than twelve months.
FA98/SCH18/PARA8 sets out, in a number of steps, how a company should calculate its SA of tax payable. Unless otherwise provided, any reference in Schedule 18 to the amount of tax payable by a company for an accounting period refers to the amount shown as payable in the company’s SA.
Tax payable for an accounting period is calculated as follows:
Calculate the CT chargeable.
- Take the amount of the company’s profits chargeable to CT for the period, and
- apply the rate or rates of CT applicable to the company, other than the restitution interest rate.
Give effect to any reliefs or set-offs available against CT.
- Marginal relief for companies with small ring fence profits, etc.
- Corporate venturing scheme: investment relief.
- Community investment tax relief.
- Double taxation relief.
- Advance CT.
- Add any amounts assessable or chargeable as if they were CT (reduced by any reliefs specific to those amounts):
- any amount due under CTA10/S455 (1) or S464A (tax on a loan or, advance or benefit made by a close company to a participator)
- any sum chargeable under CTA10/S269DA (surcharge on banking companies) or S330(1) (supplementary charge on ring fence trades)
- any sum charged at Step 5 of TIOPA2010/S371BC(1) (tax on profits of a controlled foreign company).
- any amount of the bank levy chargeable by virtue of FA11/SCH19/PARA50 or 51. If added, treat any deductions made at Step 4 below as made from all other amounts before being made from the amount of bank levy.
Deduct any amounts to be set off against the company’s overall tax liability:
- IT borne by deduction.
- ACT paid in respect of FID.
Calculate the CT chargeable on any profits of the company that are charged as restitution interest.
- Find the amount in respect of which the company is chargeable for the period under the charge to CT on income under CTA10/Part 8C.
- Apply the restitution payments rate in accordance with CTA10/S357YK(1).
The amount of tax payable for the accounting period is the sum of the amounts resulting from Steps 1-4 and Step 5.
A company must make the SA on the basis of the information in the return and after taking into account any reliefs or allowances.