COM50014 - Claims/reliefs: loss and non-trading deficits carry-back: Example
Example
The assessment for Accounting Period (AP) 01/04/2022 to 31/03/2023 show -
|
Income
from property |
£45,000 |
|
Trading
loss this AP |
(£5,000) |
|
Charge
before carry-backs |
£40,000 |
|
Trade
loss carried back from AP 01/04/2023 to 31/03/2024 |
(£12,000) |
|
Profits
chargeable at 19% |
£28,000 |
|
Corporation
Tax (CT) due |
£5,320 |
The resulting postings on the computer record which you can see in function VPPD (View Payment and Posting Detail) are -
|
Charge
before carry-backs (£40,000 at 19%) |
SAM
£7,600 |
|
Payment
(loss c/b from APE 31/03/2024 £12,000 at 19%) |
LOS
£2,280 (EDP 01/01/2024) |
If you make an assessment including a loss carry-back, the computer translates the carry-back into an amount of tax `paid'. This figure is the difference between the CT liability that would result from the figures in the assessment, if the relief for loss carried back was not present, and the CT payable taking the carry-back into account.
Please note that: The percentage rates used above for CT are subject to change and are based on prevailing rates of CT for the periods in question.