Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

COTAX Manual

HM Revenue & Customs
, see all updates

Claims / reliefs: loss and non-trading deficits carry-back: non-trading deficit c/back & repayment interest

A non-trading deficit carried back to an earlier AP has repayment interest consequences for the receiving AP and therefore needs special treatment in COTAX.

A claim to carry back a non-trading deficit may result in a repayment of CT or Income Tax for the earlier AP to which the relief is carried back.

In such circumstances, S826(7C) ICTA 1988 provides that repayment interest is only payable from the due and payable date of the later AP in which the non-trading deficit was incurred.