Losses on CT returns may be incorrect
If you receive a letter from HMRC about your corporation tax losses, don’t ignore it or you could end up overpaying. What’s going on?
An issue with corporation tax losses recorded on the CT600 form has been ongoing for some time. This may affect your company if you have reported losses in the following boxes:
- 805 and/or 810: UK property business losses;
- 830 and/or 835: non-trading losses on intangible fixed assets; and
- 850 and/or 855: management expenses.
It has been discovered that these boxes are sometimes showing different amounts than the tax computation. You may receive a letter saying that HMRC will use the computation figures. However, if you believe the CT600 is correct, you should contact HMRC on the email address included in the letter to explain why the CT600 figures should apply. Failing to do so could mean losses are underclaimed.
Related Topics
-
Don’t miss out on IHT exemptions
The Chancellor’s inheritance raid on small business owners and anyone who has pension savings means it’s more important than ever to take advantage of the lifetime gifts exemptions. What are they and when can you use them?
-
HMRC MTD ITSA webinar - worth a look?
Making Tax Digital will be mandatory for some traders and landlords next year. Ahead of this, the government is ramping up its guidance to help you get ready. What is the latest offering?
-
Annual increases to statutory compensation limits
The Employment Rights (Increase of Limits) Order 2025 will revise the compensation limits for certain tribunal awards and other statutory payments from 6 April 2025. What are the increases?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.