Business Tax- Claim Terminal loss relief?
Article ID
business-tax-claim-terminal-loss-relief
Article Name
Business Tax- Claim Terminal loss relief?
Created Date
10th March 2023
Product
Problem
IRIS Business Tax- Claim terminal loss relief for a LTD? tick box 45 on CT600
Resolution
To resolve this you will need to do the following;
1.Load the client and the period where the loss is showing and go to Client | View – remove the cessation date (If there isn’t a ceased date then go to step 4)
2. Edit | Losses – remove the carry back amount and remove the amount in less unavailable to carry forward.
3. Go back to Client | View – enter the cessation date
4. Edit | Losses – enter the loss in the ‘less loss carried back’ field. If you want to show the loss in a previous year where the loss needs to be claimed- then enter value in brought back field in the previous CTAP (that’s only for your internal book keeping)
5. Data Entry | Summary -repayment claim – Tick ‘for earlier period’. This ticks box 45 on the CT600
6. Add edit/note To explain the loss carry back. Then generate and submit this return – you do NOT need to submit the previous years tax return unless it has other edits etc.
If you get warning: (less) loss carried back cannot exceed 0. Check if the relevant period has a loss, if none then you cannot make this claim
If there is a ceased date and get (less) loss carried back cannot exceed 0– then first remove the ceased date. Then go to Edit-losses-remove figures under less utilized against total profit. Apply and now enter values in less loss carried back.
If there is a loss and no ceased date then follow this.
1.Client / view and check if a commencement date was entered
2. Go back to previous years/CTAP and check and update the losses to ensure they are correct as BT checks all the loss values in prior years are correct and if they are incorrect then it triggers the warning.
3. Once checked and corrected prior years. Now go back to the relevant CTAP period and enter the correct loss claim again
4. If you need to manually enter a loss – then go to edit and posting and create the loss under ‘trade expense allowable’-specific posting and enter loss value.
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