COM53120 - Claims / reliefs: other reliefs: S458 CTA 2010 (formerly S419(4) ICTA 1988) - claims

Section 455 CTA 2010 (formerly S419 ICTA 1988) liabilities for a CTSA AP must be included in a company’s CT600 tax return. The S455 tax forms part of the calculation of tax payable (Word 32KB) by the company under Paragraph 8 Schedule 18 FA 1998.

A claim to relief under Section 458 (formerly S419(4)) is a claim for relief against the original tax charge for the AP in which the loan was made. The time limit for the claim is six years from the end of the financial year in which the loan is repaid, released or written off.

Where the loan is made during a CTSA AP, the tax charge falls under the CTSA rules and is included within the self assessment (Word 28KB) tax charge for the period. S458 claims in respect of such loans have to be made in the CTSA return, or by amending the CTSA return, for the AP in which the loan was made, while that is still possible.

Once the time limit for amending the self assessment has passed, claims have to be made and dealt with in accordance with Schedule 1A TMA 1970. (S458(6) CTA 2010).

Where the claim is made in, or by amending, a CTSA company tax return, and relief is due at the time the claim is made, the relief is given by reducing the tax payable for the AP. Otherwise, relief is given by discharge or repayment under the Schedule 1A rules.

Note: Where the S455 charge arises for a CT Pay and File AP, CTSA makes no difference to the way relief is given, even if the loan is repaid, released or written off in a CTSA period. S458 claims to relief in respect of loans made in CT Pay and File APs are not within the CTSA regime or dealt with by COTAX. Such claims should be handled using the SAFE computer system. Relief will continue to be given against the original tax charge by discharge or repayment. For further guidance, see COM23130.

For a list of forms relevant to this subject, see COM53011.

For legislation applying to this subject, see COM53013.