CTM04590 - Corporation Tax: trading losses: relief against total profits: late claims

ICTA88/S393A (10)

HMRC has power under ICTA88/S393A (10) to extend the statutory time limit for claims under S393A ( CTM04580).

SP5/01 (see CTM97060 for the full text) sets out the HMRC approach to the exercise of this discretionary power. A decision to accept a late claim may be made by a Grade 6 Technical, Compliance or Case Manager, on their own authority, following the approach set out in the Statement. Cases where a late claim is pressed and the Grade 6 Technical, Compliance or Case Manager considers it should be refused, should be submitted to CT&VAT (Technical), using the template found by clicking the Technical Help button in the left bar of this manual, before formal refusal is made.

Paragraph 10 of the SP5/01 indicates that, in general, the HMRC approach is to admit late claims (and withdrawals of claims) which could not be made within the statutory time limits for reasons beyond the company’s control. The Statement gives examples of such reasons. Those examples are intended to illustrate matters that are beyond a company’s control. They are not intended to be an exhaustive list. Paragraph 11 gives some examples of matters that we would not regard as being beyond the company’s control.

Paragraph 12 of the Statement may apply even if the company cannot show that the reasons for the late claim were beyond its control. The company should have sent, with its application for the late claim or withdrawal to be admitted, a full explanation of the factors it wishes to be taken into account. If it has not done so, you should ask it to do so as part of consideration of the late claim. A late claim or withdrawal may be accepted if, taking account of all of the factors, it would clearly be unreasonable to refuse it.

You should not accept a late claim or withdrawal in any case where it is part of a scheme or arrangements to avoid tax or the payment of tax. Submit any such cases to CT&VAT (Technical) using the template found by clicking the Technical Help button in the left bar of this manual.

Follow the guidance at EM3905 - EM3906 where a late claim is made for an accounting period that is the subject of an investigation settlement involving interest and penalties. Relief is allowed only against the amount of the additional assessment.