CTM90610 - Corporation tax self-assessment (CTSA): Claims and elections: Time limits

The general time limit for making a claim for relief is four years from the end of the accounting period to which the claim relates (FA98/SCH18/PARA55 - six years for claims made before 1 April 2010, subject to transitional provisions in SI2009/403 art 10).

However, any specific time limit applying for a particular claim over-rides this general time limit.

The accounting period to which a claim “relates” is the period in which the event giving rise to the claim occurs.

Example

• A Ltd has a trading loss for the accounting period ended 31 December 2001 and claims under ICTA88/S393A (1)(b) to set it off against profits for the accounting period ended 31 December 2000.
• The claim relates to the accounting period ended 31 December 2001 in which the loss occurred. ICTA88/S393A (10) contains a specific 2-year time limit, which over-rides the general time limit in FA98/SCH18/PARA55.
• The company must make the loss relief claim by 31 December 2003.