CTM92254 - Corporation Tax self-assessment (CTSA): the payment obligation: carry-back of trading losses or non-trading deficit - late payment interest - example 4
|Accounting period 1.1.94 to 31.12.94||Accounting period 1.1.96 to 31.12.96|
|CT profits||£10,000||Trade loss £10,000|
|Non-trade chargesNil tax payable||£10,000||ICTA88/S393A claim to carry back to accounting period ended 31.12.94. (No profits for the accounting period ended 31.12.95.)|
|Liability after carry-back becomes profit||£10,000|
|Less loss carry-back||£10,000|
The carry-back has no consequences for late payment interest. No additional amount of CT would have carried interest if the claim had not been made.
Note: COTAX will incorrectly charge interest in such a case, see (b) of CTM92420.