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 |
| CT liability | Nil |
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.
