CTM90160 - CTSA: introduction: features from
There are also some important differences between CTSA and ITSA,
all of which are inherited from CTPF:
- Under CTSA, companies continue to be
chargeable to CT rather than IT.
- CT continues to be charged in a single
amount on the sum of 'profits'. This means income, computed under
the same principles that apply to IT, and chargeable gains,
computed under the principles that apply for CGT.
- Tax under CTSA continues to be charged for
accounting periods. The length of an accounting period can vary
with circumstances, and the company controls the end date, though
no accounting period can exceed twelve months. By contrast, IT is
always charged for the tax year ending 5 April.
- CT rates and limits are imposed for
‘financial years’, which begin on 1 April and end on 31
March following. (For example, the financial year 1998 is the year
from 1 April 1998 to 31 March 1999.) By contrast, IT is charged for
each tax year beginning on 6 April.
- Companies cannot opt for Revenue
calculation of their tax, whereas individuals can do so.
- There continues to be a single, fixed due
date for payment of CT. This is nine months and one day after the
end of the accounting period (subject to the quarterly instalment
payment regime for large companies).
- There are no surcharges for tax paid late.
The CTPF pattern of late payment interest on tax paid late and
repayment interest on overpayments of tax is retained.
- The notice to deliver a return continues
to require the submission of accounts and computations as well as
the return form.
- The penalty regime for late returns is
virtually unchanged from CTPF. The regime is rather different from
that applying to IT cases. In particular, under CTSA an automatic
tax-related penalty can be based upon a Revenue determination of
the tax charge.
- Carry-back reliefs will continue to reduce
the tax liability for the relevant earlier years, with interest
consequences that may be tied to the due date for the later
accounting period. However, the abolition of ACT from 6 April 1999
and the general restriction of trade loss carry-backs to one year
will make carry-backs less common in CTSA than in CTPF.