Corporation tax loss reform – have you already submitted corporation tax returns affected?

Nov 06, 2017

A recent Stakeholder’s Forum meeting with HMRC discussed corporation tax loss reform from 1 April 2017 and what action a company may have to take if it is has already submitted a corporation tax return and computation for an accounting period ending after the change which is affected by the changed legislation.

The proposed legislation which will change the rules for corporation tax loss reform is contained in the Finance (No. 2) Bill 2017 which is currently making its way through Parliament. Once the Bill receives Royal Assent, this legislation will have retrospective effect.

HMRC’s initial advice is that if a company has submitted a corporation tax return and computation for an accounting period ending after 1 April 2017 which is impacted by the retrospective coming into effect of the changed legislation, it is likely that such returns and computations will have to be resubmitted to HMRC.

The potential impact of a second submission on the window during which HMRC can open an enquiry has not yet been addressed by HMRC. We’ll update you when we have more on this story.

HMRC have also now published the second tranche of draft guidance on the revised legislation.