Extended loss carry-back for companies
The extended loss carry-back measure announced in the Spring Budget 2021 and now featured in Finance Act 2021 enables companies to make claims to carry back losses for a further two years beyond the normal 12 month period. HMRC has provided more information on the claims process for companies. The procedure for nominating an appointed company in respect of the extended loss carry-back provisions for groups has also been set out in regulations.
Claims that exceed a de minimis of £200,000 must be made in a company tax return. Box 45 (claim or relief affecting an earlier period) on the CT600 should be completed and details of the carry back claims included in the computations that accompany the CT600 and accounts.
There is no need to submit amended returns for the earlier periods to which the extended relief applies as the claims will be treated as amendments to those returns. Amended returns for these periods will be rejected for online submission as, in most cases, they will be out of time for amendment. Claims below the de minimis limit of £200,000 may be made outside of the company tax return.
The guidance has been updated as follows:-
