The Extended Loss Carry Back measure announced at Budget 2021 allows businesses to make claims to carry back losses for a further two years than current rules allow. This temporary extension applies for losses in accounting periods ending between 1 April 2020 and 31 March 2022.
Claims over £200,000 must be made in a company tax return (CT600). Box 45 (claim or relief affecting an earlier period) on the return should be completed, and details of the carry back claims included in the computations that accompany the return and accounts.
There’s no need to submit amended returns for any earlier periods the extended relief applies to, as claims will be treated as amendments to those returns.
Claims below the £200,000 limit can be made outside of the company tax return. For how to do this, search ‘extended loss carry back’ and for more on trading loss claims, search ‘claim relief corporation tax trading losses’ on GOV.UK.
Speak to AJR & Co Ltd for further advice