CTM90630 - Corporation tax self-assessment (CTSA): Claims and elections: Affecting more than one accounting period

FA98/SCH18/PARA58 sets out the rules for claims involving more than one accounting period. This happens when:

• the event giving rise to the claim occurs in one accounting period (the period to which it “relates”), and
• it affects one or more other accounting periods (whether or not it also affects the period to which it relates).

Example

Company B makes a trading loss in the accounting period ended 31 December 2019 and carries this back to set against profits of the accounting period ended 31 December 2018.

The claim relates to the accounting period ended 31 December 2019. It also affects the accounting period ended 31 December 2018.

The rules are basically the same as those for a claim affecting only one accounting period. If a company makes a claim or election:

• that relates to or affects an accounting period for which it has already made a return, or
• it could make or give effect to the claim by amendment of that return

Paragraph 58 (2) says you must treat the claim or election as an amendment of the return.

The provisions that apply to amendment of returns generally apply to a Paragraph 58 (2) amendment, see CTM93300.

Paragraph 58 (3) applies the rules in TMA70/SCH1A if, and to the extent that, a company cannot make a claim in a return or amended return. You then have to give effect to the claim by discharge or repayment, see CTM90635.