If you have trading losses in the current accounting period, you may be able to carry back those losses to a previous tax year. Here’s how you can do it:
Step 1: Update the Current Return
- Make sure to update the box labeled ‘Losses carried back to a previous AP’ with the relevant loss amount in the current period’s return by Corporation Tax > Select Client > Edit Return/Create Return > Quick Entry > Losses, Deficits & Excess Amount Calculator
Step 2: Amend the Previous Return
- Create an amended return for the previous accounting period and update the box labeled ‘Loss brought back from a future AP’ with the corresponding value of the loss.
- Ensure that Box 40 is selected in the main form of the amended return to indicate that you are making this claim.
- Enter the carried-back loss amount in Box 275 and tick Box 280 to confirm that you have made this adjustment correctly.
Step 1: Update the Current Return
Step 2: Amend the Previous Return
Please review the CT600 computation to confirm the figures, and do not hesitate to inform us if you encounter any issues.