HMRC have advised that companies seeking Corporation Tax repayments following loss carryback claims will have their claims dealt with automatically within eight weeks if the repayment box is ticked on the CT600 return.

It was announced at Budget 2021 that there will be a new Temporary loss relief available to allow companies to carry back trading losses up to three years for losses incurred in 2020/21 and 2021/22.

  • It applies to accounting periods ending between 1 April and 31 March 2021 and 2022.
  • Claims are capped at £2m of losses per company and group.
  • Claims below £200,000 can be made outside of the Corporation Tax return.

Claims are subject to HMRC review; this will happen automatically if the repayment box is ticked on the CT600 return. Due to the high number of claims currently being submitted HMRC expect claims under the normal carry back rules to take up to eight weeks to be approved where the box has been ticked. However repayments under the temporary loss relief rules cannot be made until Finance Act 2021 receives Royal Assent. Based on previous years this is unlikely to be before mid-July 2021.

Agents who have filed returns without the repayment box being ticked may wish to contact HMRC to ensure their clients' claims are in the HMRC review and approval process and have not been overlooked.

Useful guides on this topic

Losses: Trading and other losses
When can a company offset its losses? What restrictions are there? How are loss claims made?

Company tax claim checklist
The time limit for most Corporation Tax claims and elections is two years from the end of the accounting period, which is the time limit for amending a Corporation Tax return (CT600).


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