Companies claiming relief of £200,000 or less, through the extended three-year loss carry-back relief should use the online form in order to reduce the risk of a delay in any repayment due.
In response to COVID-19, the Loss relief carry-back rules were extended.
- Trading losses incurred in FY2020 and FY2021 (accounting periods ending between 1 April 2020 and 31 March 2022) can be carried back up to three years instead of the usual one year.
- Whilst there is no cap on the amount carried back 12 months, the maximum amount of carry-back against the profits of the second and third year is £2 million (for each of the Financial Years 2020 and 2021).
- A claim is made on the company's tax return.
An immediate claim for relief can be made as soon as the accounting period has ended and the loss quantified, provided that the claim is below the de-minimis limit of £200,000.
An online form must be completed to make an immediate claim. You will require:
- Unique Taxpayer Reference (UTR).
- Company name.
- Agent code (if applicable).
- Start and end dates of the loss-making accounting period.
- Amount of loss.
- Dates of accounting periods to carry the loss back to and the relevant amounts.
- Management accounts as a PDF if a tax return has not been completed for the loss-making accounting period.
The form can be accessed here.
Useful guides on the topic
Losses: Trading and other losses
When can a company offset its losses? What restrictions are there? How are loss claims made?
Companies: compliance review
Company accounts, tax return and payment compliance checklist
Companies & shareholders: Year-end tax planning review
Year-end (shareholder) tax review and planner