Temporary concessions made to reliefs and exemptions

Temporary acceleration of Corporation Tax loss relief

Note

This was a temporary measure provided for by section 396D of the Taxes Consolidation Act 1997. Accelerated loss relief under section 396D is no longer available due to time limits provided for in the legislation. The last possible date by which a claim could be made under section 396D was 30 May 2022.

A temporary acceleration of Corporation Tax loss relief was available to companies affected by the COVID-19 pandemic. 

It allowed companies:

• to estimate their trading losses for certain accounting periods
• and
• to carry back up to 50% of those losses against chargeable profits of the preceding accounting period on an accelerated basis.

The accounting period in which the loss was incurred had to include some or all of the period 1 March 2020 to 31 December 2020. This meant that accounting periods ending in 2020 and 2021 could have been eligible for the relief.

Eligibility

The company had to be fully tax compliant.

Companies were regarded as tax compliant if they:

• qualified for tax debt warehousing
• had a Phased Payment Agreement (PPA) for non-COVID-19 tax debt.

Submitting a claim

The Form CT1 for the preceding accounting period, for which the estimated losses were being carried back had to be filed. The claim for accelerated loss relief could then be made by amending the Form CT1 through Revenue Online Service (ROS).

The Form CT1 included a field in which a company could make an interim claim under section 396D. The ‘tick the box’ part of a section 396D claim had to be used to make a declaration that the:

• claim was an interim claim under section 396D
• company had incurred or reasonably expects to incur a non-relevant trading loss or relevant trading losses in the specified accounting period
• company was tax compliant on the date the interim claim was made.

Next: Capital Acquisitions Tax Business Relief