Temporary concessions made to reliefs and exemptions

Temporary acceleration of Corporation Tax loss relief

Note

This temporary measure is provided for by section 396D of the Taxes Consolidation Act 1997. 

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

It allows 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 must include some or all of the period 1 March 2020 to 31 December 2020. This means that accounting periods ending in 2020 and 2021 could be eligible for the relief.

Eligibility

The company must be fully tax compliant.

Companies will still be regarded as tax compliant if they:

Submitting a claim

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

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

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

Next: Capital Acquisitions Tax Business Relief