Claiming loss relief

Last modified 10:20, 23 Oct 2015

Overview

The Loss Utilisation window shows each type of loss available to the company.  The window is meant to show the flow of losses for the company in the AP from:

  • amounts brought forward from the previous AP
  • amounts arising in the AP and brought back from a later AP
  • utilisation in the AP and finally
  • losses carried forward to a later AP

You can change the view of the Loss Utilisation window for each client by using the Select loss types menu.  This restricts the loss window to to show only those type of losses that you request.  You can amend this window as many times as you require.

Use the navigation bars to view all available loss relief data entry fields as all of the loss relief fields cannot be shown on the screen at the same time. The data entry fields change colour from white to  yellow on an alternating basis in the screen.

Claiming loss relief

In the Tax Planning > Loss Utilisation window, some of the losses are automatically shown and do not require manual data entry. You can choose to complete all the fields in this window, or enter a few and complete the entries later.

  1. Click the Loss data entry fields and enter the amounts you wish to claim as appropriate.
  2. To see the maximum data entries for certain fields click the Show maximum available option.
    To hide them, click Hide maximum available.
  3. If an incorrect amount of loss relief is claimed, the system displays a validation.
  4. Warning messages are shown when certain types of loss relief is claimed.
  5. To view a warning or validation message, place your cursor over the warning triangle. The message is also displayed in the Summary section at the bottom of the window.
  6. To view how the losses have impacted on the PCTCT for the current AP, click Show period memorandum.
    Click Hide period memorandum to hide the losses.

Notes

  • S458 claim/set against non trading profits is only available for NTLR deficits.
  • Untaxed income from investments is only available for Management Expenses.
  • B/back refers to losses from a later AP that are brought back to the current AP and utilised in the current AP.
  • Carried Back refers to losses in the current AP that are carried back for offset against PCTCT in an earlier AP.
  • Charitable donations has been included even though it is not a loss to show how much of the charitable donation attracts tax relief in the current AP and also how much may be surrendered as group relief.
  • The figures of losses brought forward from an earlier AP are shown as at the date the POA was created.  If there are any adjustments to the losses in a prior AP after the POA has been created then these changes will not be reflected in the current AP. If you have changed these then use the Loss Bfwd Override to make any such adjustment to the figure of losses brought forward from earlier years in the current AP.
  • It is possible to set the Loss Bfwd to nil, if the appropriate Task Permission has been set for the users within Maintenance>Security>Task Permissions.  The permission is Tax Return - Can Edit Loss Bfwd contained within the Group Description>Tax Return within the Product>Corporation Tax.
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