Carry back a loss to reduce tax liability in Corporation Tax

Carry back a loss

Select
Accounts
and then
Losses, Deficits, and Excess Amounts
in the year in which the loss arises.
Enter the full loss you want to carry back in the
Carried Back
column. This amount is automatically entered in the
Brought Back
column in the previous year.
In the previous year, enter the amount that is being used in the
Utilised in Period
column

Enter losses that arose before the company is in Corporation Tax

Refunds

You will not need to submit an amended return for the year you are carrying the loss back to, as the refund can be claimed on the return in the year the loss arises.
A refund will not be shown in the year in which the loss arises, but will appear in any year in which a loss has been brought back (provided the tax paid has been entered). To enter tax paid:
Select Tools and then Payments.
On the Payments tab, select Tax payment due.
Select Add payment and enter the appropriate information.
No refund information will be posted to the CT600 for the year in which the loss arises because the company is not strictly due a refund. If you wish to complete these details manually:
On the CT600 screen, go to the Refund section.
Right-click and select Enable Editing.
Enter the appropriate information.
The CT600 in the year in which the loss arises should automatically indicate that a refund is due in respect of prior year. If it does not, do the following:
Select Company, Company Details, and then Other Information.
Tick the
For an earlier period
box in the repayment claim section.
We recommend that you go to Accounts, and then Additional Information and add a note that says something to the effect of "The loss [amount] has been carried back to the previous period. The company looks forward to receiving a payment of [amount] as soon as possible."

Using a brought forward loss