April 2024 United Kingdom

1.191

1.032

1.002

There are currently two places on the Corporate interest restriction - adjustments sheet in a company file where the user must enter interest reactivated or restricted prior to a company joining the group. The first is in the main Interest restriction b/f section at the top, the second is in the A+B-C+D-E (Restricted interest available for reactivation) section towards the bottom of the sheet. We have now linked the two sections together.

This change has been made for FY22 and FY23.

Interest allowance for the originating period (i.e. "brought forward") is available in the receiving period, only when a full interest restriction has been filed for the originating period, the receiving period and any intervening period. We have added a selector to the bottom of the Interest allowance carried forward sheet to stop interest allowance from automatically being "used" in situations where a full interest restriction return has not been filed.

These changes have been made for FY21, FY22 and FY23.

Validations have been added to the CIR group of sheets to ensure that all fields required for a successful submission are completed.

These changes have been made for FY22 and FY23.

New rows have been added to the Loan relationship and derivates sheet to deal with the scenario in a REIT where less than the full amount of the restriciton has been allocated to the Property Rental Business. These new rows allow the deemed tax-interest income and deemed tax-interest expense to be brought into account as per s452(6) (Step 5).

A change has also been made to the Corporate interest restriction - adjustments sheet to allow an amount of restriction greater than the net tax-interest expense (within a single category of net tax-interest expense) to be allocated to the residual business in the scenario above. When the trade is set to a "Propery rental business (tax exempt)" and there is a restrictiom in the period, the validation to prevent an over allocation now switches off.

The changes have been made for FY22 and FY23 files.

CT600 box 760 now includes SR 50% FYA expenditure.

Various CT600 changes and corrections including:

Validations updated to ensure CT600B is developed when required by HMRC.

Various updates made with regard to efiling as follows:

Small updates for Full expensing, Super deduction, SR allowance and Special rate FYAs as follows:

We have updated the main pool and special rate pool for 2022 and 2023 files so that the small pools allowance is not automatically applied if the remaining balance is £1,000 or under. The normal WDA will continue to be applied unless a claim for the ""Small pools under CA2001 s56A"" cell at the bottom of the sheet is completed with the amount you want to claim.

We have made a number of changes to the layout and display of the transfer of trade sheets for 2023 files onwards. We have tried to simplify the layout of these sheets to make them more understandable, and ensure that the transfer of trade in and transfer of trade out sheets are as similar as possible to aid comprehension. We have added in some further information to the sheets where we thought this would help users understand the flow of the data.

Additionally, we have made some corrections to the Transfer of trade sheets including:

As part of these changes we have also looked at the loan relationship sheet and made some changes to that sheet. We have added an extra column called

Reallocation between periods

. This column only shows in multi periods, and means you can reallocate amounts between the periods if they need to i.e. if there is a cessation of trade and they want the loan relationship amounts all to be in the first period.

The capital allowance summary has been updated so that balancing charges and balancing allowances on "Other allowances" are shown separately, whereas previously these were netted off.

Updates made to the software to update certain references to Special tax cites rather than Freeport or Investment zone.

Warning added to the group file to develop the Group deductions allowance transfer sheet when there are amounts to be pushed down.

The group module has been updated to ensure all capital allowances flow to the group module capital allowances summary sheet.

Changes to the group RDEC sheet to help ensure claims do not exceed the correct amounts and make the detail easier for the user to follow.

Switches added to group module to allow user to exclude individual entities from the REIT financial statement sheet.

The group module has been updated so that where a company has overlapping periods with the group, each period will show in the group module. This may mean that you have to manually review the figures to ensure the correct proportion is included for your purposes. A review note has been added to all the "A" sheets in the group module to remind users of this.

If the selector

Group module - within simplified arrangements?

is set to

Yes

on the Permanent information sheet, the total group relief pushed down from the group module will now appear on one row in the Group relief claimed/surrendered sheets in the entity files. You will then need to add in your own suitable "

Name

" and "

UTR

" to that row in order to satisfy e-filing requirements. Previously, all the individual details (name, tax reference etc.) for each company that was claiming/surrendering group relief was pushed down from group to the entity files, but that level of detail is not required if the group is under a simplified group relief arrangement. This change has been made for 2022 and 2023 files for both group relief of current period and carry forward losses.

The

Losses and surrenderable amounts

sheet [P7] has been updated so that the the maximum amount of section 105 losses available to surrender correctly takes into account amounts already offset against total profits.

Warning added to group module to warn the user when Group deductions allowance has been updated at group level but not within the entity.

Claims added to allow users to carry forward non trading deficits, brought forward, without set off in the current period.

Ensured the Hire Cap restriction is calculated correctly and the correct adjustments are made to the company profits.

Hire cap restriction and completion of the CT600 - We have been pressing HMRC for some considerable time to provide detail on exactly how the CT600 should be completed when claims are made to utilise the hire cap restriction against total profits. We have finally received a detailed response from HMRC, but we did not receive this soon enough to be able to include the required changes in this update. We will include the required changes in a future update. If you face this scenario in the meantime, please contact the Customer Support team and we will assist with any changes required based on the guidance now provided by HMRC.

Display change to ensure the correct rows show when gains are made within the ring fence and small changes to the EOGPL sheets to correcting text and allowing reporting from the sheets.

The utilisation of RDEC sheet has been updated to ensure the 49% credit is allowed.

The following sheets can now be migrated from the desktop version of the software to the web based one:

New functionality has been added to deal with Right of use assets (IFRS 16). If your Right of use assets are included within the tangible or intangible fixed asset note in your statutory accounts, we have added a new line item to the Tangible fixed assets note and Intangible fixed assets note so that a separate Right of use assets column can be inserted into those sheets. If your Right of use assets are disclosed in a separate "Right of use assets note" in the statutory accounts, we have added a new Right of use assets note so that the disclosure in the tax computation can reflect the disclosure in the statutory accounts.

Tangible Right of use assets are to be dealt with for tax purposes on the Capitalised leased assets sheet. Enhancements have been made to this sheet to allow Right of use assets (and other types of leased asset) to be dealt with correctly. These include:

Intangible Right of use assets are to be dealt with on the Allowable per accounts sheet.

Corresponding changes have also been made to the IFRS Tax Accounting sheets to deal with the changes above. Although we do not anticipate a computation prepared under FRS 102 to include Right of use asset as this point in time, for completeness, we have also updated the FRS 102 sheets so that these too can accommodate Right of use assets.

These changes have been made for FY23.

We have made some small corrections and updates to the tax accounting sheets including:

Provision details added where group relief surrendered for carried forward losses as per HMRC guidance.

Amending some small display and roll forward issues:

Software updated so that where no amounts, or only prior year amounts, have been included on an analysis sheet then that sheet will not show in final.

Amended the REIT total tax exempt profits sheet to remove the row for group relief surrendered as this is not applicable here. Also made the group relief claimed data entry to avoid any claims for other trades being included.

We have had numerous customer requests to populate the tax basis balance sheet automatically under IFRS, so for 2023 templates onwards we have included this functionality. This functionality is intended for simple tax accounting computations where it is easy to identify the balances from the tax computation and populate the tax basis balance sheet with these amounts. If the tax accounting is more complex, we would recommend completing the tax basis balance sheet manually.

To use the functionality, at the bottom of the Tax basis balance sheet there is a selector called "Populate tax basis balance sheet" which can be changed to "Yes" (defaults to No). If this selector is changed to "Yes" then the amounts in the "Suggested values from the tax computation" section at the bottom of the Tax basis balance sheet are subtotalled - depending on how they are classified in the "Tax basis balance sheet category" column on the right hand side - and posted to the top half of the tax basis balance sheet automatically. The amounts will be posted into either the non-current assets, current liabilities or tax items not on balance sheet sections only.

The categories used for "Tax basis balance sheet category" have been pre-defined, and the amounts allocated to each of those pre-defined categories are based on the nature of the item in the tax computation. You can amend the name of any of the pre-defined categories by adding in a new line item and replacing the existing name (as can be done for the categories for deferred tax and categories for reconciling items).

Group relief claimed sheet is now fully reportabe.

We have made some updates to the Car leasing rental restriction sheet:

Various changes made to the sheets including the following:

Changes to the R & D sheets:

Various changes and corrections as follows:

Other allowances sheet updated to pick up date of cessation of investment business and adjust automatically.