United Kingdom

July 2025 United Kingdom

We've released the following new templates for ONESOURCE Corporate Tax:
Template
FY24
FY25 (New)
United Kingdom Entity
1.330
1.040
United Kingdom Life
1.081
1.008
United Kingdom Group
1.077
1.024
United Kingdom Non-OCT
1.007
1.001
This template versions will become the default template when you create a new calculation.

Upgrade to the latest template

When you open a calculation, you may be requested to upgrade your calculation. If you want to upgrade, select
Yes
. There is also an option to run a comparison between the old and new template. See Upgrade Templates.
If you want to upgrade to a template that isn't the latest version, select the
More
 button on the Calculation for that entity and select
Upgrade to
. See Upgrading to an Earlier Version of a Template.
You also have the option to upgrade multiple templates at the same time. See Upgrading Templates in Bulk for help.

Corporation tax

Creative industries - new Visual effects expenditure credit
You can now claim an additional visual effects credit (VFX) on UK visual effects costs incurred after 1 January 2025 on films or high-end television productions.
On the
Creative expenditure credit
 sheet, when you choose “Enhanced AVEC – visual effects (VFX)” as the “Type of expenditure credit”, you will be prompted to develop the
Visual effects expenditure credit
 sheet, which can be developed using the insert menu. On this sheet, you populate the “Identify the amount of qualifying visual effects expenditure (VFX) in the AVEC period (Step 2)” data entry cell. The sheet will then use this figure and information gathered from the
Creative expenditure credit
 sheet to calculate the relevant additional VFX credit using the steps detailed in the legislation. The additional VFX credit will feed back to the
Creative expenditure credit
 sheet and be included in the Creative industry expenditure credit (Step 5) amount.
Creative industry relief rate changes
From 1 April 2025, the rates of Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums and Galleries Exhibition Tax Relief (MGETR) are permanently set at 45% (for touring and orchestra productions) and 40% (for non-touring productions). For FY2025 files onwards, we’ve updated the
Creative industry enhanced expenditure
 and
Other tax rates
 sheets to reflect the new rates. We have also included an override cell on the
Creative industry enhanced expenditure
 sheet so that if you have a period that straddles 1 April 2025, you can enter a blended rate, should that be appropriate. The relevant rate will flow through to the
Payable tax credits
 sheet.
Corporate interest restriction for oil and gas companies
We have made the following changes to ensure that amounts taken into account in the calculation of ring fence profits are excluded for CIR purposes:
  • Net tax-interest expense: Trade loan relationships and trade derivatives from a ring fence trade don’t link to the
    Corporate interest restriction - values
    sheet from the Loan relationship and derivatives sheet and are therefore excluded from the CIR calculations. Only non-trade loan relationship and non-trade derivative values now link to the
    Corporate interest restriction - values
     sheet. As a result of these changes, no amount of restriction or reactivation can be allocated to either the trade loan relationship or trade derivative category of tax-interest.
  • Tax-EBITDA: Ring fence profits and ring fence losses are excluded from Condition A and Condition B. The s407 TIOPA 2010 tax-EBITDA adjustments must therefore also exclude any ring fence values. We’ve added a new column "Adjustments - s407 TIOPA 2010: Ring fence trade (excluded for CIR)" to the
    Corporate interest restriction - values
     sheet to identify and remove amounts relating to the ring fence trade.
CT600L – temporary workaround for box L75
As noted in our April 2025 release notes, HMRC acknowledged the error on the CT600L relating to the completion of box L75 when the tax credit cap exception applies under the merged RDEC rules (applicable for accounting periods beginning on or after 1 April 2024). We have now incorporated this workaround into the CT600L (2025). When the tax credit cap exception applies, the amount entered in box L75 now equals the amount entered in box L70 so that the amount of step 3 restriction carried forward to the next accounting period in box L80 is £nil. The HMRC notification of the workaround can be found here.
Excluded assets sheet – new cost section
We’ve added an optional cost analysis table into the
Excluded assets
 sheet. This table can be completed if you want to reconcile excluded assets additions and disposals with the IFA
Additions analysis
 and
Disposals analysis
 sheets. The cost analysis table is hidden by default as, for the purposes of calculating tax adjustments, only the original cost is relevant.
Investment business sheet – new data entry row
We have added data entry rows to the “Allowable management expenses” section of the
Investment business
 sheet. Manual adjustments can now be made on this sheet, providing you with the same flexibility as you have on the
Adjustment details
 sheet relevant for trades. You can add additional rows to this section as required.
Loan relationships and derivatives – new row support sheet
A new
Loan relationships and derivatives - analysis
 sheet has been added to support individual rows on the
Loan relationship and derivatives
 sheet. When you develop this sheet from the insert menu, it supports the specific row on the parent sheet where the cursor is present. Amounts analysed on this sheet must be of the same "Type" and must relate to the same trade. The totals on this new sheet then link back to the main
Loan relationship and derivatives
 sheet.
Taxonomy update
The 2025 taxonomy has been added allowing submission of FY25 files to HMRC.
Other minor changes
  • Following the changes made to the
    Expense and income analysis
     sheet in our previous release (please refer to our 2025 Q2 United Kingdom release notes for further details), the following amendments have been made:
    • The original
      Investment business expense and income analysis
       sheet can no longer be developed into an FY25 file.
    • The “Allowable management expenses” option in the dropdown in the “Analysed as” column is no longer available in FY25 files. Management expenses are now analysed across the relevant columns.
  • The "Other" rows captions on the
    Defined benefits pension scheme
    sheet are now editable to allow you to change the description.
  • We’ve added a warning to the
    Cross border royalties
     sheet which alerts you when the post code is entered in an incorrect format.
  • The entity name on the
    Company financial statements reporting
     sheet for REITs is now editable (FY25 only).
  • We removed the "Date of addition" row from the
    Loans to participators
     sheet together with the validation requiring you to enter a date, as this is no longer required.
  • The new benchmark price of £79.95, applicable for the period 1 April 2025 to 31 March 2026, has been added to the
    Electricity generator levy
     sheet.
  • We corrected the way the
    Tax payments and interest
     sheet categorises the timing of tax payments. Payments made before the start of the period are now included with payments made during the period within the "Net amounts paid (+) / received (-) on or before [period end date]" row. Payments made after the period end date are included within the "Net amount paid (+) / received (-) after [period end date]" row. This section is relevant for tax accounting purposes.
  • The new “Other” columns added to the
    Finance lease debtor
     sheet during our 2025 Q1 release have been marked up for importing purposes.

Group

Group module improvements
We have made the following improvements to the group module: Consortium companies:
  • Where a group includes one or more consortium companies, you can now indicate this on the
    Group member
     sheet by entering the percentage ownership in the Consortium percentage column.
Profit and loss information for group relief purposes:
  • A new
    Group relief profit and loss information
     sheet has been added. This inserts a column for each member of the group, showing the starting point for profits and losses used in the
    Losses matrix
     sheet and the
    Carried forward losses matrix
     sheet.
  • For consortium companies, the profit/loss will be automatically reduced to the appropriate amount based on the consortium percentage entered on the
    Group member
     sheet.
  • There is then a data entry row for you to enter any other manual adjustments. For example, if a company with current period losses has profits that you want to offset against the losses in priority to group relief, then you can use this row to reduce the losses accordingly.
Group relief allocations
We’ve added a new feature to the
Losses matrix
 and
Carried forward losses matrix
 sheets in the group module. This allows you to press an “Automatic Allocation” button, which will automatically populate the group relief matrix and/or the group relief for carried forward losses matrix.
The automatic allocation feature allocates losses to profit-making companies based on the current row and column order, starting from the top left of the matrix and proceeding left to right before moving down to the next row. It doesn’t attempt to optimise group relief claims or use losses in the most tax-efficient manner, and therefore users are responsible for reviewing all allocations. The rows and columns can be reordered prior to running the automatic allocation.
The calculation is based on the number of overlapping days between the profit-making company’s and loss-making company’s accounting periods, as well as the profit-making company’s maximum claim available and the loss-making company’s available losses to surrender.

Tax Accounting

As part of our changes for the new intangible fixed assets category for deferred tax, we have made some changes to how the "Disclosure note caption" selectors work on the
Gross timing differences
 sheet in 2025. As such, if you have changed a selector on the
Gross timing differences
 sheet in 2024 (that is, it is different to its default position/the section that it is in), you will need to make sure you make the same change to the selector for that row on the
Gross timing differences
 sheet again in 2025.
New Intangible fixed assets category for deferred tax
We’ve added "Intangible fixed assets" as a new deferred tax category to allow you to separately identify your tangible and intangible fixed assets. You can choose the new category using the selector on the
Gross timing differences
 sheet (FRS102) or the
Temporary differences
 sheet (IFRS). New rows and columns for "Intangible fixed assets" have also been added to the following sheets:
  • Tax account
  • Accounts disclosures and Accounts disclosure analysis
  • Proof of tax
  • Comparison of CT and DT movements through I/S
  • Net timing differences (FRS102)
  • Prior year adjustment calculation
  • Tax rates and options
We have also updated the group
Account disclosures
 sheet to reflect the changes made to the entity
Account disclosures
 sheet.
Pillar two adjustments
We have added a row to the "Tax credits and charges" section on the
Tax account
 for both IFRS and FRS102 called "Pillar two adjustments". You may need to switch the selector at the bottom of the
Tax account
 to show this section.
You can use this row to track any Pillar two adjustments relevant to your tax accounting computation. The Pillar two adjustments will be taken to the
Proof of tax
 and allocated to the new Pillar two adjustments column, and also to the
Accounts disclosures
 sheet on a separate row in the Total tax charge reconciliation.
Other tax accounting changes
We have made the following corrections/updates to the tax accounting sheets:
  • We amended the prior period "year" end within the tax reconciliation section on the
    Accounts disclosures
     sheet so that it now refers to the year of the statutory accounts end date and not the financial year. For example, a prior period end of 31 March 2023 was previously referenced as "2022", it being within the OneSource financial year 1 April 2022 to 31 March 2023. This will now be referred to as "2023".
  • Depreciation in respect of right of use assets in an investment company is now separately identified as depreciation and not expenses not deductible on the
    Proof of tax
    .
  • Amounts entered in the "Other" row in the "Adjustments for tax purposes" section on
    Comparison of CT and DT movements
     sheet can now be allocated to the "Income not taxable" column if required.
  • The group tax accounting module now picks up the “Name” of the entity from the Entity Manager rather than the “Short name” for each entity row on the
    Tax account
     and
    Payments for relief
     sheets and columns on the
    Accounts disclosures
    ,
    Consolidated disclosure note headings
     and
    Movement in deferred tax (assets) and liabilities
     (for IFRS) sheets.

Life companies

Loss reliefs
We have made improvements to the way that current period and b/f non-BLAGAB capital losses are offset against the shareholders' share of BLAGAB gains. In accordance with the mechanics of the legislation, the shareholders' share of BLAGAB I-E is now calculated using the shareholders' percentage that would apply if there were no such offset (a second table has been added at the bottom of the Iterative calculations sheet to show this), and the offset is deducted from the policyholders' share of I-E first. The
Carried forward losses
 sheet has also been amended for this, with the BLAGAB gains column no longer feeding into the Total profits column, except for the deductions allowance.
We have also corrected the scenario where there are both b/f pre-April-17 LTBFC non-trading deficits and b/f non-BLAGAB capital losses being offset, so that the two only interact when they are being offset against current period non-BLAGAB gains, with the b/f non-BLAGAB capital losses taking priority. B/f pre-April-17 LTBFC non-trading deficits can now also be offset against the shareholders' share of I-E.
Iterative tax charge calculation
For proprietary Life companies that prepare their financial statements under FRS 101/102, we have added functionality for the calculated tax charge to be passed back into the income statement via the fund analysis sheets.
To use this functionality, insert
Iterative tax charge calculation
. This inserts the following sheets:
  • Tax by business category
     - this sheet takes the total policyholder and shareholder taxes and apportions them between the different business categories.
  • Tax charge split
     - in this sheet you can select which income statement fund analysis sheets to include in the iterative tax charge calculations. It will then apportion the taxes by business category between these funds analysis sheets on a pro rata basis using the profit before tax in each fund.
On the income statement fund analysis sheets themselves, there is a new section at the bottom of the sheet for users to enter other tax adjustments (for example, deferred tax), the amount of shareholder transfer required and, for fund analysis sheets that have been excluded from the iterative tax charge calculation, a manual current tax charge.
The current tax charges passed back into the fund analysis sheets are then calculated using
Populate
.

This article applies to:

  • Product: ONESOURCE Corporate Tax