Claims for Section 213 Carry backs

Question: what to do if making a claim to carry deemed disposal losses back to the two previous accounting periods if it is not possible to amend the corporation return for the earlier period?

That is at 31.03.2017 a tax computation is prepared for the period to 31.12.2016 showing deemed disposal losses for the period.  The loss can be carried back to accounting periods 31.12.2015 and 31.12.2014 but if  HMRC has not opened an enquiry on 31.12.2014 we are out of time to amend the return.

There is some good guidance on this at CTM 90630

The rules are that in the example above  the deemed loss being carried back to 2015 would be included in an amended return.

However as it is no longer possible to amend the 2014 return the loss carry back instead falls within the rules in TMA 1970 schedule 1A and the carry back is given effect by way of a repayment.

Rather neat as it means there is no requirement to go through the administrative gymnastics of somehow reopening a closed accounting period.

Authorised Contractual Schemes: Consultation

HMRC has issued a Consultation on authorised contractual schemes (ACS).

Consultation states pension schemes and insurance companies are the main investors in ACS, most investors currently exempt but this consultation is to future proof for taxable investors.

Proposal to allow ACS operators to claim and manage capital allowances for participants.

Proposal to require ACS operators to  provide investors with sufficient information to meet their tax obligations.

Previous posts of tax transparent funds are Here.