Refund of s455 (s419) tax not on CT600 or CT600A when a loan repayment entered in Corporation Tax
Essentially this is a problem with the design of the CT600 and CT600A.
Where an historic loan balance has been reduced or repaid in full, the company will be due a refund of the s455 (s419) tax paid.
However, there is nowhere on either form to reflect the refund now due. HMRC should pick up the fact that the loan balance has been reduced from box A12 on page 4 of the CT600A or box A75 on page 3 in the new version 3 form CT600A. In addition, the computation report will show the repaid amount.
You may also wish to add a note in the
Accounts
to the effect that 'the loan balance of £X has been reduced by £Y as at the year end. The company looks forward to receiving a repayment of £Z as soon as possible.' HMRC should have enough information above to repay the refund. However, users have reported a quicker refund response where they have completed the
Reclaim tax paid by close companies on loans to participators
form. This form needs to be completed on the HMRC website and can be accessed from this link: Reclaim tax paid by close companies on loans to participators form.