What's new in Sage Corporation Tax v3.4

A new FYA option, FYA - Zero-emission cars, is available for expenditure incurred between 01/04/2021 and 31/03/2025 (inclusive).

The FYA option FYA - ECA (zero emissions goods vehicles) has been renamed FYA - Zero-emission goods vehicles and the date the option is available has been extended to 31/03/2025 (from 31/03/2021).

The FYA option FYA - ECA (within enterprise zones) is no longer available if Special rate assets pool (Long life asset) is selected. Note: Existing data is unaffected unless and until edited.

The FYA option FYA - Electric charge-points is no longer available if any of the three Special rate assets pool options is selected. Note: Existing data is unaffected unless and until edited.

The Pre-validation reports have been updated to include all the changes referred to above.

The FYA option FYA - Other now has a hover help tip explaining when it should and should not be used.

The three sections on the screen dealing with FYAs have been combined into one section which includes the new FYA - Zero-emission cars and renamed FYA - Zero-emission goods vehicles.

The report has been updated and improved to include the above screen changes and separately identifies fixed assets additions and assets not capitalised in the accounts.

The three sections on the screen dealing with FYAs have been combined into one section which includes the new FYA - Zero-emission cars and renamed FYA - Zero-emission goods vehicles.

The report has been updated and improved to include the above screen changes and separately identifies fixed assets additions and assets not capitalised in the accounts.

The three sections on the screen dealing with FYAs have been combined into one section which includes the new FYA - Zero-emission cars and renamed FYA - Zero-emission goods vehicles.

The report has been updated and improved to include the above screen changes and separately identifies fixed assets additions and assets not capitalised in the accounts.

The screen and report have been updated to include the new FYA option, FYA - Zero-emission cars.

The screen and report have been updated to include the new FYA option, FYA - Zero-emission cars.

The screen and report have been updated to exclude assets not capitalised in the accounts.

The report has been updated and improved and separately identifies fixed assets additions and assets not capitalised in the accounts.

The report has been updated and improved and separately identifies fixed assets additions and assets not capitalised in the accounts.

The report has been updated to include the new FYA - Zero-emission cars and renamed FYA - Zero-emission goods vehicles.

The relevant section headings have been updated to align with the new CT600 (2021) and some calculations have been updated to reflect the guidance in the CT600 Guide (2021) and/or how this is now interpreted.

NOTE: This report details how each of the figures in CT600 boxes 690 to 775 is calculated. Where the calculations have changed as a result of a new interpretation, you may find the report and those CT600 boxes have different figures to those in the D6 report and CT600 produced in a previous version of Sage Corporation Tax. However, the amount of capital allowances (or balancing charges) reported in the main capital allowances reports (e.g. the Main rate assets pool) are unchanged and do not change the company’s tax position; it is only the way the figures are reported that may have changed. There is no need to submit an amended return unless you have to do so for any other reason.

The CT600 (2021) is included and all supported boxes are completed as and where appropriate.

The CT600L (2021) is a new Supplementary Pages form and is fully supported. The new form is required for all returns (i.e. original and amended) submitted on or after 06/04/2021 where the company is claiming R&D payable tax credit for SMEs and/or R&D expenditure credits (RDEC).

The latest HMRC validations for online filing submissions are included. These support the latest published CT600 and related Supplementary Pages supported by Sage Corporation Tax.

In order to support the new CT600L (2021) (see above), the R&D Claims tab and R&D Expenditure Credits tab on the UK Trade screen have been updated. The updated tabs are used for any period of account (PoA) starting on or after 01/04/2018 although the label changes to existing boxes have been made for all earlier periods. 

Total RDEC b/f has to be analysed between two components. For existing periods, starting with the earliest period that starts on or after 01/04/2018, review and enter the amounts so the total matches the sum of the two components and also agrees to the amounts carried forward from the previous period, which may have been updated due to the changes. For new periods created, the Total RDEC b/f and its two components will be populated but editable

R&D activity is now restricted to a single trade for PoAs starting on or after 01/04/2018. In order to allocate R&D expenditure from the P&L account to trade, you must choose which trade is to be the R&D trade by checking the new R&D trade checkbox on the Details tab. You can only check this box for one trade in each accounting period.

R&D Claims under the RDEC scheme must either be

• RDEC credits (applicable to large companies), or 
• RDEC on subcontracted expenditure or subsidised/capped expenditure for SMEs 
  
  

Report B12 has also been updated to reflect the above changes.

The R&D Claim List screen and the R&D Claim screen no longer include the numbering of the different R&D claim types. This is because we found that the numbering was not unique in some circumstances and could lead to confusion.

A previous HMRC concession, now legislated for by FA 2020, s26 has been included. This provides that, for accounting periods (APs) starting on/after 11/03/2020, a ‘very large’ company for the purposes of QIPs is treated as a ‘large’ company where the AP is very short (often just one day) and the only taxable profits are chargeable gains arising on the disposal(s) of an asset within the chargeable gains regime such that each day in the AP has at least one disposal of an such an asset.

The availability and default of the radio buttons used to select whether or not QIPs apply in the Payments & Refunds tab on the Tax Payments & Refunds screen have been updated. The way the radio buttons determine which, if any, of the CT600 boxes 630 and 631 is completed has also been updated.

There are new Pre-validation reports dealing with scenarios where FA 2020, s26 may apply but the current data would need to be amended in order to apply.

The £1 million AIA limit has been extended by 12 months to 31/12/2021 by FA 2021, s15 and this is included.

FA 2020, s25 and Sch 4 introduced the CCLR and the related chargeable gains deductions allowance for accounting periods (APs) starting on or after 01/04/2020 with transitional rules for APs straddling that date. There were also consequential changes to the legislation relating to the existing corporate income loss restriction (CILR) and the related trading profits and non-trading profits deductions allowances. The £5 million deductions allowance for a standalone company, or a group, remains but must now be divided between the CILR and CCLR.

The £5 million deductions allowance for a standalone company, or a group, remains but must now be divided between the CILR and CCLR.

The Chargeable Gains / Capital Losses Summary screen has been updated to deal with the changes. In APs that straddle 01/04/2020, there are additional columns to deal with the two notional APs.

There are additional boxes to deal with the CCLR itself and the special rules relating to capital losses treated as included (for non-UK resident company landlords) and situations where there are a number of very short APs all falling in the same Financial Year and in each of those APs the company is either chargeable to CT solely because it has net chargeable gains or it has capital losses and no other income source. In those APs, the capital losses in the later AP(s) can be relieved against the chargeable gains in the earlier AP(s).

The Return Information screen has been updated to include the new chargeable gains deduction allowance and rename the trading profits and non-trading profits deduction allowances.

The pre-validation report has been updated to include the chargeable gains deduction allowance and the renamed deduction allowances.

Report B1 (Reliefs claimed this period) has been updated for the changes to the deduction allowances referred to above.

Report F1 (Chargeable gains and capital losses summary) has been updated to include the changes referred to above.

A new navigator item and screen have been added for periods of account ending on or after 19/03/2020. The new navigator item, Coronavirus Support Schemes, is under Claims & Reliefs. The new screen allows the appropriate data to be entered and which will populate the new CT600 boxes 471, 472, 473 and 474.

No supporting report is required as the amounts in the CT600 boxes relate to the company and do not need to be analysed between different activities if there is more than one activity. However, where the company carries on more than one activity, the support scheme payments received must be apportioned between the activities as is appropriate to the circumstances.

The Tax Payments and Refunds screen has been updated to make it clear that any entry added to the grid must not include or relate to payments or refunds of restitution tax or Coronavirus support schemes overpayments.

The Pre-validation report has been updated to include Coronavirus support schemes.