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What's new in Sage Corporation Tax v5.1

Created on  | Last modified on 

Summary

Learn about new features and updates released in Sage Corporation Tax v5.1.

Description

Feature 

Summary

iXBRL: CT2024 taxonomy

The CT2024 taxonomy is included.

Updates include all the new relevant tax computation iXBRL tags and other pertinent changes.
iXBRL: Sage Assisted Tagging (SAT)

The latest version (v6.0.107.0) of SAT is included and incorporates the latest accounts taxonomies and the CT2024 taxonomy.

R&D: Move to new location

R&D Claims and Expenditure Credits tabs have moved to the new "R&D Expenditure" branch in the navigator. This branch now includes:

  • R&D Claims List screen
  • R&D Claims Summary screen (formerly the R&D Claims tab on the Trade screen)
  • R&D Expenditure Credits screen (formerly the R&D Expenditure Credits tab on the Trade screen)

Existing data remains accessible in the new location. All R&D functions and validations work as before, with updates reflecting other changes in this release.
R&D: Merged scheme
FA 2024 introduced a merged R&D scheme for accounting periods starting on or after 01/04/2024, combining features of the RDEC and SME schemes. Key changes include:
  • Relief is now available for subsidized expenditure.
  • Only risk-taking companies conducting R&D can claim relief for subcontracted R&D.
  • Overseas contractor payments and EPWs face stricter relief rules.

Technical details, such as tagging and updated CT600/CT600L forms, HMRC plans to publish final forms by April 2025.

FA 2024 retained the SME scheme for loss-making, R&D-intensive SMEs. 

Special tax sites in Freeports and Investment Zones

New Freeport and Investment Zone Special tax sites are now active, with updates to screens, reports, validations, and CT600M.

  • Freeport sites are marked with "F:" and Investment Zone sites with "IZ:" in the Fixed Asset Register.
  • Qualifying expenditure periods for existing Special tax sites have extended to 10 years:
    • Freeport sites in England: sunset date moved to 30/09/2031.
    • Other sites: sunset date moved to 30/09/2034.
  • Newly designated sites include:
    • F: Inverness and Cromarty Firth Green
    • F: Forth Green
    • F: Celtic
    • IZ: Liverpool City Region
    • IZ: North East
    • IZ: West Midlands

 NOTE: F: Anglesey is pending designation. 

UK trade: Loss surrendered for R&D tax relief - maximum amounts that may be surrendered        

 

The maximum trade loss that can be surrendered for R&D, for periods ending on or after 01/04/2023, is now validated based on legislation and HMRC guidance, including changes to R&D enhancement rates.

  • A new "Maximum losses that may be surrendered for R&D tax relief" section on the Losses This Period subtab shows the calculated limit. Entered amounts must not exceed this limit.
  • The B2 report includes a matching section to display this information.
  • If the PAYE/NICs cap applies, reduce the amount to avoid exceeding the cap

Online Filing and Sage Assisted Tagging (SAT): Enhancements
Enhancements improve tax computation filing:
  • Online Filing now checks that CT600 values match the tagged tax computation and ensures expected reports are included.
  • If no tagged computation exists, a clearer Confirm message guides users on tagging options (Computation Only or P&L and Computation).
  • If a tagged computation exists, a Warning alerts users to verify if it is outdated due to changes in the tax computation.
Resolved issues in this version
Reporting
  • Report B12 now shows correct Gross expenditure amounts in the "After rate change" section for periods straddling 01/04/2023 (no impact on other figures).
  • Report B12 shows the correct Maximum claim when the tax credit cap applies.
  • CT600A excludes hidden loan transactions linked to disabled values.
  • CT600 box 280 is now completed for terminal loss relief claims from later periods.

R&D Claims Summary

  • PAYE references now export and import correctly when using "Export current company."

R&D Expenditure Credits

  • Step 2 restriction carried forward is now correctly calculated to prevent negative values.

Sage Assisted Tagging

  • Exceptional item tag lists are now complete.

Software Crashes/Access Violations

  • Resolved issues with recursion and circular calculations.
  • Fixed an issue preventing companies from opening after v5.0 updates.