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This guidance applies to returns with a filing date on or before 31 March 2009.

Guidance for returns and other documents with a filing date on or after 1 April 2009, where the return relates to a tax period beginning on or after 1 April 2008, is contained in CH80000+.

Where a culpable tax difference has been established for an earlier year and that year is affected by a loss relating to a later year claimed to be carried back, the loss should be regarded as primarily allocated against any non-culpable tax.

Example

APE 31 December 2002

Ìý	Ìý
Corporation tax payable based on return as submitted	30,000
Additional tax established by enquiry (culpable)	4 0 , 0 0 0
Total tax payable in first instance	70,000

APE 31 December 2003

CT return received including claim to loss relief that amends the previous years return by £50,000 tax.

No enquiry is made into the return or the claim.

Revised Computation of tax for Enquiry year (APE 31 December 2002)

Ìý	Ìý	Ìý
Corporation tax payable based on return as submitted	30,000	Ìý
Additional tax established by enquiry	40,000	Ìý
less: Loss relief (total £50,000)	3 0 , 0 0 0	2 0 , 0 0 0
Non-culpable tax	nil	Ìý
Culpable tax	20,000	Ìý

The ‘tax difference� is the difference between the final tax after loss relief (£20,000) and the original tax after loss relief (nil).