In Civic Environmental Systems Ltd v HMRC [2023] EWCA Civ 722 (26 June 2023) the Court of Appeal (CA) dismissed the appellant’s appeal finding that HMRC and the tribunals below were correct in disregarding the effect of a carry-back loss claim during an appeal of a closure notice.
The appellant a waste regeneration systems provider had made a claim to carry back corporation tax losses arising in the year ended 30 April 2008 to the 2007 accounting period (which generated a repayment of tax from HMRC). When the claim was initially made which at the relevant time was under ICTA 1988 s 393A it was the understanding of the appellant that the losses carried back exceeded the profits available to set off against. Such a claim did not permit the taxpayer to elect how much loss to carry back (it required the entire loss to be...
