CH82301 - Penalties for Inaccuracies: Calculating the penalty: Losses impact on potential lost revenue calculation: Losses
You must check the date from which these rules apply for the tax or duty you are dealing with. See CH81011 for full details.
»Ê¹ÚÌåÓýapp guidance on losses applies to
- income tax
- Class 4 NICs which are collected as if they were income tax
- capital gains tax
- corporation tax
- petroleum revenue tax.
»Ê¹ÚÌåÓýapp guidance on losses does not apply to VAT, other indirect taxes, Bank Payroll Tax, Excise or other classes of NICs. »Ê¹ÚÌåÓýapp income on which these taxes and duties are chargeable can only generate a specific liability to these taxes, and not a corresponding loss.
Where there are losses, the calculation of potential lost revenue (PLR) will include any additional tax due as a result of amending the loss to the correct figure.
Incorrect losses which have no immediate tax effect will be considered for penalties at a discounted rate. »Ê¹ÚÌåÓýapp discounted rate is set by law, see CH82320.
As well as a loss, the guidance on losses applies to
- a charge
- an expense
- a deficit, and
- any other amount that
- may be available for, or
- relied on to claim
a deduction or relief.