Changes and Issues Affecting the Corporate Tax Online Service

Super-deduction and allowances of 50% for the first year

Between April 1, 2021 and March 31, 2023, companies can claim new depreciation for eligible expenses relating to new plant and machinery.

Learn more about the new temporary tax breaks on capital investments starting April 1, 2021.

The Corporations Tax online service will not be updated to support the new allowances until April 2022. If you do not need to report these new reliefs, continue to file your return online in the usual way until that the service is updated.

If you need to report a super deduction, first year 50% abatement, or balance charge online before April 2022

You can do this by using existing sinking funds.

For CT600:

• boxes 725 and 750 can be used for claim amounts
• boxes 730 and 755 can be used to report balancing charges
• box 775 can be used for eligible expenses

You should deposit this way until the service is updated and new boxes are available.

If your business uses HMRC’s free filing service and you want to claim the new super deduction

You must wait for the service to be updated before filing your corporate income tax return.

If you urgently need to file before April 2022, contact HMRC.

Freeports: Reinforced Structures and Buildings Allocation

Businesses can use this rate plus the allowance for structures and buildings to claim capital construction costs. This applies to certain new structures and buildings in Freeport’s Designated Tax Sites.

Learn more about improved allowances for structures and buildings in Freeports.

The Corporations Tax online service will not be updated to support the new allowance until April 2022. If you do not need to file this new relief, continue to file your return online in the usual way until that the service is updated.

If you need to submit an enhanced Structures and Buildings Allowance application online before April 2022

If you are not using HMRC’s free filing service, you must use the existing boxes on the statement to submit your application.

For CT600:

• boxes 711 and 736 can be used for claim amounts
• box 771 can be used for eligible expenses

You should deposit this way until the service is updated and new boxes are available.

If your business uses the HMRC free filing service

You cannot claim the enhanced Structures and Buildings Allowance using this service.

Freeports: increased depreciation

Businesses can use this enhanced capital cost allowance to claim qualifying expenses for plant and machinery primarily used at designated Freeport tax sites.

Learn more about the enhanced capital cost allowance for plant and machinery in freeports.

The Corporations Tax online service will not be updated to support the new allowance until April 2022. If you do not need to file this new relief, continue to file your return online in the usual way until that the service is updated.

If you need to submit a claim for enhanced capital cost allowance before April 2022

If you are not using HMRC’s free filing service, you must use the existing boxes on the statement to submit your application.

For CT600:

• boxes 725 can be used for claim amounts
• box 760 can be used for eligible expenses

You should deposit this way until the service is updated and new boxes are available.

If your business uses the HMRC free filing service

You cannot claim enhanced capital cost allowance using this service.