Capital allowances super-deduction and first year allowances CT600 presentation up to March 2023

Pending HMRC guidance on the presentation of super-deduction and special rate first-year allowances, charges and qualifying expenditure on form CT600, epCT3.13.04 updates Caseware Corporation Tax to utilise the following CT600 PDF boxes for interim reporting:

• Boxes 695, 705 and 750 are used for claim amounts
• Boxes 700, 710 and 755 are used to report balancing charges
• Box 750 is used for qualifying expenditure

This presentation was selected based on the latest available information in the CT600 guide (3 September 2021), and the Finance Act 2021 which enacted the 50% special rate first-year allowance and 130% super deduction as temporary first-year allowances applying to special rate and main rate qualifying expenditure respectively.

50% special rate first-year and 130% super deduction allowances, charges and expenditure are clearly itemised on the computation as well as the CT600.

On 5th November, HMRC released new interim guidance on their online service page stating that, pending the introduction of dedicated PDF boxes and online service updates for super-deduction and special rate FYAs in April 2022, the following boxes can be utilised for interim reporting:

• 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 qualifying expenditure

Note: This interim guidance is not prescriptive, and concerns the presentation of the CT600 PDF only and not the total allowances and charges which form part of the calculation of adjusted profits.

Users have expressed a pressing need for super-deduction capital allowances in our template and amending epCT3.13.04 for the 5th November interim guidance would have caused a significant delay to release. As such epCT3.13.04 does not follow the PDF boxes suggested in HMRC’s 5th November interim guidance for interim reporting of super-deduction and special rate first-year allowances, charges and expenditure.

Users wishing to present their CT600 PDF in accordance with HMRC’s suggestions in the 5th November interim guidance should wait for epCT3.14.01 which will alter the Caseware computation accordingly.

epCT3.14.01 is scheduled for early December, following the release of Caseware Working Papers 2021.