Business Tax- Surrender maximum the maximum available for surrender as group relief (Box 850/855)

business-tax-surrender-maximum-the-maximum-available-for-surrender-as-group-relief-box-850-855

Business Tax- Surrender maximum the maximum available for surrender as group relief (Box 850/855)

3rd March 2023

IRIS Business Tax- Surrender maximum the maximum available for surrender as group relief must not be greater than the amount arising- linked to 850 and 855

Note: Box 850 is linked to Excess Management Expenses and 855 is linked to Excess surrender as group relief

This was investigated by the Development Software Team and has been identified as a defect in the IRISA software Version 22.4.0. This issue will be fixed in Version 23.1.0, which is due to be released in April 2023. However, please see the workaround below: –

Please do the following to resolve your issue: –

1. As the Tax Computation is already correct, go to Reports | Corporation Tax | Enhanced, tick the box “iXBRL” and choose a location to save the file via the “Details” button

2. Go to Data Entry | Calculation | Deductions and Reliefs | Management Expenses and remove the Brought forward amount both “Pre” and “Post”

3. In the management expenses incurred field enter the uplifted total for “The amount incurred + the amount offset against the profits”

This will populate the correct value in boxes 850/855 on the CT600

4. When generating the Electronic Tax Return, in the “Attach Computation” section, choose the option to “Select External file” and attach the iXBRL computation that was saved earlier

These steps will ensure the Tax Computation and the Tax Return both show the correct values as expected and are submitted successfully.