Last updated 17 May 2024

Trading profits

The trading profits section is a key section where much of the information required for the CT600 tax return is entered.

As well as the trade profits figures themselves, other key tax return items are entered here as adjustments to the net profit and loss per the accounts (for example, bank interest).

The trading profits screen has three tabs:

Trade Summary (which includes Trading losses summary)
Adjustments to trade profit
Capital allowances

Trade Summary

Enter the Name of trade if different from the company name.
Select the Cessation of qualifying activity in this period? option if the qualifying activity has ceased in this period. This box is normally ticked for the accounting period during which the company ceases trading. Ticking the box ensures that balancing capital allowances on pools are correctly calculated.
If the period of account is different from the accounting period, you can enter the correct period of account by selecting Change. Where a long period of account is entered, you have the option to apportion figures automatically from the long period to the accounting period.

The Period of account - start and period of account - end displays the start date and end date of the period of account. These fields will only be visible if the period of account is different from the accounting period.

Enter the total turnover in the period of account.
Select Financial concern having no recognised turnover? option if there is no recognised turnover in the period of account.

Taxable trade profit / (loss) - this field shows the taxable trading profit or loss as calculated on the Adjustments to trade profit tab.

Profit / (loss) apportioned to accounting period - this field is only shown when the period of account differs from the accounting period and you have chosen to automatically apportion profits. This field shows the trading profits apportioned to the current tax return.

Enter all losses as positive figures.

Enter the trading losses brought forward, arising before April 2017from previous periods, if any.
Under new s279ZZ CTA 2010, if a company wishes to set brought forward losses against profits arising from 1 April 2017, they are required to specify the amount of their deduction allowance in their corporation tax return for the period.
Attach a PDF to the tax return stating the amount of the allowance. For additional information please see the HMRC website.
Enter the brought forward losses that are used to reduce profits of the current year.
Enter the total of any losses brought back from a later period under s37(3)(b) or s39(2).
Enter the total losses used to reduce other income and gains in this accounting period.

Losses set off against group profits (from group relief screen) - this field shows any loss surrendered to other group companies (from the Group Relief section).
Loss surrendered for R&D Tax Credit - this field shows any loss that is surrendered for R & D tax credit. This field will only be shown if a claim is made for R & D tax credit.
Loss surrendered for Film Tax Credit - this field shows any loss that is surrendered for film tax credit. This field will only be shown if a claim is made for film tax credit.
Trading losses to carry forward – arising before 1 April 2017 - this field shows any unused trading losses that are being carried forward.
Trading losses to carry forward – arising after 1 April 2017 - this field shows any unused trading losses that are being carried forward.

The Adjustments to trade profit tab allows input of the net profit per the trading accounts and the necessary adjustments to determine the actual trading profit chargeable to tax for the accounting period.

Enter the net profit or loss per the accounts.

Select Edit... to open the depreciation grid. This shows the disallowed depreciation to be added back.
Select Edit... to open the Amortisation grid which shows the total disallowed amortisation to be added back.
Select Edit... to open the Loss or (profit) on sale of fixed assets grid which shows any disallowed net loss on the sale of fixed assets.
Select Edit... to open the Disallowable entertaining grid which shows the value of disallowed entertaining to be added back.
Select Edit... to open the donations grid which shows the total value of donations that are disallowed.
Select Edit... to open the legal and professional fees grid which shows the total value of legal and professional fees that are disallowed.
Select Edit... to open the Repairs and renewals grid which shows the total value of disallowed repairs and renewals expenditure.
Select Edit...to open the Leased high emission cars grid which shows the portion of expenditure on leased cars that are disallowed.
Select Edit... to open the Remuneration not paid grid which shows any remuneration not paid that has been disallowed for tax purposes.
Select Edit... to open the Provisions and bad debts grid which shows the total of any general bad debt provision that has been disallowed.
Select Edit... to open the Other disallowable expenses grid which shows the total of any other disallowed expenses for the period.
Taxable Research and Development Expenditure Credit - shows the amount of taxable research and development expenditure credit.

Less: Amounts taxable under other schedules

Profits/(losses) from non-trading loan relationships - shows the total amount to be treated as non-trading loan relationships income and excluded from trading profits. This includes bank interest received.

Select Edit... to open the Non-trading loan relationships grid which shows non-trading loan relationship deficits in respect of interest paid are shown as negative amounts.
Select Edit... to open the Annuities & annual payments grid which shows the total annuities and annual payments to be excluded from trading profits.
Select Edit... to open the Non-exempt dividends & distributions from overseas companies grid which shows the total overseas income excluded from trading profits.
Select Edit... to open the Income from which Income Tax has been deducted grid which shows the total of income that has had income tax deducted and which should be deducted from trading profits.
Select Edit... to open the loss or (profit) on sale of fixed assets grid which shows any net profit on the sale of fixed assets and which should be excluded from trading profits.
Select Edit... to open the other income and gains grid which shows the total of all other income and gains that should be excluded from trading profits.
Select Edit... to override the amount to be deducted from trade profits. Income from UK land and buildings shows the total property income that should be excluded from trading profits. This figure is usually transferred automatically from the Property income section.

Less: allowable deductions not in accounts

Select Edit... to open the Enhanced Research & Development expenditure grid which shows any enhancement to R&D expenditure.
Select Edit...to open the Land remediation enhanced expenditure grid which shows any enhanced land remediation deduction.
Select Edit...to open the Other deductions from trade profits grid which shows the total of any other deductions from trade profits.
Select the Capital allowances tab to enter capital allowances. This show the Net capital allowances.

Taxable profit/(loss) - this field shows the calculated total taxable trade profits for this accounting period.