Taxes Consolidation Act 1997 section 395B

Interim claim for carry-back of relevant losses and relevant allowances

Section 395B provides a mechanism for self-employed individuals to make a provisional interim claim for a repayment of 2019 income tax, based on estimated losses or capital allowances arising in 2020 or 2021 as a result of Covid-19.

• An interim claim may be made by a trader or professional who expects to incur a relevant loss (section 395A) or relevant allowances (section 304(3A)) in 2020 or 2021, using estimated rather than final figures, subject to time limits and a requirement to be fully tax compliant at the time of the claim.
• A final claim must be made by the income tax return filing date for the year in which the loss or allowances arise; if no final claim is made and the actual figures are no lower than the estimates, the interim claim is treated as the final claim.
• After making an interim claim, the claimant must reduce it without delay if estimates prove too high, and may increase it (within the permitted time window) if estimates prove too low.
• Where an interim claim produces an excess claim, the over-repaid tax carries interest from the date of repayment, though interest runs only from the date of reduction where the claim was neither deliberately nor carelessly overstated and was promptly corrected.