CCH Corporation Tax 2024.3: Release Notes
Release Highlights
This release of CCH Corporation Tax is specifically targeted to include the following:
- Research and Development Changes
- Creative Industry Changes
- CCH iFirm Accounts Production to CCH Corporation Tax Link
Details of these and other notable issues are included in these release notes.
Prerequisites
Installing CCH Corporation Tax 2024.3
This release is installed using the Central Suite Installer. This ensures that all prerequisites are in place and that all the products for which you are licenced are installed in the correct sequence. Click here to learn about the Central Suite Installer.
Note that when upgrading, the Corporation Tax Database Upgrade is, relatively, slow as it is loading new iXBRL tags. We will work to speed up this process before the compliance release for 2025.
Legislative & Compliance Updates
Research and Development Changes
We have made some changes to the Research and Development functionality within the software.
L55 calculation changes
For accounting periods starting after 31st March 2024, Box L55 defaults to automatically calculate the Corporation tax charge on RDEC at 25% where the PCTCT less the RDEC claim for the accounting period is greater than £50,000 and 19% where it is less than £50,000. Selecting the Override checkbox enables the Tax Rate % dropdown menu to select an alternative rate.
L75 calculation changes
For accounting periods starting after 31st March 2024, if PAYE/NIC is entered on the Tax Credits screen then L75 is calculated as £20,000 + 300% of the value entered.
Creative Industry changes
AVEC/VGEC
For Accounting Periods ending after 31st December 2023, we have introduced two new options into the Creative Industry Type dropdown menu, AVEC and VGEC, for Audio Visual Expenditure Credit and Video Gaming Expenditure Credit.
When AVEC or VGEC are selected at tax credit is calculated at 34% of the Additional Deduction.
For AVEC the tax rate can be changed to 39% or 53% via the Tax Rate % dropdown menu.
Both the Additional deduction and the Tax Credit claimed can be overridden via the override fields.
The Tax Credit claimed will appear as AVEC/VGEC CY in the Tax Credits screen.
The amount Utilised against current CT liabilities will be calculated and amounts Utilised against other liabilities and amounts Surrendered to Group Companies can be entered.
Any amount repayable or Carried forward will be calculated.
In the Corporation Tax reports, AVEC / VGEC Expenditure Credits will be deducted in the Corporation Tax Liability report.
Tax credits brought forward & group claims, Tax credits claimed, Tax credits utilised and Tax credits carried forward will be displayed in the Tax Credit Summary report.
CCH iFirm Accounts Production to CCH Corporation Tax Link
To assist customers moving to our new cloud Accounts Production platform, Txt files exported from CCH iFirm Accounts Production can now be imported into CCH Corporation Tax.
The facility currently imports the following values;
· Turnover
· Profit/(Loss) before tax
· Depreciation
· Profit/(Loss) on Disposal of Fixed Assets
To export the data from CCH iFirm Accounts Production, open the client in Accounts Production select Tax data (draft). Select the Download drop down and select Text.
This will create a .TXT file.
To import the data held within the .TXT file, within the CCH Corporation Tax return period, select the Import- CCH iFirm AP Export TXT file icon from the ribbon and browse to the .TXT file.
Notable issues
Abolition of the furnished holiday lettings
With the abolition of the furnished holiday lettings tax regime from 1 April 2025, any property losses from furnished holiday lettings included in the Restricted Losses screen can be entered in No Longer Available in order to remove any C/Fwd amount.
Losses can be transferred into UK Property Losses using the Transferred in input on the Loss Utilisation screen.
CT600 Box 631 - Very Large Companies Indicator
In release 24.1, we fixed am issue whereby the xml submitted to HMRC did not include the flag that a company was ‘Very Large’ for quarterly instalment purposes. The user interface and the system generated PDF displayed the correct information.
HMRC have asked us to remind customers that to ensure this flag is included, upgrading to the latest version is necessary. If you are still on a version prior to 24.1, please update to the latest release.