Bank interest after a company has stopped trading: do you still file a CT600?
Short version. You can still need a CT600 after trading stops if the company receives taxable bank interest. Non-trading interest goes in box 170. A company holding only a bank deposit can be a CIHC and pay the full main rate.
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1. Understand the treatment
Ending the trade and ending the company’s Corporation Tax obligations are different events. Under CTA 2009 section 10, cessation ends the current accounting period. Under section 9, the next begins immediately afterwards if the company is still within the charge. If it leaves the charge, do not invent an uninterrupted later period.
Non-trading bank interest is included in box 170 under the loan-relationship rules. A post-cessation receipt from the former trade has different treatment. If HMRC has issued a notice to file, do not ignore it because the company has stopped selling.
HMRC CTM03951 explains that a close company simply holding a bank deposit falls within CIHC status. Check the complete purpose test and limited winding-up exception for the actual period. Preparing a voluntary strike-off does not itself establish that exception.
2. Fictional worked example
A fictional company stops trading on 31 December 2025. It remains within Corporation Tax, keeps only a bank deposit and receives £1,000 taxable interest in the later period beginning 1 January 2026. Assume it is a CIHC with no deductions or reliefs. Box 170 is £1,000, box 4 is 2 and tax at 25% is £250.
If one accounts period includes trading and the later interest, prepare each CT600 period’s figures separately. Long accounts can require two returns, each with its own treatment.
3. Common mistakes
- Calling interest trading turnover or a box 205 receipt.
- Assuming a small interest amount automatically qualifies for 19%.
- Using the accounts date instead of the cessation date for the trading return.
4. How to file
SimpleCompanyTax prepares supported micro-company returns from your figures. Follow the exact filing steps and review each return’s computation before approving the filing. For more background, read other later receipts and returns before voluntary strike-off.
This is general guidance. Your company’s treatment depends on its circumstances. Decide the classification and claims yourself or with your accountant.