COM110120 - Pursuit: automatic and clerical pursuit: surplus ACT or losses carried back

This information relates to Debt Management Office pursuit where surplus ACT or losses carried back are involved.

Full information is given in the following sections in the ‘Claims / Reliefs’ business area

• ‘Carry-Backs Of Losses’
• ‘Carry-Backs Of ACT’

In brief, carry-backs of ACT or trading losses are treated by COTAX as payments with posting types of ACT and LOS, and not as reductions in the charge which is effectively what they are.

In certain circumstances the EDP for ACT and loss carry-backs (Word 28KB) will be incorrect. Therefore it is necessary for you to liaise and take guidance from Banking Operations concerning the interest charge in any case where

• An AP holds an ACT or LOS posting type

• The CII (Word 32KB) indicator is set to 'Y'

Note: This does not apply to cases where the papers clearly show that the interest has been reviewed since the last posting action.

Where it is claimed that an incorrect amount of ACT or losses has been carried back you must refer the papers to the office responsible for dealing with carry backs.

For a list of functions to use in particular situations, see COM110121.

For legislation applying to this subject, see COM110122.