COM50113 - Claims / reliefs: loss and non-trading deficits carry-back: allowing the carry-back (Action Guide)

To give effect to a claim for carry-back relief for a CTSA or CTPF AP, consider steps 1 - 20 below. The guide is presented as follows

Initial Action Steps 1 - 8
Making an entry in screen COT120M Steps 9 - 19
Making the assessment after Function RECB has been used to record a carry back of losses (CTPF APs) Step 20

Initial Action

1. Use Function MAPS (Maintain AP Signals) to set the Inhibit Reallocations and Repayments (Manual) signal to ’Y’
2. Set the Clerical Interest Indicator (CII (Word 32KB)) if necessary. See subjects ‘Changing the EDP’ (COM50080) and ‘Clerical Interest Indicator’ (COM50090)
3. If the self assessment has not been recorded for a CTSA AP but the return included the loss or non-trading deficit carry-back
 
  • Use Function RAMA (Record / Amend Assessment) to give effect to the loss carry-back
4. If an assessment has not been made for a CTPF AP but the return included the loss or non-trading deficit carry-back
 
  • Use Function PASR (Prepare Assessment Based On Return) to give effect for the loss carry-back
5. If the self assessment has already been recorded for a CTSA AP and the return does not contain the loss or non-trading deficit carry-back
 
  • Use Function RAMA (Record / Amend Assessment) to give effect for the loss carry back
6. If an assessment has been made already or no assessment has been made but the return does not contain the loss or non-trading deficit carry-back
 
  • Use Function PAST (Prepare Full Assessment) to give effect for the loss carry-back
7. If you are not in a position to make or amend the assessment see subject ‘C/B Loss & Non-Trade Deficit - No Asst’ (COM50140)
8. In Function RAMA, PAST or PASR
 
  • Enter the end date of each AP from which an amount is carried back in the format 99/99/99
 
  • Enter losses from later APs before losses for earlier ones
 

Example, if you are relieving against AP ended 31/12/94 losses carried back from APs ended 31/12/95 £500, 31/12/96 £400 and 31/12/97 £300, enter them as
 
    • 31/12/97 300
 
    • 31/12/96 400
 
    • 31/12/95 500
 
  • Do not enter more than one carry-back of the same type (Loss, ACT or deficit) from the same AP against a single AP

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Making an entry in screen COT120M

9. If the profits before the carry-back were charged at the main CT rate with no Marginal Relief (previously MSCR)
 
  • Answer the question ‘MSCR pre and SCR post c / b?’ ‘N’
10. If the profits before and after the carry-back were charged at the main CT rate with Marginal Relief
 
  • Answer the question ‘MSCR pre and SCR post c / b?’ ‘N’
11. If the profits before the carry-back were charged at the main CT rate with Marginal Relief and charged at the small profits rate after the carry-back
 
  • Answer the question ‘MSCR pre and SCR post c / b?’ ‘Y’
12. If the profits before the carry-back were charged at the small profits rate
 
  • Answer the question ‘MSCR pre and SCR post c / b?’ ‘N’
13. If the profits before the carry-back were charged at the small profits rate with marginal starting rate relief and at the small profits rate without the relief after the carry-back
 
  • Answer the question ‘MSCR pre and SCR post c / b? ‘Y’
14. Change the EDP (Word 41KB) on this screen if required. See subject Changing the EDP (COM50080) in this section
15. If you have carried back more than one loss to the AP and you need to change the default order of processing see subject Order Of Loss Processing (COM50100)
16. Complete the assessment
17. Use Function VPPD (View Payment and Posting Details) to check that the ‘LOS’ posting correctly reflects the tax effect of the carry-back and that the EDP is correct
18. If the ‘LOS’ posting is correct
 
  • Use Function MAPS (Maintain AP Signals) to unset the Inhibit Reallocations and Repayments (Manual) signal
 
  • If the CII is set, a relief has been displaced, and a repayment is due
 
    • Issue a form CT250(P) to the Accounts Office to notify the interest position. For more information see subject Clerical Interest Indicator (COM50090) in this section
 
    • Use Function DIRR (Direct Repayment) to make the repayment due
 

Note: If CII is not set any repayment due will be made automatically
19. If the ‘LOS’ posting is not correct
 
  • Telephone the COTAX Business Help Desk(This text has been withheld because of exemptions in the Freedom of Information Act 2000) 

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Making the assessment after Function RECB has been used to record a carry back of losses (CTPF APs)

20. Use Function PAST or PASR to
 
  • Enter all carry-backs in the assessment in the usual way, (see Step 8 above), regardless of any previous use of Function RECB
 
  • Set any non-standard EDP again in screen COT120M. For more information see subject Changing the EDP (COM50080)

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