COM51063 - Claims / reliefs: ACT: correcting interest - responsible CT office (Action Guide)

ACT carried back displaces a relief and a repayment is due

Steps 1 - 5

ACT carried back displaces a relief and a repayment is not due

Steps 6 - 7

Displaced ACT caused by a loss carry-back is itself carried back to an earlier AP

Step 8

Repayment / reallocation already made as a result of a carry-back

Steps 9 - 11

Repayment / reallocation already made as a result of a carry-back and you amend the carry-back

Steps 12 - 13

1.

Use Function MAPS (Maintain AP Signals) to set the Clerical Interest Indicator (CII (Word 32KB))). For more information see the Action Guide Clerical Interest Indicator (COM51072)

2.

If you are in a position to amend the assessment

• Use Function PAST (Prepare Full Assessment) to give effect to the ACT carry-back

3.

If you can not make the assessment

• Use Function RECB (Record Amounts Carried Back) to post the carry-back of the ACT

4.

Send a memo to the Accounts Office to show that no late payment interest is due

5.

Use Function DIRR (Direct Repayment) to make the repayment

6.

If you are in a position to make the assessment

• Use Function PAST (Prepare Full Assessment) to give effect to the ACT carry-back

When you get to screen COT120M amend the EDP shown for the ACT carry-back to the due date for the AP to which you have carried back the ACT

7.

If you can not make the assessment

• Use Function RECB (Record Amounts Carried Back) to post the carry-back of the ACT

When you get to screen COT193D/E amend the EDP shown for the ACT carry-back to the due date for the AP to which you have carried back the ACT

8.

Use Function PAST (Prepare Full Assessment) to give effect to the ACT carry-back by amending the assessment)

When you get to screen COT120M amend the EDP shown for the ACT carry-back to the due date for the AP from which the losses that displaced the ACT were carried back

Note: COTAX will have set the Clerical Interest Indicator automatically after it made the earlier repayment or reallocation

9.

Use Function PAST (Prepare Full Assessment) to give effect to the ACT carry-back by amending the assessment

10.

Send a memo using the daily Envopak service to the Accounts Office to show that no late payment interest is due

11.

Make the repayment using Function DIRR (Direct Repayment)

Note: COTAX set the clerical interest indicator automatically after it made the earlier repayment or reallocation

12.

If you are increasing the carry-back

• Use Function PAST (Prepare Full Assessment) to give effect to the ACT carry-back by amending the assessment

• Send a memo to the Accounts Office to show that no late payment interest is due

• Make the repayment using Function DIRR (Direct Repayment)

13.

If you are reducing the carry-back

• You will need to make an assessment under S252 ICTA 1988. Follow the guidance in Company Tax (CT) Manual at CT2026 and COM23130