COM51100 - Claims / reliefs: ACT: carry-back ACT - no assessment made

You need to use Function RECB (Record Amounts Carried Back) to allow a carry-back when

• A return has been logged for an AP

• You later receive an acceptable claim that results in a carry-back to that AP

• You have not yet made an assessment for that AP and you are not in a position to make one

• The CT liability for that AP is reduced by the carry-back

The figure to enter in Function RECB is the tax effect of the carry-back. In the case of ACT this will be the amount of ACT you want to carry back

You can also use Function RECB if, unusually

• You need to reduce the amount of an existing carry-back relief, whether it was given effect using Function RECB or in an assessment

• You are not in a position to make or amend the assessment

You cannot use Function RECB to reduce an existing carry-back out of which a repayment has been made. The only option is to set the Clerical Interest Indicator (CII). For more information see subject ‘Clerical Interest Indicator’ (COM51070).

In these circumstances you must use Function ARTA (Amend Returned Tax Amount) to increase the charge. Function ARTA allows you to put the correct tax into charge, but it cannot correct the interest position.

If you use both Function ARTA and Function RECB COTAX assumes that the figure you record in Function ARTA for Total CT due is the liability net of any carry back relief posted using Function RECB.

Example (Word 30KB) illustrates such a case.

For a list of functions to use in particular situations, see COM51101.