COM53020 - Claims / reliefs: other reliefs: capital allowances - giving effect to claims
This subject is presented as follows:
Capital allowances claim made after the time limit for amending the return has expired |
Capital allowances claim made in a return
Where a paper return for a CTSA AP includes a capital allowances claim that is reflected in the company’s self assessment (Word 28KB), the Clerical Caseworker normally uses Function CRTN (Capture Rest of Return) to capture the return details and record the company’s self assessment.
Where COTAX will not allow the Clerical Caseworker to record the self assessment because of other entries on the return, a CT Co-ordinator uses the Record a Self Assessment option in Function RAMA (Record Amend / Assessment) to record the self assessment.
If the return is submitted through CT Online, the self assessment will automatically be recorded, subject to the usual validation checks. If any manual intervention is required, the case will appear on a work list.
For more information see subject ‘Recording a Self Assessment’ (COM23150) in the ‘Assessing’ business area
Capital allowances claim made by amending a return
If a company has already submitted its return for a CTSA AP, it may make capital allowances claims by amending its return.
If the claim is made on paper within the time limit for amending the return, the Technical Caseworker uses the Record a Taxpayer Amendment option in Function RAMA to record the capital allowances claim on COTAX.
If the amendment is made electronically using CT Online, it is recorded automatically by COTAX. It will not appear on any work list for further action unless box 171 (Capital allowances first-year tax credit payable) has been completed - in which case it will be on MRPL (Manual Repayments List) - or there are other entries or attachments that need manual intervention.
For more information see subject ‘Amendments to CTSA Returns’ (COM23010) in the ‘Assessing’ business area
Capital allowances claim made after the time limit for amending the return has expired
If the claim is made on paper after the time limit for amending the return has expired, the Technical Caseworker must
- NOT use the Record a Taxpayer Amendment option in Function RAMA
- Write to the company explaining why the capital allowances claim cannot be accepted
CT Online will not allow the submission of an amendment after the time limit has expired.
Note: Claims to capital allowances for a CTSA AP must be made in, or by amendment of, the company’s tax return. It follows that
- Schedule 1A TMA 1970 (claims or elections that cannot be dealt with by inclusion in a return either as first made or by amendment) does not apply to capital allowances claims
- You should never use the Process a Claim option in Function RAMA to record a capital allowances claim
Capital allowances claim for one AP that reduces the amount of capital allowances available for another AP
If the effect of making a capital allowances claim for one AP is to reduce the amount of capital allowances available in another AP for which the company has already made its return
- The company must amend that return within 30 days
If the company does so, the Technical Caseworker uses the Record a Taxpayer Amendment option in Function RAMA to record on COTAX the consequential amendment to the capital allowances claim for that return.
If the company does not make the necessary amendment within 30 days, the Technical Caseworker can
- Use the Prepare a Revenue Amendment option in Function RAMA to amend the return to make it consistent with the reduced amount of capital allowances available
- Enter a message in the free format message fields on screen COT121G, for example
For a list of functions to use in particular situations, see COM53012.
For legislation applying to this subject, see COM53013.
