COM80037 - Interest: how interest is calculated: interest on carry-back / S419(4) ICTA 1988 relief (Action Guide)
To ensure interest is calculated correctly on amounts in respect of the following consider steps 1 - 8 below
- ACT, trading losses and non-trading deficits carried back
And
- Claims under Section 419(4) ICTA 1988
The guide is presented as follows
Banking Operations Office action on receipt of form CT250(P)
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1. |
Use the information provided on form CT250(P) to determine the effect of the carry-back or Section 419(4) ICTA 1988 relief on interest. To do this you may need to use |
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And |
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2. |
Use Function RMIC (Raise Manual Interest Charge) to charge the correct amount of interest. For more information see the Action Guides ‘Late payment Interest: Clerical Charge (Banking Operations)’ (COM80034) and ‘Credit / Debit Interest: Clerical Charge (Banking Operations)’ (COM80085) |
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Note: You must not amend the interest charge for carry-backs or Section 419(4) ICTA 1988 relief unless you hold form CT250(P) and have obtained authority on form AZ44 |
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Use Function IINT (Issue Interest Computation) to issue an interest computation to the company and / or the agent |
Where the AP is subject to Clerical Pursuit at the Debt Management Office
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Where the Pursuit Status is either LA(Word 28KB) or LA-ENF (Word 27KB) or PLA (Word 28KB), the Banking Operations Office must |
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When the Debt Management Office receives that information, they must resume normal collection action for the outstanding liability |
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Note: Where no interest charge is appropriate delete the case from the CIIW (Clerical Interest Indicator Work List’ or the CDIW (Credit Interest Indicator Work List) |
Where the AP is subject to Clerical Pursuit at the Banking Operations Office
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Where the Pursuit Status is either RFI (Word 31KB) or PRFI (Word 28KB) Banking Operations must |
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Where the liability remains unpaid after issuing the clerical DN2 |
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8. |
Where the AP remains overpaid Banking Operations must |
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