COM80037 - Interest: how interest is calculated: interest on carry-back / S458 CTA 2010 (formerly 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 S458 CTA 2010 (formerly S419(4) ICTA 1988)
The guide is presented as follows
Banking Operations Office action on receipt of form CT250(P)
| 1. | Use the information provided on form CT250(P) or memo to determine the effect of the displacement of a relief or S458 CTA 2010 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) |
| Note: You must not amend the interest charge for carry-backs or S458 CTA 2010 relief unless you hold form CT250(P) and have obtained authority on form AZ44 | |
| 3. | 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
| 4. | 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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| 5. | When the Debt Management Office receives that information, they must resume normal collection action for the outstanding liability |
| 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
| 6. | Where the Pursuit Status is either RFI (Word 31KB) or PRFI (Word 28KB) Banking Operations must |
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| 7. | 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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