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HMRC internal manual

Company Taxation Manual

ACT: set-off against CT on profits: withdrawal or variation of claims

There was no provision in the legislation for withdrawing or varying claims after they had been made, but any request for a ICTA88/S239 (3) claim to be withdrawn or varied was dealt with as follows.

  1. If the claim had been settled, a request for a withdrawal or reduction was refused. The company could however make new or supplementary claims within the two-year time limit.
  2. If the claim had not been settled, a request for a claim to be withdrawn, or for a new claim made within the time limit to be admitted, could be accepted.

A claim was settled when:

  • a written decision was given on the claim and the company did not appeal against it, or
  • if the decision was not conveyed in writing, when an assessment in which the ACT was allowed became final and conclusive.

When a written decision was given, the claim was then settled even if the ACT had not then been set-off for the earlier period.