Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Company Taxation Manual

From
HM Revenue & Customs
Updated
, see all updates

Corporation Tax self-assessment (CTSA): the payment obligation: ACT carry-back - repayment interest

A claim to carry back surplus ACT may result in a repayment of CT or IT for the earlier accounting period to which the relief is carried back. In such circumstances ICTA88/S826 (7) provides that repayment interest is only payable from the due and payable date for the later accounting period, in which the surplus ACT arose.

Example

Accounting period 1.1.94 to 31.12.94 Accounting period 1.1.95 to 31.12.95
   
CT liability £50,000 Surplus ACT £10,000
Paid £50,000 on due date 1.10.95 Claim to carry-back to accounting period ended 31.12.94

A repayment of £10,000 is due to the company. Repayment interest is only payable from 1.10.96 (the due and payable date for the later accounting period) to the date on which the order for the repayment is issued.