COM122074 - Repayments/reallocations: non automatic reallocations: surrender outside S963 CTA 210 (Action Guide)

To reallocate a repayment to another company when Section 963 (S963) Corporation Tax Act (CTA) 2010 does not apply, consider steps 1-10 below.

1. Use function MAPS (Maintain AP Signals) for the surrendering company and select ‘Reallocations & Repayments’ from the drop down menu for the Inhibitions field against the Accounting Period (AP) for which the overpayment will arise.

2. Create the overpayment on the surrendering company.

3. Use function VPPD (View Payment and Posting Details) on the surrendering company to confirm the amount of the overpayment available for reallocation.

4. Use function VPPD on the recipient company to check the amount of the unpaid liability.

5. Use function REOD (Direct Reallocation Out Of COTAX) and choose the option ‘Reallocate a specific amount’ to put the overpayment into OAS.

Please note that: Under no circumstances should Technical Caseworkers use the ` Make a Group tax refund surrender’ or ‘Make a Quarterly Instalment Payer (QIP) Regulation 9 Surrender’ option in function REWD (Direct Reallocation Within COTAX) to handle these cases. Only use that facility for genuine S963 surrenders.

6. Make the reallocation.

  Please note that:

  • you must not reallocate more than the amount of the unpaid liability
  • COTAX cannot calculate RPI when you use this function, as it cannot know when the effective date of the reallocation will be

7. Confirm the reallocation and make a note of the OAS (Overpayment Accounting Summary) reference number.

8. Use function MAPS and select ‘None’ from the drop down menu for the Inhibitions field.

9. On the same day complete the Intelligent Payment Processing (IPP) single form.

  • Please ensure you enter the EDP (Effective Date of Payment) for the payment in the COTAX notes, the IPP does not current have the facility to enter the EDP on amounts. This will ensure the correct Repayment Interest is posted to the customer account