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HMRC internal manual

COTAX Manual

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

To reallocate a repayment to another company when S963 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 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 RINT (Request Repayment Interest Calculation) to calculate the repayment interest (RPI) due on the amount you are going to set off, and make a note of the total.
5. Use Function VPPD on the recipient company to check the amount of the unpaid liability.
6. Use Function REOD (Direct Reallocation Out Of COTAX) and choose the option ‘Reallocate a specific amount’ to put the overpayment into OAS.
  Note: Under no circumstances should Technical Caseworkers use the `Make a section 102 surrender’ option in Function REWD (Direct Reallocation Within COTAX) to handle these cases. Only use that facility for genuine Section 963 surrenders.
7. Make the reallocation.
  1. Do not reallocate more than the amount of the unpaid liability.
  1. COTAX cannot calculate RPI when you use this function, as it cannot know when the effective date of the reallocation will be.
8. Confirm the reallocation and make a note of the OAS reference number.
9. Use Function MAPS and select ‘None’ from the drop down menu for the Inhibitions field.
10. On the same day email the CT251 to:
  * CT Unit, CT Ops Enquiry (DMB Banking) if you work outside of the LBS
  * CT Unit, LBS Enquiry (DMB Banking) if you work in the LBS.
  Make sure when completing the CT251 you enter:
  * the full UTR of the recipient company
  * the amount of RPI due from (4) above.
  If the combined total of tax and RPI exceeds the liability on the AP of the recipient company, tell the Banking Operations Office to repay any balance of the overpayment to the surrendering company.