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HMRC internal manual

COTAX Manual

HM Revenue & Customs
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CT Pay and File: claims / reliefs: ACT Claims / reliefs: ACT: introduction

This section is aimed primarily at offices with responsibility for a company’s COTAX record. However, some information and examples may be of interest to Accounts Office and Debt Management office staff.

Examples are included in the relevant subjects for:

  • ACT carry- back and late payment interest
  • ACT carry- back and repayment interest
  • correcting interest - responsible processing office
  • clerical interest indicator.

Debt Management office and the Accounts Office are more involved with the interest consequences of ACT carry-backs than with the carry-back itself. There is guidance at COM80000 onwards on dealing with interest and objections received against charges made.

A company can claim under S239(3) ICTA 1988 to carry back all or part of its surplus ACT of an AP. It can treat the surplus as ACT paid in respect of distributions made in APs beginning in the six previous years.

There are interest consequences of an ACT carry-back and COTAX is unable to handle some of them without intervention. This is when:

  • there has already been a repayment or reallocation for the AP as a result of a carry-back
  • you amend the amount of a carry-back
  • the carry-back displaces another relief or set-off that you would have allowed if you had not given relief for the carry-back
  • the carry-back is of surplus ACT some or all of which has become surplus because of the carry-back of a loss from a still later AP.