COM153014 - CT Pay and File: claims / reliefs: ACT: COTAX treatment of ACT carry-back, Example

Example  

The assessment for AP 01/01/93 to 31/12/93 shows. 

Trading profits 

Case III income 

30,000 

10,000 

 

Profits chargeable at 25% 

Total CT chargeable 

 

40,000 

10,000 

 

ACT carried back from 

AP 01/01/94 to 31/12/94 

 

 

(6,000) 

 

CT due 

 

4,000 

 

The resulting postings on the computer record (which you can see in function VPPD (View Payment and Posting Details)) are. 

Charge (before the carry- back) 

 

ASM 10,000 

 

Payment (ACT carry- back) 

 

ACT 6,000 (EDP 01/10/95) 

 

If you make an assessment including an ACT carry- back, the computer translates the carry-back into an amount of tax ‘paid'.  This figure is the difference between: 

  • the CT liability that would result from the figures in the assessment if the relief for ACT carried back was not present 

  • the CT payable taking the carry-back into account