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HMRC internal manual

COTAX Manual

CT Pay and File: claims / reliefs: ACT: ACT carry-back and repayment interest

S826(7) ICTA 1988

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

Example 1 (Word 30KB) illustrates such a case.

Repayment Interest - Carry back to pre CT Pay and File AP

If the ACT carried back is to an earlier period before the start of CT Pay and File repayment supplement is paid under S825 ICTA 1988.

Repayment supplement is allowed as if it were a repayment for the AP in which the surplus ACT arose. For more information see Company Tax Manual at CTM20210.

See COM153031 For legislation applying to this subject.