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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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CT Pay and File: claims / reliefs: ACT: surplus ACT created by loss carry-back

Late Payment Interest

S87A(7) TMA 1970 deals with late payment interest when the surplus ACT created by a loss carried back (other than against an AP falling wholly within the previous 12 months) is itself carried back against a liability that is unpaid.

It ensures that late payment interest is charged to the due date of the AP from which the loss was carried back.

This provision applies when the period to which the loss is carried back is a CT Pay and File AP.

Repayment Interest

S826(7AA) ICTA 1988 deals with repayment interest when the surplus ACT created by a loss carried back (other than against an AP falling wholly within the previous 12 months) is itself carried back against a liability that is paid.

It ensures that repayment interest is allowed only from the due date of the AP from which the loss relief is carried back until the date when the repayment is made.

This provision applies when the period to which the loss is carried back is a CT Pay and File AP.

See COM153041 for legislation applying to this subject.