COM153080 - CT Pay and File: claims/reliefs: ACT: how to give act carry-back in assessment
Before making or amending an assessment to give effect to an Advance Corporation Tax (ACT) carry-back see section:
Advance Corporation Tax (ACT) carry-back claimed in the return
COTAX does not allow you to fastpath assess any Accounting Period (AP) if the return includes ACT carried back from a later AP. You must use function PAST (Prepare Full Assessment) or function PASR (Prepare Assessment Based On Return) to make any assessment including carry-backs.
You must enter each amount of ACT carried back separately, showing the AP from which it comes.
Please note that: This may involve you having to break down the figure for ACT set-off shown in the return.
For most cases, COTAX automatically works out for each amount carried back:
- the Effective Date of Payment (EDP (see Glossary for more information)) for interest purposes and, if relevant
- what is allowable as tax paid at the 18 month point for tax geared penalty purposes
Although COTAX shows individual amounts carried back, the notice of assessment shows single total figures for ACT carried back or set-off in the assessment.
Claim for Advance Corporation Tax (ACT) carry-back after assessment made
You can usually deal with a carry-back to a CT Pay and File Accounting Period (AP) by amending an existing assessment using function PAST (Prepare Full Assessment). If you have not yet made an assessment for the AP, you should consider making it.
If you need to give credit for a carry-back in the following circumstances, consider using function RECB (Record Amounts Carried Back):
- carry-back not reflected in the return logged for the receiving AP
- you have not made the assessment
- you are not in a position to make the assessment at once
See COM153100 for more information.
Making the assessment after a carry back has been recorded using function RECB
When you amend or make the assessment using function PAST (Prepare Full assessment), enter any carry-backs in the appropriate fields in screen COT120F and note that:
- the carry-back is not automatically entered on screen COT120F or reflected in the assessment
- payment type postings resulting from your use of function RECB are reversed
- any non-standard EDP you entered in function RECB is lost
Please note that: COTAX warns you of this. If you have posted a carry-back using function (Record Amounts carried Back) RECB and later use the assessing function, the message ‘WARNING: CARRY-BACKS ALREADY PRESENT ON THIS ACCOUNTING PERIOD’ appears when you enter screen COT120F.
See COM153081 for a list of functions to use in particular situations.