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HMRC internal manual

COTAX Manual

CT Pay and File: claims / reliefs: ACT: carry-back ACT - no assessment made

You use Function RECB (Record Amounts Carried Back) to allow a carry-back when:

  • a return has been logged for an AP
  • you later receive an acceptable claim that results in a carry-back to that AP
  • you have not yet made an assessment for that AP and you are not in a position to make one
  • the CT liability for that AP is reduced by the carry-back.

The figure to enter in Function RECB is the tax effect of the carry-back. In the case of ACT this is the amount of ACT you want to carry back.

You can also use Function RECB if, unusually you need to reduce the amount of an existing carry-back relief, whether it was given using Function RECB or in an assessment, and you are still not in a position to make or amend the assessment.

You cannot use Function RECB to reduce an existing carry-back out of which a repayment has been made. You must:

  • set the Clerical Interest Indicator (CII). See COM153070 for more information
  • use Function ARTA (Amend Returned Tax Amount) to increase the charge. That function allows you to put the correct tax into charge but cannot correct the interest position.

If you use both Function ARTA and Function RECB, COTAX assumes that the figure you record in Function ARTA for Total CT due is the liability net of any carry back relief posted using Function RECB.

Example (Word 30KB) illustrates such a case.

See COM153101 for a list of functions to use in particular situations.