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HMRC internal manual

COTAX Manual

Claims / reliefs: loss and non-trading deficits carry-back: multiple assessments or amendments

You sometimes need to make or amend two or more assessments at the same time as the result of a carry-back of losses or non-trading deficits.

COTAX immediately deals with any overpayment or additional liability that is created when you confirm the individual assessment. You must therefore inhibit the repayment before making or amending any assessments if the actions you take will create:

  • an additional liability for one or more APs and
  • an overpayment for another AP or APs.

You must also remove the inhibit signal after making or amending the assessments. See COM121000 for more information.

This makes COTAX set-off the potential repayment against the fresh liability, rather than issuing a payment application and a repayment on the same day.

See COM50121 for a list of functions to use in particular situations.