COM110120 | Pursuit: automatic and clerical pursuit: losses carried back

This information relates to Debt Management Office pursuit where surplus losses have been carried back.

Full information is given in the following sections at COM50000.

In brief, carry-backs of trading losses are treated by COTAX as payments with posting type LOS, and not as a reduction in the charge, which is effectively what they are.

In certain circumstances, the EDP for loss carry-backs and ACT is incorrect. Therefore, it is necessary for you to liaise and take guidance from HMRC Payments concerning the interest charge in any case where:

• an Accounting Period (AP) holds a LOS posting type

• the CII indicator (see COM95015) is set to 'Y'

Please note that: this does not apply to cases where the papers clearly show that the interest has been reviewed since the last posting action.

Where it is claimed that an incorrect amount of loss has been carried back, you must refer the papers to the office responsible for dealing with carry back.

For a list of functions to use in particular situations, see COM110121.

For legislation applying to this subject, see COM110122.