SolvedCOM153014 | CT Pay and File: claims / reliefs: ACT: COTAX treatment of ACT carry-back, Example
From HM Revenue & Customs · COTAX Manual
Example
The assessment for AP 01/01/93 to 31/12/93 shows.
| Trading profitsCase III income | 30,00010,000 |
| Profits chargeable at 25%Total CT chargeable | 40,00010,000 |
| ACT carried back fromAP 01/01/94 to 31/12/94 | (6,000) |
| CT due | 4,000 |
The resulting postings on the computer record (which you can see in function VPPD (View Payment and Posting Details)) are.
| Charge (before the carry- back) | ASM 10,000 |
| Payment (ACT carry- back) | ACT 6,000 (EDP 01/10/95) |
If you make an assessment including an ACT carry- back, the computer translates the carry-back into an amount of tax ‘paid'. This figure is the difference between:
the CT liability that would result from the figures in the assessment if the relief for ACT carried back was not present
the CT payable taking the carry-back into account