SolvedCOM153063 | CT Pay and File: claims/reliefs: Advance Corporation Tax (ACT): correcting interest, responsible CT office (Action Guide)
From HM Revenue & Customs · COTAX Manual
To correct the interest that COTAX would charge, consider steps 1 - 13 below. The guide is presented as follows.
Advance Corporation Tax (ACT) carried back displaces a relief and a repayment is not due Steps 6 - 7
Repayment / reallocation already made as a result of a carry-back and you amend the carry-back Steps 12 - 13
Advance Corporation Tax (ACT) carried back displaces a relief and a repayment is due
1. Use function MAPS (Maintain AP Signals) to set the Clerical Interest Indicator (CII (see COM95015)). See the Action Guide at COM153073 for more information.
2. If you are in a position to amend the assessment, use function PAST (Prepare Full Assessment) to give effect to the ACT carry-back.
3. If you can not make the assessment, use function RECB (Record Amounts Carried Back) to post the carry-back of the ACT.
4. Send a memo to the Accounts Office to show that no late payment interest is due.
5. Use function DIRR (Direct Repayment) to make the repayment.
Advance Corporation Tax (ACT) carried back displaces a relief and a repayment is not due
6. If you are in a position to make the assessment use function PAST (Prepare Full Assessment) to give effect to the ACT carry-back.
On screen COT120M amend the EDP shown for the ACT carry-back to the due date for the AP to which you have carried back the ACT.
7. If you can not make the assessment, use function RECB (Record Amounts Carried Back) to post the carry-back of the ACT.
On screen COT193D/E amend the EDP shown for the ACT carry-back to the due date for the AP to which you have carried back the ACT.
Displaced Advance Corporation Tax (ACT) caused by a loss carry-back is itself carried back to an earlier Accounting Period (AP)
8. Use function PAST (Prepare Full Assessment) to give effect to the ACT carry-back by amending the assessment):
on screen COT120M amend the EDP shown for the ACT carry-back to the due date for the AP from which the losses that displaced the ACT were carried back
Repayment/reallocation already made as a result of a carry-back
COTAX set the Clerical Interest Indicator automatically after it made the earlier repayment or reallocation.
9. Use function PAST (Prepare Full Assessment) to give effect to the ACT carry-back by amending the assessment.
10. Send a memo to HMRC Payments to show that no late payment interest is due.
11. Make the repayment using function DIRR (Direct Repayment).
Repayment/reallocation already made as a result of a carry-back and you amend the carry-back
COTAX set the clerical interest indicator automatically after it made the earlier repayment or reallocation.
12. If you are increasing the carry-back:
use function PAST (Prepare Full Assessment) to give effect to the ACT carry-back by amending the assessment
send a memo to HMRC Payments to show that no late payment interest is due
make the repayment using function DIRR (Direct Repayment)