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 (Word 28KB) is incorrect. Therefore it is necessary for you to liaise and take guidance from Banking Operations concerning the interest charge in any case where
- An AP holds a LOS posting type
And
- The CII (Word 32KB) indicator is set to ‘Y’
Note: 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 losses 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.