Advance corporation tax (ACT)

A tax which was abolished with effect from 6 April 1999. When a company (other than an international headquarters company in respect of a foreign income dividend ( www.practicallaw.com/9-107-5778) ) made a qualifying distribution ( www.practicallaw.com/9-107-7094) prior to this date, it paid ACT to HM Revenue & Customs ( www.practicallaw.com/6-200-6399) . The rate of ACT was fixed by reference to the lower rate of income tax. ACT was effectively a pre-payment of the company’s corporation tax ( www.practicallaw.com/1-107-5999) liability. A company with surplus ACT ( www.practicallaw.com/7-107-7349) built up prior to 6 April 1999 may use the shadow ACT ( www.practicallaw.com/1-107-7248) rules to recover the ACT paid in certain circumstances.

For more detail, see Practice note, Shadow ACT ( www.practicallaw.com/7-366-8038) .

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247245032470", "objName" : "Advance corporation tax (ACT)", "userID" : "2", "objUrl" : "http://uk.practicallaw.com/cs/Satellite/resource/2-107-6371?null", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "true", "analyticsPermCookie" : "2-3b01f5d1:15b1b7e04e5:1b7f", "analyticsSessionCookie" : "2-3b01f5d1:15b1b7e04e5:1b80", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }