COM30010 - Background: company taxation overview: advance corporation tax

Advance Corporation Tax (ACT) was scrapped with effect from 6 April 1999.

Arrangements for the use of surplus ACT, built up in the period to the abolition date, substantially preserved companies’ then existing expectations as to its recovery.

Those expectations were achieved through a system of ‘Shadow ACT’, which allows companies to recover past surplus ACT, within prescribed limits.

For further details of the operation of ‘Shadow ACT’, see section ‘ACT’ (COM51000 onwards) in the ‘Claims/Reliefs’ business area.