CTM18230 - Shadow ACT: unrelieved surplus ACT

FA98/S32 (6), SI1999/358, Reg. 3 (1)

'Unrelieved surplus ACT' is defined as 'the ACT (if any) which, apart from FA98/SCH3/PARA12 (3) but otherwise in accordance with that paragraph, would be treated by virtue of ICTA88/S239 (4) as paid in respect of distributions made by a company in the first accounting period of the company to begin on or after 6 April 1999'.

It is in effect the amount which, had the provision for carry forward not ceased to have effect, would have been carried forward from 6 April 1999. The amount may not necessarily be the amount that satisfies this description at 6 April 1999. It might be altered by, for example, a claim made after 6 April 1999 to surrender ACT or to carry back the surplus or part of the surplus of an earlier accounting period. As unrelieved surplus ACT cannot be surrendered, there is a real prospect of unused ACT being repositioned in a group as a result of a claim under ICTA88/S240 (1) in respect of an accounting period beginning before 6 April 1999.