Where, in respect of any accounting period, there is surplus
shadow ACT, the amount is to be treated as if it were shadow ACT
paid in respect of relevant distributions made by the company in
any of its accounting periods, beginning on or after 6 April 1999
and in the six preceding years.
The surplus is to be set, so far as possible, against the
liability for more recent before earlier accounting periods. The
amount allocated to each earlier accounting period is limited to
the available capacity except that, for the period beginning 24
months before the end of the accounting period for which the shadow
ACT is to be carried back, it can displace unrelieved surplus ACT
set against the company's liability.
A company has capacity for the accounting period for the period
1.1.2010 – 31.12 2010 of £1,000.
During that period it makes a distribution of £32,000
generating shadow ACT of £8,000.
It has unused unrelieved surplus ACT of £20,000.
The position for the accounting periods for the six previous
years is:
|
Accounting period ended | Capacity |
Shadow ACT unrelieved | Surplus ACT | |
| 31.12 2009 | £1,000 | £1,000 | ||
| 31.12.2008 | £1,000 | £500 | £500 | |
| 31.12.2007 | £2,000 | £2,000 | ||
| 31.12.2006 | £1,000 | £1,000 | ||
| 31.12.2005 | £1,000 | £1,000 | ||
| 31.12.2004 | £1,000 | £500 | £500 |
The shadow ACT is set first against the liability for the
accounting period ended 31.12.2010 (£1,000).
A further £1,000 is carried back to the accounting
period ended 31.12.2009, displacing the unrelieved surplus ACT and
increasing the company’s liability for that period by
£1,000. The balance of £6,000 is carried forward. It
cannot displace the unrelieved surplus ACT set against earlier
years.
Where the accounting period to which shadow ACT is to be
carried back began before but ended during the period of 24 months,
the amount of unrelieved surplus ACT falling to be displaced is
proportionately reduced by reference to the part of the accounting
period falling outside the period of 24 months.
A company has capacity for the accounting period for the period
1.1.2010 – 31.12 2010 of £1,000.
During that period it makes a distribution of £32,000
generating shadow ACT of £8,000.
It has unused unrelieved surplus ACT of £20,000.
The position for the accounting periods for the six previous
years is:
|
Accounting period ended | Capacity |
Shadow ACT unrelieved | Surplus ACT | |
| 31.12 2009 | £1,000 | £1,000 | ||
| 30.06.2009 | £1,000 | £500 | £500 | |
| 30.06.2008 | £2,000 | £2,000 | ||
| 30.06.2007 | £1,000 | £1,000 | ||
| 30.06.2006 | £1,000 | £1,000 | ||
| 30.06.2005 | £1,000 | £500 | £500 |
The shadow ACT is set first against the liability for the
accounting period ended 31.12.2010 (£1,000).
A further £1,000 is carried back to the accounting
period ended 31.12.2009, displacing the unrelieved surplus ACT and
increasing the company’s liability for that period by
£1,000.
A further £250 is carried back to the accounting period
ended 30.06.2009 displacing the shadow ACT utilised in the part of
that accounting period falling within the 24 month period referred
to in Regulation 12 (7).
This increases the company’s liability for that period
by £250.
The balance of £5,750 is carried forward. It cannot
displace the unrelieved surplus ACT set against earlier years.
Any remaining surplus is carried forward and treated as if it
were shadow ACT paid in the next accounting period.
