A company could make a claim to carry back surplus ACT
(ICTA88/S239 (3)).
All or part of the surplus could be carried back to any
accounting periods beginning in the six years preceding the
accounting period for which the surplus arose (but see below). The
ACT was then treated as if it were ACT paid in respect of a
distribution made by the company in that earlier accounting period.
Where such a claim was made, the provisions of ICTA88/S239
(2) (
CTM20120 to CTM20150) applied to
determine the maximum amount of ACT which could be set-off against
the CT chargeable for each of the previous accounting periods.
Section 239 (3) relief was set against CT on profits of a
more recent accounting period before it was set against CT of an
earlier accounting period.
When surplus ACT had been set-off against an earlier
liability under Section 239 (1) it had been 'dealt with' under
Section 293 (3) (see ICTA88/S239 (4) and ICTA88/S240 (7)). Thus if
a Section 239 (3) claim was settled (see
CTM20200), but the CT liability for the
earlier period was reduced in some other way so that effect could
not be given to the Section 239 (3) claim, then the surplus ACT
reverted to being surplus ACT of the year when it originally arose
(and from which it was carried back). It had then not been
‘dealt with’ and could either be carried forward under
Section 239 (4), carried back to another year under Section 239 (3)
or surrendered under Section 240 (1).
When a change in ownership of a company occurred on or after
16 March 1993, the company may have been unable to carry back ACT
through the change in ownership (
CTM20300).
