The effects of the changes referred to at CTM20510 were:
Because of the break in the link in 1993-94 it was necessary to
make various legislative changes to ensure the existing tax code
still worked correctly. These changes are outlined in subsequent
The maximum amount of ACT that could be set against a company's CT liability was governed by the rate of ACT (ICTA88/S239 (2), CTM20150).
Where the rate of ACT expressed by reference to the sum of the distribution and ACT was less than the small companies rate of CT, (as was the case from 6 April 1993), a company could not fully cover its CT liability with ACT set-off.
For an accounting period straddling 5 April a change in the rate of ACT meant that a company's results had to be apportioned (ICTA88/S246 (5), CTM22260).