CTM22085 - ACT collection: FID received in later return period

Where:

  • and a company has paid ACT in respect of FID paid in a return period,

and

  • receives FID in a later return period but in the same accounting period,

it has to make a return for that later return period.

The return is due even if no FID were paid or franked payments made in that later return period.

The company is then due a repayment of ACT paid and not already repaid.

The repayment is based on excess FID received of the later return period. A calculation ismade of the amount of ACT that would be payable if the excess receipt were instead a payment and limits the repayment to that amount.

ICTA88/SCH13/PARA3A (3)

This rule is modified for a company that treats itself as an international headquarters company (IHC), (CTM21505 and CTM22350).

If in an accounting period a company:

  • has accounted for ACT on an FID (and so has not treated itself as an IHC at the time of payment),
  • receives FID in a later return period falling within that accounting period,
  • in that later return period has paid an FID without accounting for ACT (and has treated itself as an IHC at the time of payment),

then the method of working out the repayment is modified. To calculate the amount ofACT previously paid that is repayable, any FID paid as an IHC are ignored. This may increase the repayment (see also CTM21220, CTM21550, CTM22060 and CTM22350).

Most IHCs will not come within the scope of this modified rule, because most do not account for ACT on any FID so no repayment of ACT is due under Schedule 13.

However, this rule covers a company that considers itself to be an IHC at one point in an accounting period but not at another.