CTM22100 - ACT collection: franked payments which are not money payments

ICTA88/SCH13/PARA7

A company may make a franked payment that is not a money payment, for example a transfer of assets at less than market value to a member. This has to be shown separately on the return form.

An assessment has to be raised on the company for any ACT. Subject to any appeal, the ACT is due within 14 days of the issue of the assessment.

The assessment should show the:

• amount or value of the distribution,
• ACT payable.

The calculation of ACT payable should not take account of the set-off of any franked investment income (see (f) of AC4520). If any such set-off is due, give the relief by discharge.

Any interest charge under TMA70/S87 will run only from 14 days after the issue of the notice of assessment. So to protect the Revenue's interest position in appropriate cases you should raise an assessment at an early date.