The ACT available for set-off would normally have been the amount of ACT paid and not repaid in respect of franked payments made or FID paid in that accounting period. The following provisions might however, have affected that amount.
Where the company had made claims under Section 242 or Section
243 the ACT available for set-off in subsequent accounting periods
was reduced by the tax credit paid to the company as a result of
these claims (see
CTM16200 onwards).
Surplus ACT brought forward from previous accounting
periods
This surplus was treated as if it were ACT paid in respect of
distributions made in the accounting period under consideration (
CTM20250). ACT could not be carried
forward insofar as it related to distributions made before a change
in ownership of the company and within three years of that change
there had been a major change in the nature or conduct of its trade
or business (
CTM20300 onwards).
Surplus ACT carried back from later accounting
periods
This surplus ACT was treated as if it were ACT paid in
respect of distributions made in the accounting period under
consideration (
CTM20170 onwards). ACT could not be
carried back insofar as it related to distributions made after a
change of ownership of the company and within three years of that
change there had been a major change in the nature or conduct of
the company's trade or business (CTM20300 onwards).
If ACT is dealt with under the FID provisions it could not also be dealt with under the other provisions ( CTM21450).
A surrender of ACT could not be made unless the recipient company was a subsidiary of the surrendering company throughout the accounting period of surrender ( CTM81205). ACT surrendered could only be used by the recipient company for accounting periods during the whole of which it remained a subsidiary of the surrendering company (unless both companies remained subsidiaries of a third company ( CTM81215). ACT surrendered was not then available for set-off by the surrendering company. Surrendered ACT could not be carried forward through a change of ownership by the recipient company if there had been a change in its ownership (whether or not along with that of the surrendering company) and within three years of that change there had been a major change in the nature or conduct of the trade or business of the surrendering company ( CTM81225).
ACT paid in respect of distributions made by a company before a change in its ownership could not be set-off against liability on a chargeable gain accruing from the disposal of an asset acquired under TCGA92/S171 after that change from a company in its new group ( CTM81230).
