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ACT

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See Also

ACT - Insurance company grouping | ACT and shadow ACT capacity (carry back schedule) | Adjustment of profit | FII and shadow ACT | Foreign income dividends | Marginal relief calculation | Relief claimed under TA 1988 s242


Select from the following headings:

Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors


Background

This schedule analyses franked receipts, payments and ACT for periods ending after 31 March 1992. It should be completed for ACT on dividends paid or received before 5 April 1999, after which ACT was abolished and the shadow ACT system took effect.

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Developing the schedule

One copy of this schedule may be developed from the Adjustment of profit schedule or the Marginal relief calculation schedule. The Shadow ACT schedule is automatically developed at the same time.

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Completing the schedule

Amounts paid in the period

In periods where the basic rate of tax has changed, the user enters the net dividend payments made from the beginning of the accounting period until 5 April, and then from 6 April until the accounting period end. Where there is no change in basic rate tax for the whole accounting period, the user does not need to make a distinction between amounts paid pre and post 5 April. Dividends paid after 6 April 1999 should be entered on the Shadow ACT schedule, as the period is treated as two separate periods for the purposes of accounting for ACT.

The software will automatically perform any necessary grossing up where the payments are made outside the group income election and are not foreign income dividends (FIDs) (see Foreign income dividends).

Amounts received in the period

The user enters the net dividend receipts from the beginning of the accounting period until 5 April, and then from 6 April until the accounting period end in periods where the basic rate of tax has changed. Where there is no change in basic rate tax for the whole accounting period, the user does not need to make a distinction between amounts received pre and post 5 April. Dividends received after 6 April 1999 should be entered on the Shadow ACT schedule, as the period is treated as two separate periods for the purposes of accounting for ACT.

Dividend payments from group companies received under and outside the s247 ICTA 88 group income election, must be entered separately for small companies rate calculations. In addition, FIDs and non-group franked receipts must be identified separately; the software will perform any necessary grossing up calculations to derive the total franked investment income (FII).

Where the period straddles 6 April 1999 and the shadow ACT regime coming into force, the software will automatically carry forward any surplus FII. This can no longer be used to frank a later dividend payment, although it is taken into account for dealing with surplus ACT.

ACT offset in current period

The amount derived by the software flows through to the Carry back schedule.

FII and ACT brought forward/ACT carry back

There are various data entry fields in which to enter surplus FII (at the top of the screen), ACT brought forward and excess FID income brought forward (at the foot of the screen).

ACT surrendered by group companies/ACT brought back

Any group surrenders of ACT and carry backs from the subsequent six accounting periods should be entered. Both ACT surrenders and carry backs should be entered with a leading minus.

Investment Companies

The investment company version of the schedule is identical to the trading company version.

Long periods of account

The long period of account version repeats the analysis of receipts, payments and offsets for the second accounting period.

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Standard sub-schedules

The schedule has three standard sub-schedules, which may also be developed from the A schedule:

Summary of s242 relief

Provides calculations for Relief claimed under TA 1988 s242.

Foreign Income Dividends

Allows the calculation of the maximum possible Foreign income dividends paid in the period which can be matched against distributable foreign profits.

ACT- Insurance company grouping

This is a specialist schedule. See ACT- Insurance company grouping.

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Carry forward

On carry forward, the entries for ACT and surplus FII brought forward in the later period are linked to the corresponding balances in the earlier period.

 

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Related errors

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