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HMRC internal manual

Company Taxation Manual

From
HM Revenue & Customs
Updated
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Shadow ACT: companies to which the regulations apply

SI1999/358, Reg. 2

The Regulations apply to:

  • any company that has unrelieved surplus ACT at 6 April 1999 for any accounting period beginning on or after that date other than one subsequent to its final accounting period,
  • any member of a group for an accounting period at any time in which there was another member that had unrelieved surplus ACT at 6 April 1999 other than one subsequent to its final accounting period.

The Regulations have to extend to group members without unrelieved surplus ACT to forestall groups accessing their unrelieved surplus ACT at a faster rate than expected by ensuring that any shadow ACT is generated by a different company to that holding the unrelieved surplus ACT.

A company does not have to have been a group member at 6 April 1999; indeed, it does not have to have existed at that date for the Regulations to apply to it.

Singleton companies and groups can escape the regulations by giving up their right to set unrelieved surplus ACT against their CT liabilities.