ACT: tax credit & FA93: rate at which ACT is payable
The rate at which ACT was payable in respect of a distribution was given by ICTA88/S14(3) which, prior to financial year 1993, linked the rate to the basic rate of IT.
FA93 changed this so that:
- for financial year 1993 the ACT rate was 9/31 (221/2/771/2),
- for subsequent financial years the ACT rate was linked to the lower rate of IT.
Where there was a change in the rate of ACT, the rate applied with effect from 6 April of the financial year concerned (ICTA88/S246 (6)(a), CTM22250).