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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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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).