Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Company Taxation Manual

ACT: FID: general: excess FID

ICTA88/S246F (1), (2) & (3), ICTA88/SCH13/PARA3A (3)

ACT was payable on the excess of FID paid by a company in an accounting period over FID received in the same period.

If however the FID received by a company in an accounting period exceeded the FID paid in that period, the excess was carried forward to the next accounting period. For the purposes of ICTA88/S246F the FID carried forward were treated as received in the later accounting period.

The provisions were similar to those provided for franked investment income by ICTA88/S241, and Schedule 13 applied.

If the company treated itself as an International Headquarters Company (IHC) at the time of paying an FID the rules for working out the ACT liability were modified (CTM22350). Such FID paid by an IHC were ignored for the purpose of calculating the ACT payable, but see also CTM21550. The FID paid by a company which treated itself as an IHC at the time of payment were not ignored when working out any excess of FID received to carry forward to the next accounting period.