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HMRC internal manual

Company Taxation Manual

ACT collection: franked payments which are not money payments


A company may make a franked payment that is not a money payment, for example atransfer of assets at less than market value to a member. This has to be shown separatelyon the return form.

An assessment has to be raised on the company for any ACT. Subject to any appeal, the ACTis due within 14 days of the issue of the assessment.

The assessment should show the:

  • amount or value of the distribution,
  • ACT payable.

The calculation of ACT payable should not take account of the set-off of any frankedinvestment income (see (f) of AC4520). If any such set-off is due, give the relief bydischarge.

Any interest charge under TMA70/S87 will run only from 14 days after the issue of thenotice of assessment. So to protect the Revenue’s interest position in appropriate casesyou should raise an assessment at an early date.