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HMRC internal manual

Company Taxation Manual

ACT collection: franked payments not made in an accounting period


A company may make a franked payment on a date that does not fall in any of its accounting periods. This will occur if, for example, a dormant company pays a dividend.

In these circumstances the company has to make a return under Schedule 13 within 14 days of the date of the payment and account for ACT accordingly. The ACT is due:

  • if the franked payment is a money payment, at the time the return is due,
  • if the franked payment is not a money payment, within 14 days of the issue of the notice of assessment (subject to any appeal).

The company cannot set off any franked investment income against such a payment for the purpose of working out the ACT payable.

The ACT paid on such a franked payment cannot be set off against any CT payable by the company since the company has no accounting period, see ICTA88/S239 (1). (But refer to Walker v Centaur Clothes Group Ltd 72TC379 in relation to carry back of ACT under ICTA88/S239 (3) generated outside an accounting period.)