advance corporation tax


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Advance Corporation Tax

In the United Kingdom, a former withholding tax made on dividends. That is, corporations were required to pay the advance corporation tax on dividends before they were paid to shareholders so that the shareholders themselves were not responsible for paying any taxes. Dividends paid to pensions or some other tax-exempt investment vehicles may have had the advance corporation tax refunded later. The tax was rescinded in 1999.

advance corporation tax (ACT)

see CORPORATION TAX.
References in periodicals archive ?
This is stated after the recovery of the remaining tax losses and partial write back of advance corporation tax ('ACT') written off in previous years.
The attractiveness of buybacks was further enhanced in April 1999 following the abolition of Advance Corporation Tax (ACT).
The tax charge on profit before exceptional items fell from 32% to 24% following the savings in advance corporation tax that arise from paying the year's dividends as foreign income dividends.
The Chancellor began his career in July 1997 with a pledge not to increase taxes but promptly helped himself to pounds 5 billion a year from pension funds under the guise of a change to the littleknown Advance Corporation Tax regulations.
A January payment of 119 million pounds (US$180 million) of advance corporation tax (ACT), which is levied by the U.
Following the announcement of the planned changes in Advance Corporation Tax, the Directors' believe it would now be appropriate for the Company to have available the customary power to buy back up to 10% of the company's issued share capital.

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