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 The tax was rescinded in 1999.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 ?
In those days, before Advance Corporation Tax, there was a situation in the mid 50s where if you made a covenant for seven years to a certain named list of beneficiaries it counted against your income tax.
But the complexity of these new rules, together with the reform of the UK double tax relief system in 2001, the increase in National Insurance contributions with effect from April next year and the abolition of advance corporation tax, have adversely affected companies.

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