»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp accounting period in which the shadow ACT is exhausted and after which no amount is available to be set against the company’s liability to CT is referred to as the ‘relevant accounting periodâ€�. »Ê¹ÚÌåÓýapp ‘final accounting periodâ€� is the accounting period beginning in the period of twelve months immediately following the end of the relevant accounting period, or if there is more than one accounting period beginning in that period of twelve months, the latest of those accounting periods.

Example 1

A company’s total liability for the accounting period beginning on 1 January 2010 and ending on 31 December 2010 is £100,000 at 30%. It makes no distribution. »Ê¹ÚÌåÓýappre is no surplus shadow ACT brought forward to that period and the unexhausted unrelieved surplus ACT is £20,000. In the accounting period covering the following twelve months it has a total liability of £200,000 at 30%. It makes a distribution of £160,000. »Ê¹ÚÌåÓýapp amount of unrelieved surplus ACT that may be set-off against the liability for the accounting period ended 31.12. 2010 is calculated as follows:

• Limit for set-off £20,000.
• Less shadow ACT Nil.
• Amount of unrelieved surplus ACT that can be set against liability £20,000.
• »Ê¹ÚÌåÓýapp shadow ACT for the accounting period ended 31.12.2011 is £40,000. »Ê¹ÚÌåÓýappre is no shadow ACT to be carried back from the accounting period ended 31.12.2011.
• Limit for set-off £40,000 â€� shadow ACT £40,000.
• »Ê¹ÚÌåÓýapp accounting period ended 31.12.2011 is therefore the ‘final accounting periodâ€�.

Example 2

A company’s total liability for the accounting period beginning on 1 January 2010 and ending on 31 December 2010 is £100,000 at 30%. It makes no distribution. »Ê¹ÚÌåÓýappre is no surplus shadow ACT brought forward to that period and the unexhausted unrelieved surplus ACT is £20,000. In the accounting period ended 31.12.2011 it has a total liability of £100,000 at 30%. It makes a distribution of £160,000. »Ê¹ÚÌåÓýapp amount of unrelieved surplus ACT that may be set-off against the liability for the accounting period ended 31.12. 2010 is calculated as follows:

»Ê¹ÚÌåÓýapp shadow ACT to be carried back from the accounting period ended 31.12.2011 is:

• Limit for set-off £20,000.
• Less shadow ACT £40,000.
• Carried back £20,000.

»Ê¹ÚÌåÓýapp shadow ACT carried back to the accounting period ended 31.12.2010 displaces the unrelieved surplus ACT set against the liability for that accounting period. »Ê¹ÚÌåÓýapp accounting period ended 31.12.2010 is revealed as not being ‘the relevant accounting periodâ€� - the period in which the unrelieved surplus ACT was finally exhausted. As a result, the accounting period ended 31.12.2011 is not the final accounting period and the Regulations continue to apply.