shadow advance corporation tax

Quick Reference

A system applying to any unrelieved surplus advance corporation tax (ACT) on 6 April 1999, when ACT was abolished. It preserved the right to carry forward surplus ACT but did not result in any reduction in the corporation tax liability for periods after 6 April 1999. Companies were given the choice of opting out of shadow ACT and writing off unrelieved surplus ACT at 6 April 1999.

Subjects: Accounting.

Reference entries