Taxes Consolidation Act 1997 section 164

Restrictions as to payment of tax credit

Section 164 restricted the extent to which a company could obtain payment of tax credits attaching to franked investment income it received, where its own advance corporation tax (ACT) liability on distributions it made had already been reduced by the set-off mechanism in section 162.

• Applied where section 162 reduced the ACT a company would otherwise have had to pay on distributions it made in an accounting period.
• Blocked payment of tax credits on distributions received, to prevent a double benefit through both ACT reduction and a credit refund.
• The amount blocked was the aggregate of tax credits on distributions received, capped by the formula A − B.
• Deleted by section 41(1)(g) of the Finance Act 2003 with effect for accounting periods ending on or after 6 February 2003.