Taxes Consolidation Act 1997 section 167

Change of ownership of company: calculation and treatment of advance corporation tax

Section 167 was an anti-avoidance provision that restricted the carry-forward of advance corporation tax (ACT) where a change in company ownership coincided with a major change in the nature or conduct of its trade or business.

• Applied where a change of ownership occurred within three years of a major change in the nature or conduct of the trade or business, or where ownership changed after activities had become small or negligible
• Treated the accounting period in which the change of ownership occurred as two separate accounting periods, splitting income between them
• Blocked ACT paid on distributions before the change from being carried forward and set against corporation tax on distributions made after the change
• Deleted by section 41(1)(g) of the Finance Act 2003 for accounting periods ending on or after 6 February 2003, following the abolition of the ACT system