Raise your calculators, dear readers, because today we’re taking a nostalgic trip down the memory lane of taxes. Yes, we’re diving into the world of Advance Corporation Tax (ACT) – the chummy old buddy of accountants that got canned on 6 April 1999. 🗓 Pour yourself a cup of tea (preferably chamomile for the nerves), and let’s get ACT-ive!
What Exactly Was ACT? 🤔
Once upon a fiscal year, companies had to make an advance payment of corporation tax whenever they paid out dividends (known as qualifying distributions). Think of it like paying your bill before ordering dessert, ensuring a proper dine-and-dash wouldn’t be in the cards. The company essentially took care of a portion of its tax liability ahead of the year’s main tax event.
The Diary of ACT: Birth to Obsolescence 📅
Advanced Corporation Tax saw the light of day in 1973, during an era of bell-bottoms and disco balls. Its role was akin to a reliable old uncle who insisted on being paid upfront before any talk of inheritance.
However, as companies grew bigger and started resembling mighty corporate giants, complaints about achieving
