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Advance Corporation Tax - blast from the past!

Acquired a client with ACT on their balance sheet. What do I do with it?

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I have recently acquired a client and am preparing my first set of accounts for them.  I was staggered to see ACT on the tax calculation.  I just about remember it existing when I qualified but haven't seen it on accounts for years.  Looking back through the documents available to me, I see it did genuinely occur in 1998 and has just been carried forward year after year.  Can I just write it off or is there a reason that I have to continue to carry it forward?  To begin with, I thought it was just a provision in the accounts and I was going to lose it - we're talking less than £1,000 - but then I saw it on the tax calculations each year and thought I'd better double check before writing it off.

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17th Apr 2019 17:28

Pure speculation - but I'd wager that it's been set off against a donkey's-years-ago tax liability and somebody forgot to do the journal.

I take it that this is a profitable company ?

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to lionofludesch
18th Apr 2019 13:09

Looking back, it relates to 1998. It has not been profitable for many of the past years and so has accumulated losses.

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to bendybod
18th Apr 2019 13:41

bendybod wrote:

Looking back, it relates to 1998. It has not been profitable for many of the past years and so has accumulated losses.

Ah, well, that's why the company hasn't been able to use it.

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to lionofludesch
22nd Apr 2019 12:16

So do I just keep carrying it forward until they do make enough profit to wipe out the accumulated losses?

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17th Apr 2019 23:24

of course it could just be s455 tax that hasnt been reclaimed

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to carnmores
18th Apr 2019 09:19

carnmores wrote:

of course it could just be s455 tax that hasnt been reclaimed

Good point.

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to carnmores
18th Apr 2019 13:10

No, it really is ACT!!

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