A
   
   Advance Corporation Tax (ACT)
   















 

A

Advance Corporation Tax (ACT)

A tax paid by United Kingdom companies on the dividends they pay. The ACT is subject to recapture by certain shareholders. It complicates the withholding tax picture in the United Kingdom and provides a modest additional incentive for some cross-border traders in United Kingdom equity securities and indexes to use derivatives.

Glossary * A