ACT

Also known as advance corporation tax. Dresdner Kleinwort Wasserstein financial glossary

corporation tax liabilities are normally payable nine months after the end of the chargeable accounting period to which they relate. However, where a company pays a dividend ( dividends) to shareholders it is obliged to pay some corporation tax in advance of this date. The amount of ACT payable is calculated as the net dividend paid by the company multiplied by the fraction 20/80 or 25%. Having paid the ACT, the company is then allowed to deduct the ACT from its mainstream corporation tax liability, thereby reducing the amount payable after the year end. Dresdner Kleinwort Wasserstein financial glossary

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▪ I. act act ¹ [ækt] noun [countable]

1. LAW a law that has been officially accepted by the governing body of a country:

• an act to regulate the carrying on of investment business

• the Homeland Security Act of 2002

— see also Act of Congress

2. a written agreement that has legal force

consolidating act LAW

a law that combines two or more previous acts

  [m0] ▪ II. act act ² verb [intransitive]

1. act as something to do a particular job or have a particular role:

• We will act as the company's agent for the sale.

• Mortgage brokers act as middlemen between borrowers and lenders.

2. act for somebody LAW if a lawyer acts for someone, he or she represents them in a legal case:

• the lawyer acting for the insurance company

3. act on somebody's behalf COMMERCE LAW to represent someone:

• The two parties may agree a price for the land or ask an agent to act on their behalf.

4. act on something to take action as a result of something that has been said, written, suggested etc:

• Congress is eager to act on the report.

• The administration hasn't yet acted on the request.

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Ⅰ.

act UK US /ækt/ noun

► [C] something that someone does: »

A partner may be held responsible for the acts of his co-partners committed in the name of the firm.

»

He has led an investigation into stock market manipulation and various illegal acts and swindles.

→ See also ACTION(Cf. ↑action) noun

► (also Act) [C] LAW a law or formal decision made by a parliament or other group of elected law-makers: »

The 2010 act, with its requirement for a review of financial controls, has helped drive up the cost of corporate audits by as much as 50%.

● be a hard/tough act to follow — Cf. be a tough act to follow

● get in on the act — Cf. get in on the act

● get your act together — Cf. get your act together

→ See also CONSOLIDATING ACT(Cf. ↑consolidating act)

Ⅱ.

act UK US /ækt/ verb [I]

► to do something with the intention of achieving a particular result: act to do sth »

Engineers will need to act quickly to repair the damaged pipes.

act quickly/swiftly/now »

Anyone who wants a fixed-rate deal should act now.

act decisively/improperly/responsibly »

It is now time for management to act decisively.

act against/in sb's interests »

There were claims that the management was acting against shareholders' interests.

»

Members should act in the best interests of the company.

● act in good faith — Cf. act in good faith