CTM97490 - CTSA: group payment
arrangements: payment of tax
Under group payment arrangements:
- the nominated company undertakes to pay
the CT liabilities of all the companies covered by the
arrangement,
- none of the companies covered by the
arrangement has to individually pay its own CT,
during the period up to the closing date. (See
CTM97500 for a definition of the closing
date.) CT, in this context, includes any liability under
ICTA88/S419 (loans to participators by close companies) and
ICTA88/S747 (controlled foreign companies).
The nominated company undertakes to:
- make payments of tax on the quarterly
instalment payment due dates:
- based on the most recent profits forecast of all
the large companies in the arrangement (see
CTM92500 onwards),
- adjust the payments made throughout the
quarterly instalment period if that forecast changes:
- increasing or reducing payments as
appropriate,
- make top-up payments, where appropriate
(see
CTM92610),
- pay the amount due on the normal due date
from all participating companies:
- including the total liability of any non-large
companies,
- the balance of liability of the large companies
not payable by quarterly instalments during the transitional
years.
The nominated company must make payments of CT under the group
payment arrangement by BACS, CHAPS or bank giro credit. Cheque
payment is not permitted under a group payment arrangement.
Changes in liability of a participating company after the
closing date are its own responsibility, and do not fall within the
group payment arrangement.
