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HMRC internal manual

Company Taxation Manual

From
HM Revenue & Customs
Updated
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CTSA: group payment arrangements: newly acquired company: example

ZZ group has a group payment period 1 April 2010 to 31 March 2011.

  • ZZ group acquires Company A on 1 June 2010.
  • Company A previously drew up its accounts to 31 December annually.
  • Company A draws up accounts to the day before the take-over, 31 May 2010.
  • Company A then aligns its accounting date with that of the group and draws up its next accounts for the period 1 June 2010 to 31 March 2011.
  • Company A cannot participate in the group payment arrangement for its accounting period 1 January 2010 to 31 May 2010.
  • Company A can participate in the group payment arrangement, by agreement, for its accounting period 1 June 2010 to 31 March 2011, if ZZ group notifies the group payment team:
    • before 14 October 2010 (the due date for the first instalment payment due under the arrangement),
    • that it wants to bring Company A into the arrangement and the group payment team agree that it may do so.