CTM97480 - CTSA: group payment arrangements: short accounting period: example
Company B participates in a group payment arrangement for the group payment period 1 January 2011 to 31 December 2011.
- Company B ceases trading on 31 August 2011, triggering the end of an accounting period.
- From 1 September 2011 to 31 December 2011 Company B becomes an investment company.
- Provided that Company B draws up its accounts to 31 December 2011, it can continue to participate in the arrangement.
If the period 1 September 2011 to 31 December 2011 is an accounting period of Company B and not a dormant or an exempt period:
- its tax liability for the period 1 September to 31 December 2011,
- its tax liability for the accounting period 1 January to 31 August 2011,
fall within the arrangement.