HMRC internal manual

Company Taxation Manual

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.