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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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CTSA: group payment arrangements: removal by contract

Clause 13 of the group payment arrangement contract

The nominated company must immediately remove from the arrangement a participating company which:

  • ceases to be a member of the group,


  • turns out not to have a relevant accounting period.

It should do this by writing to the group payment team.

If you receive information that a participating company needs to be removed from a group payment arrangement pass it on to the group payment team (and inform the co-ordinating officer) immediately.

If the nominated company fails to remove the company, the Board has the right to remove it.

The Board can also remove a company from the arrangement. You can use the power if you have reason to believe that it was not a member of the group (as defined at CTM97410) when it was first brought into the group payment arrangement.

It is for the technical caseworker, rather than the group payment team, to identify companies that should be removed from a group payment arrangement under these powers. The company is to be removed by notice:

  • in writing to the nominated company,
  • given at any time prior to the expiry of six months from the closing date for the group payment period.

You are most likely to discover such a case while reviewing the company’s return for the relevant accounting period.

If you identify such a case, you should liaise with the co-ordinating officer who should ask the group payment team to issue the notice of removal and make the necessary changes to the computer record.

  • In such circumstances the nominated company may apportion payments to the departing company after the notice of removal. This must be, when or before:


* making an irrevocable apportionment for an accounting period under Clause 8,

but not later than:

* the date on which the return is filed or a determination is made,


* to the extent the payments have not been repaid, or already apportioned to such company,


  • does not retain any liability in respect of the departing company for accounting periods ending after the notice of removal is given.