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HMRC internal manual

Company Taxation Manual

CTSA: group payment arrangements: termination: Clause 19

The Board also has the power under Clause 19 to terminate an arrangement, by notice in writing to the nominated company, if:

  • any of the participating companies fails to pay tax or to file a return for any accounting period, where the payment or filing obligation arises during any group payment period,


  • the nominated company breaches its obligations under the agreement,


  • the Board believes that any of the companies covered by the arrangement may become liable to tax under ICTA88/S767A or ICTA88/767AA (anti-avoidance legislation concerned with changes in ownership of a company).

Termination of group payment arrangements by the Board under Clause 19 takes effect immediately.

  • The nominated company has the right to apportion any payments that have been made for a group payment period which is still open,


  • which for any other reason have yet to be apportioned between the participating companies.

It must do this by writing to the group payment team within 30 days of the date of the notice of termination. If it fails to do so, the Board has the power to make the necessary apportionment.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)