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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: Aggregate Levy (AL): Who is liable? Group registration

Two or more companies can apply for AL group treatment. One of the companies registers for AL on behalf of the group and all the companies in the group account for AL via this representative member.

Section 35 (3) of the Finance Act 2001, provides that:

“All the bodies corporate who are members of a group when any aggregates levy becomes due from the representative member

together with any bodies corporate who become members of the group while any such levy remains unpaid

shall be jointly and severally liable for any aggregates levy due from the representative member.“

It makes no difference that the member has since left the group.

The representative member, and therefore the group, is not liable for debts incurred by members before they joined the group. Group members remain registered under the Companies Acts as limited companies and are individually liable for debts they incurred before they joined the group.