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Under group payment arrangements:

• the nominated company undertakes to pay the CT liabilities of all the companies covered by the arrangement,

and

• none of the companies covered by the arrangement has to individually pay its own CT,

during the period up to the closing date. (See CTM97500 for a definition of the closing date.) CT, in this context, includes any amount assessable or chargeable as if it were corporation tax within the definition of “tax� in Paragraph 1 of Schedule 18 to FA1998, including for example liability under CTA2010/S455 (loans to participators by close companies) and ICTA88/S747 (controlled foreign companies).

»Ê¹ÚÌåÓýapp nominated company undertakes to:

• make payments of tax on the quarterly instalment payment due dates:
  • based on the most recent profits forecast of all the large companies in the arrangement (see CTM92500 onwards),
• adjust the payments made throughout the quarterly instalment period if that forecast changes:
  • increasing or reducing payments as appropriate,
• make top-up payments, where appropriate (see CTM92610),
• pay the amount due on the normal due date from all participating companies:
  • including the total liability of any non-large companies,

and

• the balance of liability of the large companies not payable by quarterly instalments during the transitional years.

»Ê¹ÚÌåÓýapp nominated company must make payments of CT under the group payment arrangement by BACS, CHAPS or bank giro credit. Changes in liability of a participating company after the closing date are its own responsibility, and do not fall within the group payment arrangement.