SolvedCTM97480 | CTSA: group payment arrangements: short accounting period: example
From HM Revenue & Customs · Company Taxation Manual
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,
and
its tax liability for the accounting period 1 January to 31 August 2011,
fall within the arrangement.