MTT54230 | Administration: Payments and interest: Group payment notices - Ring-fenced entities

A group payment notice can only be issued to a ring-fenced entity if the responsible member that was originally liable is also a member of the same ring-fenced body sub-group.

A ‘ring-fenced entity’ is a body corporate which is a ring-fenced body or a member of a ring-fenced body sub-group.

A ‘ring-fenced body sub-group' is a group of entities consisting of:

• a ring-fenced body parent undertaking and its subsidiaries, or

• a ring-fenced body, which is not a subsidiary of a ring-fenced body parent undertaking, and its subsidiaries.

In this context, a ring-fenced body has the same meaning as in section 142A of the Financial Services and Markets Act 2000, and a ring-fenced body parent undertaking is a body corporate subject to rules made under section 192JA of the same Act.

This is set out in paragraph 35, schedule 14 to Finance (No.2) Act 2023.