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Group payment arrangements

Produced by Tolley in association with
Corporation Tax
Guidance

Group payment arrangements

Produced by Tolley in association with
Corporation Tax
Guidance
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Group payment arrangements (GPAs) allow companies within the same group to make payments of corporation tax jointly. The company that makes all the payments of corporation tax on behalf of the group is called the ‘nominated company’ and effectively acts as the group ‘bank’. All other members are called ‘participating companies’.

Entering into these arrangements is optional but the advantage is that only one payment of corporation tax needs to be made on behalf of all the group members. This means that the administration is much more straightforward, particularly in the context of quarterly instalment payments of corporation tax. Such an arrangement also avoids the complications of having to deal with offsetting group members’ corporation tax overpayments against other members’ underpayments. Finally, entering into a group payment arrangement can help to minimise interest costs arising on late payment of tax, assuming the nominated company makes payments on time.

See Simon’s Taxes D1.1321 for more details.

Definition of group for group payment arrangements

The definition of a group for GPAs is wider than that

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Anton Lane
Anton Lane

Managing Partner, Edge Tax LLP , Corporate Tax, OMB, Employment Tax, International Tax, Personal Tax, IHT Trusts and Estates


I started my career helping to sort out tax problems for high net worth individuals, corporations and high profile clients under investigation for suspected serious fraud at Ernst & Young. I specialised in anti avoidance legislation targeting offshore structures and held senior positions with large offshore fiduciary service providers. I established the Edge brand over a decade ago and in 2012 focused the main business on managing tax risks, handling suspected serious fraud cases and assisting clients and advisers with disclosures to HMRC.

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