LegalizeReform history
Finance (No. 2) Act 2023
10 versions
· 2023-07-11
2025-05-01
Finance (No. 2) Act 2023
2025-03-20
Finance (No. 2) Act 2023
2025-02-01
Finance (No. 2) Act 2023
2024-11-07
Finance (No. 2) Act 2023
2024-05-13
Finance (No. 2) Act 2023
2024-02-22
Finance (No. 2) Act 2023
2023-08-25
Finance (No. 2) Act 2023
2023-08-01
Finance (No. 2) Act 2023
Changes on 2023-08-01
@@ -175,7 +175,7 @@
##### 10
[Schedule 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/1/2023-07-31) makes provision in relation to the corporation tax relief contained in Chapter 6A of Part 3 of CTA 2009 (trade profits: R&D expenditure credits) and Part 13 of CTA 2009 (additional relief for expenditure on research and development)—
[Schedule 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/1/2023-08-01) makes provision in relation to the corporation tax relief contained in Chapter 6A of Part 3 of CTA 2009 (trade profits: R&D expenditure credits) and Part 13 of CTA 2009 (additional relief for expenditure on research and development)—
- (a) conferring relief in respect of expenditure on data and cloud computing services,
@@ -197,7 +197,7 @@
> - “*AR*” means, in relation to a company— in a case where corporation tax is charged at the standard small profits rate on the company’s taxable total profits of the accounting period mentioned in subsection (1) which are not ring fence profits, that rate, or in any other case, the main rate of corporation tax.
- (2) The amendments made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/11/1/2023-07-31) have effect in relation to accounting periods beginning on or after 1 April 2023.
- (2) The amendments made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/11/1/2023-08-01) have effect in relation to accounting periods beginning on or after 1 April 2023.
#### Energy (oil and gas) profits levy: de-carbonisation allowance
@@ -298,7 +298,7 @@
##### 15
- (1) Part 5A of ITA 2007 (seed enterprise investment scheme) is amended in accordance with subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/15/2/2023-07-31) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/15/5/2023-07-31).
- (1) Part 5A of ITA 2007 (seed enterprise investment scheme) is amended in accordance with subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/15/2/2023-08-01) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/15/5/2023-08-01).
- (2) In section 257AB (form and amount of SEIS relief), in subsection (2)(b), for “£100,000” substitute “£200,000”.
@@ -360,15 +360,15 @@
- (5) In paragraph 27 (requirement about share options granted in exchange), in sub-paragraph (4)(a), for “20” substitute “18”.
- (6) The amendments made by [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/16/2/2023-07-31) have effect for the purposes of determining whether a share option may be granted to an individual on or after 6 April 2023 (“*the commencement day*”).
- (7) The amendments made by subsections [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/16/3/2023-07-31) and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/16/4/2023-07-31) have effect in relation to—
- (6) The amendments made by [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/16/2/2023-08-01) have effect for the purposes of determining whether a share option may be granted to an individual on or after 6 April 2023 (“*the commencement day*”).
- (7) The amendments made by subsections [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/16/3/2023-08-01) and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/16/4/2023-08-01) have effect in relation to—
- (a) share options granted on or after the commencement day, and
- (b) shares acquired by the exercise of share options on or after the commencement day (regardless of when those share options were granted).
- (8) The amendment made by subsection [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/16/5/2023-07-31) has effect in relation to share options granted on or after the commencement day.
- (8) The amendment made by subsection [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/16/5/2023-08-01) has effect in relation to share options granted on or after the commencement day.
- (9) A CSOP scheme which was approved by, or notified to, His Majesty’s Revenue and Customs before the commencement day has effect on and after the commencement day with any modifications needed to reflect the amendments made by this section.
@@ -410,9 +410,9 @@
- (a) an employer company has granted relevant options to persons by reason of their employment with the company, and
- (b) the effect of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-07-31) would otherwise be that a relevant requirement would not be met in relation to one or more share options granted before 6 April 2023,
the employer company must, on or before the relevant day, make arrangements for determining which of the relevant options, or the extent to which those options, are to take the benefit of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-07-31) without a relevant requirement not being met in relation to any share options granted before 6 April 2023.
- (b) the effect of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-08-01) would otherwise be that a relevant requirement would not be met in relation to one or more share options granted before 6 April 2023,
the employer company must, on or before the relevant day, make arrangements for determining which of the relevant options, or the extent to which those options, are to take the benefit of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-08-01) without a relevant requirement not being met in relation to any share options granted before 6 April 2023.
- (7) The arrangements must—
@@ -420,13 +420,13 @@
- (b) be made available to persons who may be affected by the determination.
- (8) If the employer company fails to make arrangements in accordance with [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/7/2023-07-31) in a case where it is required to do so by [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/6/2023-07-31), which relevant options, or the extent to which those options, take the benefit of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-07-31) is to be determined in the chronological order in which those options were granted (and where two or more relevant options were granted at the same time, the extent to which those options take the benefit of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-07-31) is, where necessary, to be apportioned between those options).
- (8) If the employer company fails to make arrangements in accordance with [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/7/2023-08-01) in a case where it is required to do so by [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/6/2023-08-01), which relevant options, or the extent to which those options, take the benefit of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-08-01) is to be determined in the chronological order in which those options were granted (and where two or more relevant options were granted at the same time, the extent to which those options take the benefit of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-08-01) is, where necessary, to be apportioned between those options).
- (9) In this section—
- “*relevant day*” means 6 July following the end of the first tax year in which a relevant option granted by the employer company is exercised;
- “*relevant options*” has the meaning given in [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-07-31);
- “*relevant options*” has the meaning given in [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/17/5/b/2023-08-01);
- “*relevant requirement*” means any of the requirements in paragraphs 5(1), 6(2) or (4) or 7(1) of Schedule 5 to ITEPA 2003;
@@ -440,27 +440,27 @@
- (1) No lifetime allowance charge arises for the tax year 2023-24 or any subsequent tax year.
- (2) Subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/18/1/2023-07-31) does not affect the continued operation of any provision of Part 4 of FA 2004 (pension schemes etc) so far as it has effect for purposes other than that of determining a person’s liability for the lifetime allowance charge.
- (2) Subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/18/1/2023-08-01) does not affect the continued operation of any provision of Part 4 of FA 2004 (pension schemes etc) so far as it has effect for purposes other than that of determining a person’s liability for the lifetime allowance charge.
#### Certain lump sums to be taxed at marginal rate
##### 19
- (1) Subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/2/2023-07-31) applies to any relevant lump sum, or any part of a relevant lump sum, that—
- (1) Subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/2/2023-08-01) applies to any relevant lump sum, or any part of a relevant lump sum, that—
- (a) is paid under a registered pension scheme, and
- (b) would, disregarding section [18](https://www.legislation.gov.uk/ukpga/2023/30/section/18/2023-07-31), have been chargeable to income tax under sections 214 to 226 of FA 2004 (lifetime allowance charge).
- (b) would, disregarding section [18](https://www.legislation.gov.uk/ukpga/2023/30/section/18/2023-08-01), have been chargeable to income tax under sections 214 to 226 of FA 2004 (lifetime allowance charge).
- (2) Section 579A of ITEPA 2003 (pensions under registered pension schemes) applies in relation to the relevant lump sum or part of the relevant lump sum as it applies to any pension under a registered pension scheme.
- (3) Subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/4/2023-07-31) applies to any lump sum, or any part of a lump sum, that—
- (3) Subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/4/2023-08-01) applies to any lump sum, or any part of a lump sum, that—
- (a) is paid under a relieved non-UK pension scheme,
- (b) would have been a relevant lump sum within subsection [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/a/2023-07-31), [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/c/2023-07-31) or [(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/d/2023-07-31) if it had been paid under a registered pension scheme, and
- (c) would, disregarding section [18](https://www.legislation.gov.uk/ukpga/2023/30/section/18/2023-07-31), have been chargeable to income tax under sections 214 to 226 of FA 2004 (as applied by paragraphs 13 to 19 of Schedule 34 to FA 2004 (application of lifetime allowance charge to non-UK schemes)).
- (b) would have been a relevant lump sum within subsection [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/a/2023-08-01), [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/c/2023-08-01) or [(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/d/2023-08-01) if it had been paid under a registered pension scheme, and
- (c) would, disregarding section [18](https://www.legislation.gov.uk/ukpga/2023/30/section/18/2023-08-01), have been chargeable to income tax under sections 214 to 226 of FA 2004 (as applied by paragraphs 13 to 19 of Schedule 34 to FA 2004 (application of lifetime allowance charge to non-UK schemes)).
- (4) Section 573 of ITEPA 2003 (foreign pensions) applies in relation to the lump sum or part of the lump sum as it applies to any pension paid by or on behalf of a person who is outside the United Kingdom to a person who is resident in the United Kingdom.
@@ -474,7 +474,7 @@
- (d) an uncrystallised funds lump sum death benefit;
- (6) Expressions used in subsection [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/2023-07-31) have the same meaning as in Part 4 of FA 2004 (see Schedule 29 to that Act).
- (6) Expressions used in subsection [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/19/5/2023-08-01) have the same meaning as in Part 4 of FA 2004 (see Schedule 29 to that Act).
- (7) In this section—
@@ -534,7 +534,7 @@
##### 23
- (1) In Part 4 of FA 2004 (pension schemes etc), Schedule 36 (transitional provisions) is amended in accordance with subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/23/2/2023-07-31) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/23/3/2023-07-31).
- (1) In Part 4 of FA 2004 (pension schemes etc), Schedule 36 (transitional provisions) is amended in accordance with subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/23/2/2023-08-01) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/23/3/2023-08-01).
- (2) In paragraph 12 (enhanced protection), in sub-paragraph (2), after “ceases to apply if” insert “the notice under sub-paragraph (1) is given on or after 15 March 2023 and”.
@@ -567,7 +567,7 @@
##### 24
- (1) Part 4 of FA 2004 (pension schemes) is amended in accordance with [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/24/2/2023-07-31) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/24/8/2023-07-31).
- (1) Part 4 of FA 2004 (pension schemes) is amended in accordance with [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/24/2/2023-08-01) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/24/8/2023-08-01).
- (2) In section 152 (meaning of arrangement), in subsection (5A)—
@@ -615,13 +615,13 @@
> (1) This paragraph applies for the purposes of benefit crystallisation event 1 where the sums or assets designated are, after the designation, held for the purposes of a CMP-derived drawdown pension.
> (2) The amount crystallised by the event is to be reduced by the amount (or an appropriate proportion of the amount) crystallised on the individual becoming entitled to a scheme pension under the collective money purchase arrangement for the purposes of which the sums or assets were previously held.
- (9) In consequence of the amendments made by the preceding provisions of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/24/2023-07-31), the following provisions of Schedule 5 to FA 2021 are omitted—
- (9) In consequence of the amendments made by the preceding provisions of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/24/2023-08-01), the following provisions of Schedule 5 to FA 2021 are omitted—
- (a) paragraph 21(2)(b);
- (b) paragraph 22(2).
- (10) The Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006 ([S.I. 2006/499](https://www.legislation.gov.uk/uksi/2006/499)) are amended in accordance with subsections [(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/24/11/2023-07-31) and [(12)](https://www.legislation.gov.uk/ukpga/2023/30/section/24/12/2023-07-31).
- (10) The Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006 ([S.I. 2006/499](https://www.legislation.gov.uk/uksi/2006/499)) are amended in accordance with subsections [(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/24/11/2023-08-01) and [(12)](https://www.legislation.gov.uk/ukpga/2023/30/section/24/12/2023-08-01).
- (11) In regulation 3 (scheme pension payable by registered pension scheme - recognised transfers), at the end insert—
@@ -708,7 +708,7 @@
- (5) In section 655 of ITEPA 2003 (structure of Part 10), in subsection (2), at the end insert
> ;
> - [section 27](https://www.legislation.gov.uk/ukpga/2023/30/section/27/2023-07-31) of F(No. 2)A 2023 (power to clarify tax treatment of devolved social security benefits).
> - [section 27](https://www.legislation.gov.uk/ukpga/2023/30/section/27/2023-08-01) of F(No. 2)A 2023 (power to clarify tax treatment of devolved social security benefits).
### Foster carers etc
@@ -766,7 +766,7 @@
##### 29
[Schedule 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/2023-07-31) contains amendments relating to estates in administration and trusts.
[Schedule 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/2023-08-01) contains amendments relating to estates in administration and trusts.
### Provisions relating to insurance
@@ -793,11 +793,11 @@
> (8) For the purposes of this section “*arrangements*” includes any agreement, scheme, transaction or understanding (whether or not legally enforceable).
> (9) Section 1122 of CTA 2010 (connected persons) has effect for the purposes of this section.
- (2) The amendment made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/30/2023-07-31) is treated as having come into force on 15 December 2022 and applies to the re-insurance of basic life assurance and general annuity business whenever the arrangements for that re-insurance were made.
- (3) Where, on or after 15 December 2022, a re-insurer adopts IFRS 17 in relation to one or more accounting periods that commence before that date, the amendment made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/30/2023-07-31) has effect, in relation to that re-insurer, for those accounting periods.
- (4) In [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/30/3/2023-07-31) “*IFRS 17*” means International Financial Reporting Standard 17 (insurance contracts) issued by the International Accounting Standards Board.
- (2) The amendment made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/30/2023-08-01) is treated as having come into force on 15 December 2022 and applies to the re-insurance of basic life assurance and general annuity business whenever the arrangements for that re-insurance were made.
- (3) Where, on or after 15 December 2022, a re-insurer adopts IFRS 17 in relation to one or more accounting periods that commence before that date, the amendment made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/30/2023-08-01) has effect, in relation to that re-insurer, for those accounting periods.
- (4) In [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/30/3/2023-08-01) “*IFRS 17*” means International Financial Reporting Standard 17 (insurance contracts) issued by the International Accounting Standards Board.
#### Certain re-insurance sums not to count as deemed I-E receipts
@@ -877,13 +877,13 @@
##### 34
[Schedule 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/2023-07-31) makes provision about corporate interest restriction and the tax treatment of financing costs and income.
[Schedule 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/2023-08-01) makes provision about corporate interest restriction and the tax treatment of financing costs and income.
#### Investment vehicles
##### 35
[Schedule 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/2023-07-31) makes amendments to—
[Schedule 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/2023-08-01) makes amendments to—
- (a) Schedule 5AAA to TCGA 1992 (UK property rich collective investment vehicles etc),
@@ -897,7 +897,7 @@
##### 36
- (1) TCGA 1992 is amended in accordance with [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/2/2023-07-31) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/3/2023-07-31).
- (1) TCGA 1992 is amended in accordance with [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/2/2023-08-01) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/3/2023-08-01).
- (2) After section 138 (exchange of securities and schemes of reconstruction: procedure for clearance in advance) insert—
@@ -965,7 +965,7 @@
- (3) In section 288 (interpretation), in the definition of “close company”, at the end insert “(subject to [section 138ZA](#p03673)[(6)](#p03757))”.
- (4) The amendments made by [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/2/2023-07-31) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/3/2023-07-31) have effect in relation to an issue of shares or debentures made on or after 17 November 2022.
- (4) The amendments made by [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/2/2023-08-01) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/3/2023-08-01) have effect in relation to an issue of shares or debentures made on or after 17 November 2022.
- (5) In section 830 of ITTOIA 2005 (meaning of “*relevant foreign income*”), after subsection (3) insert—
@@ -973,27 +973,27 @@
> (a) the security is treated, for the purposes of that Act, as situated in the United Kingdom as a result of section [138ZB](#p03779) of that Act, and
> (b) that section applies in respect of the security as a result of an issue of shares in or debentures of a company in exchange for, or in respect of, shares in or debentures of another company that is incorporated, and is resident, in the United Kingdom.
- (6) The amendment made by [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/5/2023-07-31) is treated as having come into force on 17 November 2022.
- (6) The amendment made by [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/36/5/2023-08-01) is treated as having come into force on 17 November 2022.
#### Records relating to transfer pricing
##### 37
[Schedule 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/5/2023-07-31) makes provision about the keeping of records for the purposes of Part 4 of TIOPA 2010.
[Schedule 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/5/2023-08-01) makes provision about the keeping of records for the purposes of Part 4 of TIOPA 2010.
#### Double taxation relief: foreign nominal rates
##### 38
- (1) No extended time limit claim may be made on or after 20 July 2022 for a credit calculated by reference to a foreign nominal rate of tax unless [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/38/2/2023-07-31) or [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/38/3/2023-07-31) applies in relation to the claim.
- (2) [This subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/38/2/2023-07-31) applies in relation to an extended time limit claim if the adjustment in the amount of tax payable that gives rise to the claim—
- (1) No extended time limit claim may be made on or after 20 July 2022 for a credit calculated by reference to a foreign nominal rate of tax unless [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/38/2/2023-08-01) or [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/38/3/2023-08-01) applies in relation to the claim.
- (2) [This subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/38/2/2023-08-01) applies in relation to an extended time limit claim if the adjustment in the amount of tax payable that gives rise to the claim—
- (a) is not calculated by reference to a foreign nominal rate of tax, and
- (b) occurred on or after 21 July 2016 but before 20 July 2022.
- (3) [This subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/38/3/2023-07-31) applies in relation to an extended time limit claim if the claim relates to an accounting period that ended before 20 July 2022 (“*the relevant accounting period*”) and as at that date—
- (3) [This subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/38/3/2023-08-01) applies in relation to an extended time limit claim if the claim relates to an accounting period that ended before 20 July 2022 (“*the relevant accounting period*”) and as at that date—
- (a) an appeal under section 31 of TMA 1970 against an assessment to tax in relation to the relevant accounting period has been brought but has not been finally determined or withdrawn,
@@ -1085,7 +1085,7 @@
> (b) in the case of corporation tax, the period of 12 months from the end of the chargeable period.
> (4) Where a claim, election, application or notice is made, given, revoked or varied by virtue of this section, all such adjustments shall be made, whether by way of discharge or repayment of tax or the making of amendments, assessments or otherwise, as are required to take account of the effect of the taking of that action on any person’s liability to tax for any chargeable period.
- (2) The amendment made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/40/1/2023-07-31) has effect—
- (2) The amendment made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/40/1/2023-08-01) has effect—
- (a) for the purposes of corporation tax, in relation to any disposal and acquisition of an asset under a contract that is entered into on or after 1 April 2023, and
@@ -1095,7 +1095,7 @@
##### 41
- (1) TCGA 1992 is amended in accordance with [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/41/2/2023-07-31) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/41/5/2023-07-31).
- (1) TCGA 1992 is amended in accordance with [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/41/2/2023-08-01) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/41/5/2023-08-01).
- (2) In Part 3 (individuals, partnerships, trusts and collective investment schemes), in Chapter 1 (miscellaneous provisions), in section 58 (spouses and civil partnerships), for subsection (1) substitute—
@@ -1137,7 +1137,7 @@
- (5) In Part 8 (supplemental), in section 288 (interpretation), in subsection (3), after “partner” insert “(however expressed)”.
- (6) The amendments made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/41/2023-07-31) apply in relation to disposals made on or after 6 April 2023.
- (6) The amendments made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/41/2023-08-01) apply in relation to disposals made on or after 6 April 2023.
#### Carried interest: election to pay tax as scheme profits arise
@@ -1242,7 +1242,7 @@
> (9) This section applies in relation to cases where, immediately before the disposal, the land is held by a partnership comprising the landowner and the co-owner or co-owners (whether the partnership is formed in Scotland or elsewhere) as it applies in relation to other cases (and the partners are regarded as the landowner and the co-owner or co-owners for the purposes of this section).
- (3) The amendments made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/43/2023-07-31) have effect in relation to disposals made on or after 6 April 2023.
- (3) The amendments made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/43/2023-08-01) have effect in relation to disposals made on or after 6 April 2023.
## Part 2 — Alcohol Duty
@@ -1254,7 +1254,7 @@
##### 44
- (1) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31), “*alcoholic product*” means any of the following—
- (1) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01), “*alcoholic product*” means any of the following—
- (a) spirits,
@@ -1266,9 +1266,9 @@
- (e) any other fermented product.
- (2) But a product listed in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/44/1/2023-07-31) is not an alcoholic product if it is of an alcoholic strength of 1.2% or less.
- (3) [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-07-31) defines each category of alcoholic product (and makes further provision in connection with the definitions).
- (2) But a product listed in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/44/1/2023-08-01) is not an alcoholic product if it is of an alcoholic strength of 1.2% or less.
- (3) [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-08-01) defines each category of alcoholic product (and makes further provision in connection with the definitions).
#### Alcoholic strength
@@ -1282,11 +1282,11 @@
- (2) The alcoholic strength of any alcoholic product is to be determined by reference to the product as at 20°C.
- (3) The Commissioners may by regulations make provision about the means of ascertaining the alcoholic strength, weight or volume of any alcoholic product or other substance (including products or substances that are not in liquid form at 20°C) for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31).
- (4) Regulations under [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/45/3/2023-07-31) may, in particular, include provision for ascertaining the alcoholic strength, weight or volume of anything contained in a bottle or container by reference to information given on the bottle or container or in documents relating to it.
- (5) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31), “*alcohol*” means ethanol.
- (3) The Commissioners may by regulations make provision about the means of ascertaining the alcoholic strength, weight or volume of any alcoholic product or other substance (including products or substances that are not in liquid form at 20°C) for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01).
- (4) Regulations under [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/45/3/2023-08-01) may, in particular, include provision for ascertaining the alcoholic strength, weight or volume of anything contained in a bottle or container by reference to information given on the bottle or container or in documents relating to it.
- (5) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01), “*alcohol*” means ethanol.
#### Categories of alcoholic products: regulations
@@ -1294,9 +1294,9 @@
The Treasury may by regulations—
- (a) amend [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-07-31);
- (b) provide that a beverage of an alcoholic strength exceeding 1.2%, of a description specified by or under the regulations, is to be treated as being an alcoholic product of a particular category listed in [section 44](https://www.legislation.gov.uk/ukpga/2023/30/section/44/2023-07-31) (whether or not it would otherwise fall within another category listed in that section).
- (a) amend [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-08-01);
- (b) provide that a beverage of an alcoholic strength exceeding 1.2%, of a description specified by or under the regulations, is to be treated as being an alcoholic product of a particular category listed in [section 44](https://www.legislation.gov.uk/ukpga/2023/30/section/44/2023-08-01) (whether or not it would otherwise fall within another category listed in that section).
### Charge and rates
@@ -1306,19 +1306,19 @@
- (1) An excise duty (“alcohol duty”) is charged on alcoholic products that are produced in, or imported into, the United Kingdom.
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/47/1/2023-07-31) is subject to the exemptions in [Chapters 4](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/4/2023-07-31) and [6](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/6/2023-07-31).
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/47/1/2023-08-01) is subject to the exemptions in [Chapters 4](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/4/2023-08-01) and [6](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/6/2023-08-01).
#### Rates
##### 48
- (1) Alcohol duty is charged at the rates shown in [Schedule 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/7/2023-07-31).
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/48/1/2023-07-31) is subject to—
- (a) [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-07-31) (draught relief), and
- (b) [section 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2023-07-31) (small producer relief).
- (1) Alcohol duty is charged at the rates shown in [Schedule 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/7/2023-08-01).
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/48/1/2023-08-01) is subject to—
- (a) [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-08-01) (draught relief), and
- (b) [section 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2023-08-01) (small producer relief).
#### Excise duty point and payment
@@ -1326,11 +1326,11 @@
- (1) Alcohol duty is to be paid, and the amount chargeable is to be determined and become due, in accordance with provision made by or under—
- (a) [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-07-31);
- (a) [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-08-01);
- (b) section 1 of F(No. 2)A 1992.
- (2) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31), “*excise duty point*” has the meaning given by section 1 of F(No. 2)A 1992.
- (2) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01), “*excise duty point*” has the meaning given by section 1 of F(No. 2)A 1992.
### Chapter 2 — Draught relief
@@ -1338,9 +1338,9 @@
##### 50
- (1) Alcohol duty is charged on qualifying draught products at the reduced rates shown in [Schedule 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/8/2023-07-31) (instead of at the rates shown in [Schedule 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/7/2023-07-31) (the “full rates”)).
- (2) But a person liable to pay alcohol duty on qualifying draught products may, for the purposes of [section 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2/2023-07-31), elect for duty to be charged at the full rates.
- (1) Alcohol duty is charged on qualifying draught products at the reduced rates shown in [Schedule 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/8/2023-08-01) (instead of at the rates shown in [Schedule 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/7/2023-08-01) (the “full rates”)).
- (2) But a person liable to pay alcohol duty on qualifying draught products may, for the purposes of [section 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2/2023-08-01), elect for duty to be charged at the full rates.
#### Alcoholic products qualifying for draught relief
@@ -1352,7 +1352,7 @@
- (b) at the excise duty point are contained in, or are being transported to a place in the United Kingdom for the purpose of being transferred to, a large draught container.
- (2) But alcoholic products that are produced in the United Kingdom by a person otherwise than in accordance with an approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) are not qualifying draught products.
- (2) But alcoholic products that are produced in the United Kingdom by a person otherwise than in accordance with an approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) are not qualifying draught products.
- (3) A “*large draught container*” means a container which—
@@ -1360,7 +1360,7 @@
- (b) incorporates, or is designed to connect to, a qualifying system for dispensing individual drinks.
- (4) For the purposes of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/3/b/2023-07-31), “*qualifying system*” means—
- (4) For the purposes of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/3/b/2023-08-01), “*qualifying system*” means—
- (a) a pressurised gas delivery system, or
@@ -1368,15 +1368,15 @@
- (5) The Commissioners may by regulations—
- (a) amend [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/3/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/3/a/2023-07-31) so as to specify a different capacity;
- (b) amend [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/4/2023-07-31) so as to add or remove, or to vary the description of, a qualifying system.
- (a) amend [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/3/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/3/a/2023-08-01) so as to specify a different capacity;
- (b) amend [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/4/2023-08-01) so as to add or remove, or to vary the description of, a qualifying system.
#### Repackaging qualifying draught products
##### 52
- (1) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-07-31), qualifying draught products are “repackaged” if—
- (1) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-08-01), qualifying draught products are “repackaged” if—
- (a) they are transferred to containers that are not large draught containers, but
@@ -1386,37 +1386,37 @@
- (a) the repackaging is authorised, or
- (b) alcohol duty was charged on the products at the full rates, in accordance with an election under [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2/2023-07-31).
- (b) alcohol duty was charged on the products at the full rates, in accordance with an election under [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2/2023-08-01).
- (3) Repackaging is “authorised” if it is carried out by a person who is—
- (a) approved and registered under section 100G of CEMA 1979 by virtue of regulation 3 of the Warehousekeepers and Owners of Warehoused Goods Regulations 1999 ([S.I. 1999/1278](https://www.legislation.gov.uk/uksi/1999/1278)), or
- (b) approved under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) (producers of alcoholic products).
- (4) Where the repackaging of qualifying draught products is authorised, an amount equal to the duty shortfall is treated, for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31), as an amount of alcohol duty charged on the repackaged products.
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-07-31) and in [section 53](https://www.legislation.gov.uk/ukpga/2023/30/section/53/2023-07-31), the “*duty shortfall*” in relation to repackaged qualifying draught products is the difference between—
- (a) the alcohol duty payable on the alcoholic products under [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/50/1/2023-07-31) (draught products: reduced rates), and
- (b) the alcohol duty that would have been payable on the alcoholic products under [section 48](https://www.legislation.gov.uk/ukpga/2023/30/section/48/2023-07-31) (rates) if they had not, at the excise duty point, been qualifying draught products.
- (6) For the purposes of subsection (2), the Commissioners may by regulations require a person to provide, on the supply to another person of qualifying draught products in respect of which an election under [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2/2023-07-31) has been made, information or documents, of a description specified by or under the regulations, as evidence that duty has been charged at the full rates.
- (b) approved under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) (producers of alcoholic products).
- (4) Where the repackaging of qualifying draught products is authorised, an amount equal to the duty shortfall is treated, for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01), as an amount of alcohol duty charged on the repackaged products.
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-08-01) and in [section 53](https://www.legislation.gov.uk/ukpga/2023/30/section/53/2023-08-01), the “*duty shortfall*” in relation to repackaged qualifying draught products is the difference between—
- (a) the alcohol duty payable on the alcoholic products under [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/50/1/2023-08-01) (draught products: reduced rates), and
- (b) the alcohol duty that would have been payable on the alcoholic products under [section 48](https://www.legislation.gov.uk/ukpga/2023/30/section/48/2023-08-01) (rates) if they had not, at the excise duty point, been qualifying draught products.
- (6) For the purposes of subsection (2), the Commissioners may by regulations require a person to provide, on the supply to another person of qualifying draught products in respect of which an election under [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2/2023-08-01) has been made, information or documents, of a description specified by or under the regulations, as evidence that duty has been charged at the full rates.
#### Repackaging in contravention of section 52 (2)
##### 53
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/53/2023-07-31) applies if a person repackages qualifying draught products in contravention of [section 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2/2023-07-31).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/53/2023-08-01) applies if a person repackages qualifying draught products in contravention of [section 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2/2023-08-01).
- (2) The Commissioners may—
- (a) assess as alcohol duty due from the person mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/53/1/2023-07-31) an amount equal to the duty shortfall, and
- (b) notify that person or that person’s representative of any assessment under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/53/2/a/2023-07-31).
- (3) The conduct mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/53/1/2023-07-31) attracts a penalty under section 9 of FA 1994, calculated by reference to the amount of duty referred to in [section 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/52/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/52/5/b/2023-07-31).
- (a) assess as alcohol duty due from the person mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/53/1/2023-08-01) an amount equal to the duty shortfall, and
- (b) notify that person or that person’s representative of any assessment under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/53/2/a/2023-08-01).
- (3) The conduct mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/53/1/2023-08-01) attracts a penalty under section 9 of FA 1994, calculated by reference to the amount of duty referred to in [section 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/52/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/52/5/b/2023-08-01).
- (4) Any alcoholic products, articles (including packaging or equipment) or substances in the person's possession, used (or which may be used) for or in connection with the repackaging, are liable to forfeiture.
@@ -1434,13 +1434,13 @@
- (a) the standard rate, less
- (b) the duty discount for those products (determined in accordance with [section 59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-07-31) and [Schedule 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/2023-07-31)).
- (3) In [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2/a/2023-07-31), the “*standard rate*”, in relation to alcoholic products, means—
- (a) the rate shown for products of that kind in [Schedule 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/7/2023-07-31), or
- (b) if [Schedule 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/8/2023-07-31) applies (and no election has been made under [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2/2023-07-31)) in relation to the products) the rate shown for products of that kind in that Schedule.
- (b) the duty discount for those products (determined in accordance with [section 59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-08-01) and [Schedule 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/2023-08-01)).
- (3) In [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2/a/2023-08-01), the “*standard rate*”, in relation to alcoholic products, means—
- (a) the rate shown for products of that kind in [Schedule 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/7/2023-08-01), or
- (b) if [Schedule 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/8/2023-08-01) applies (and no election has been made under [section 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/50/2/2023-08-01)) in relation to the products) the rate shown for products of that kind in that Schedule.
- (4) For the purposes of this Chapter—
@@ -1462,7 +1462,7 @@
- (d) meet such other conditions (if any) as are specified by regulations made by the Commissioners.
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/55/1/2023-07-31) is subject to [section 58](https://www.legislation.gov.uk/ukpga/2023/30/section/58/2023-07-31) (exclusions).
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/55/1/2023-08-01) is subject to [section 58](https://www.legislation.gov.uk/ukpga/2023/30/section/58/2023-08-01) (exclusions).
#### Small production premises
@@ -1490,9 +1490,9 @@
- (5) The “unlicensed product condition” is met—
- (a) in relation to non-group premises if the condition in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/56/6/2023-07-31) is met in relation to those premises;
- (b) in relation to group premises if the condition in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/56/6/2023-07-31) is met in relation to every set of premises in the production group.
- (a) in relation to non-group premises if the condition in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/56/6/2023-08-01) is met in relation to those premises;
- (b) in relation to group premises if the condition in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/56/6/2023-08-01) is met in relation to every set of premises in the production group.
- (6) The condition is that—
@@ -1510,21 +1510,21 @@
- (b) the “estimated alcohol production amount” for a production year is the producer’s reasonable estimate of the alcohol production amount for those premises in that year.
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/2023-07-31) is subject to [subsections (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/3/2023-07-31) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/6/2023-07-31).
- (3) The reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/2023-07-31) to the alcoholic products produced on a set of premises does not include a reference to any alcoholic products that are—
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/2023-08-01) is subject to [subsections (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/3/2023-08-01) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/6/2023-08-01).
- (3) The reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/2023-08-01) to the alcoholic products produced on a set of premises does not include a reference to any alcoholic products that are—
- (a) spoilt or destroyed before the excise duty point, or
- (b) produced in the course of producing a different alcoholic product on those premises or on any set of connected premises.
- (4) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/5/2023-07-31) applies where premises are in use for the purposes of the production of alcoholic products for part only (the “relevant part”) of a production year (including where premises begin to be used for those purposes part-way through a production year).
- (5) The alcohol production amount or (as the case may be) the estimated alcohol production amount is treated, for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31), as being the amount given by—
- (4) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/5/2023-08-01) applies where premises are in use for the purposes of the production of alcoholic products for part only (the “relevant part”) of a production year (including where premises begin to be used for those purposes part-way through a production year).
- (5) The alcohol production amount or (as the case may be) the estimated alcohol production amount is treated, for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01), as being the amount given by—
- (a) dividing the actual alcohol production amount, or (as the case may be) the estimate of that amount, by the number of days in the relevant part of the production year, and
- (b) multiplying the amount given by [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/5/a/2023-07-31) by the number of days in the production year.
- (b) multiplying the amount given by [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/5/a/2023-08-01) by the number of days in the production year.
- (6) The Commissioners may, if satisfied that the circumstances are exceptional, agree with a producer that certain alcoholic products, or a certain quantity of alcoholic products, may be disregarded for the purposes of determining—
@@ -1540,17 +1540,17 @@
Alcoholic products produced on any premises are not “small producer alcoholic products” if—
- (a) they are exempt from duty under any of [sections 72](https://www.legislation.gov.uk/ukpga/2023/30/section/72/2023-07-31), [76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-07-31) or [77](https://www.legislation.gov.uk/ukpga/2023/30/section/77/2023-07-31),
- (b) they are produced in the United Kingdom by a person otherwise than in accordance with an approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31),
- (a) they are exempt from duty under any of [sections 72](https://www.legislation.gov.uk/ukpga/2023/30/section/72/2023-08-01), [76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-08-01) or [77](https://www.legislation.gov.uk/ukpga/2023/30/section/77/2023-08-01),
- (b) they are produced in the United Kingdom by a person otherwise than in accordance with an approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01),
- (c) at the time they are produced, the alcohol production amount attributable to the premises (in the case of non-group premises) or the production group (in the case of group premises) for the current year has exceeded the small production limit, or
- (d) they are produced—
- (i) in the case of non-group premises, before the producer has estimated (for the purposes of [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-07-31)) the alcohol production amount attributable to the premises for the current year, or
- (ii) in the case of group premises, before the producer in relation to those premises or any connected premises has estimated (for the purposes of [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-07-31)) the alcohol production amount attributable to those premises or any connected premises for that year.
- (i) in the case of non-group premises, before the producer has estimated (for the purposes of [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-08-01)) the alcohol production amount attributable to the premises for the current year, or
- (ii) in the case of group premises, before the producer in relation to those premises or any connected premises has estimated (for the purposes of [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-08-01)) the alcohol production amount attributable to those premises or any connected premises for that year.
#### Duty discount for small producer alcoholic products
@@ -1582,15 +1582,15 @@
- (6) The start and end thresholds, cumulative discount and marginal discount for a discount band are the figures shown—
- (a) in relation to alcoholic products (other than qualifying draught products referred to in paragraph (b)) of a particular description, in the tables in Part 1 of [Schedule 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/2023-07-31), and
- (b) in relation to qualifying draught products (in respect of which no election has been made under section 50(2)) of a particular description, in the tables in Part 2 of [Schedule 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/2023-07-31).
- (a) in relation to alcoholic products (other than qualifying draught products referred to in paragraph (b)) of a particular description, in the tables in Part 1 of [Schedule 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/2023-08-01), and
- (b) in relation to qualifying draught products (in respect of which no election has been made under section 50(2)) of a particular description, in the tables in Part 2 of [Schedule 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/2023-08-01).
#### Assessments where incorrectly low rate of alcohol duty applied
##### 60
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-07-31) applies if—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-08-01) applies if—
- (a) alcohol duty is charged on alcoholic products,
@@ -1598,7 +1598,7 @@
- (c) it turns out that the alcoholic products were not small producer alcoholic products (including where circumstances were not as they appeared at the excise duty point or where circumstances subsequently changed).
- (2) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-07-31) also applies if—
- (2) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-08-01) also applies if—
- (a) alcohol duty is charged on small producer alcoholic products, and
@@ -1608,15 +1608,15 @@
- (a) may assess as being alcohol duty due from the liable person an amount equal to the duty shortfall, and
- (b) must notify that person or that person’s representative of any assessment under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/60/3/a/2023-07-31).
- (4) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-07-31) “*duty shortfall*” means the difference between—
- (b) must notify that person or that person’s representative of any assessment under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/60/3/a/2023-08-01).
- (4) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-08-01) “*duty shortfall*” means the difference between—
- (a) the actual amount of alcohol duty chargeable on the alcoholic products, and
- (b) the lower amount that, at the excise duty point, appeared to be the amount chargeable.
- (5) The reference in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/60/3/2023-07-31) to the “*liable person*” is a reference to the person liable to pay the alcohol duty on the alcoholic products.
- (5) The reference in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/60/3/2023-08-01) to the “*liable person*” is a reference to the person liable to pay the alcohol duty on the alcoholic products.
### Mergers and demergers
@@ -1624,7 +1624,7 @@
##### 61
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31) and [sections 62](https://www.legislation.gov.uk/ukpga/2023/30/section/62/2023-07-31) to [67](https://www.legislation.gov.uk/ukpga/2023/30/section/67/2023-07-31) apply where a small producer (“SP1”) becomes connected with another small producer (“SP2”).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01) and [sections 62](https://www.legislation.gov.uk/ukpga/2023/30/section/62/2023-08-01) to [67](https://www.legislation.gov.uk/ukpga/2023/30/section/67/2023-08-01) apply where a small producer (“SP1”) becomes connected with another small producer (“SP2”).
- (2) “*Post-merger production group*” means the production group that consists of—
@@ -1632,7 +1632,7 @@
- (b) every set of connected premises,
and references to “post-merger production group premises” are to premises within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2/b/2023-07-31).
and references to “post-merger production group premises” are to premises within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2/b/2023-08-01).
- (3) In relation to the post-merger production group—
@@ -1646,21 +1646,21 @@
- (4) Each of Year 1, Year 2 and Year 3 is a “*merger transition year*” in relation to the post-merger production group, unless any of the following apply—
- (a) [section 65](https://www.legislation.gov.uk/ukpga/2023/30/section/65/2023-07-31) (early termination of merger transition period),
- (b) [section 66](https://www.legislation.gov.uk/ukpga/2023/30/section/66/2023-07-31) (subsequent mergers), or
- (c) [section 68](https://www.legislation.gov.uk/ukpga/2023/30/section/68/2023-07-31)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/68/8/2023-07-31) (demergers in a merger transition year).
- (a) [section 65](https://www.legislation.gov.uk/ukpga/2023/30/section/65/2023-08-01) (early termination of merger transition period),
- (b) [section 66](https://www.legislation.gov.uk/ukpga/2023/30/section/66/2023-08-01) (subsequent mergers), or
- (c) [section 68](https://www.legislation.gov.uk/ukpga/2023/30/section/68/2023-08-01)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/68/8/2023-08-01) (demergers in a merger transition year).
#### Modified “small production premises” test
##### 62
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/62/2023-07-31) (instead of [section 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-07-31)) applies in relation to a post-merger production group in a merger transition year.
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/62/2023-08-01) (instead of [section 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-08-01)) applies in relation to a post-merger production group in a merger transition year.
- (2) Post-merger production group premises are “small production premises” in the current year in relation to alcoholic products if—
- (a) the adjusted post-merger amount, determined in accordance with [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-07-31) does not exceed the small production limit (within the meaning of [section 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/56/4/2023-07-31)), and
- (a) the adjusted post-merger amount, determined in accordance with [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-08-01) does not exceed the small production limit (within the meaning of [section 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/56/4/2023-08-01)), and
- (b) in relation to each set of post-merger production group premises, less than half of the alcohol production amount (if any), in relation to those premises, for the previous year was contained in alcoholic products produced under licence.
@@ -1668,21 +1668,21 @@
##### 63
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/63/2023-07-31) applies in relation to alcoholic products that are produced—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/63/2023-08-01) applies in relation to alcoholic products that are produced—
- (a) on post-merger production group premises, and
- (b) in a merger transition year.
- (2) For the purposes of [section 59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-07-31), references to the “*relevant production amount*” are references to the adjusted post-merger amount (and subsections (3) and (4) of that section do not apply).
- (3) [Section 58](https://www.legislation.gov.uk/ukpga/2023/30/section/58/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/58/c/2023-07-31) does not apply for the purposes of the application of [section 55](https://www.legislation.gov.uk/ukpga/2023/30/section/55/2023-07-31) or [59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-07-31) in a merger transition year.
- (2) For the purposes of [section 59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-08-01), references to the “*relevant production amount*” are references to the adjusted post-merger amount (and subsections (3) and (4) of that section do not apply).
- (3) [Section 58](https://www.legislation.gov.uk/ukpga/2023/30/section/58/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/58/c/2023-08-01) does not apply for the purposes of the application of [section 55](https://www.legislation.gov.uk/ukpga/2023/30/section/55/2023-08-01) or [59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-08-01) in a merger transition year.
#### Adjusted post-merger amount
##### 64
- (1) In Year 1, the adjusted post-merger amount is the alcohol production amount in relation to the larger producer’s premises for the pre-merger year, determined in accordance with [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-07-31) (and the alcohol production amount attributable to the smaller producer for the pre-merger year is disregarded).
- (1) In Year 1, the adjusted post-merger amount is the alcohol production amount in relation to the larger producer’s premises for the pre-merger year, determined in accordance with [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-08-01) (and the alcohol production amount attributable to the smaller producer for the pre-merger year is disregarded).
- (2) In Year 2, the adjusted post-merger amount is the total of—
@@ -1698,7 +1698,7 @@
- (4) The amount of the “production difference” for a merger transition year is the difference between—
- (a) the aggregate of the alcohol production amount, in relation to every set of post-merger production group premises, for the previous year (determined in accordance with [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-07-31)), and
- (a) the aggregate of the alcohol production amount, in relation to every set of post-merger production group premises, for the previous year (determined in accordance with [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-08-01)), and
- (b) the adjusted post-merger amount in Year 1.
@@ -1710,81 +1710,81 @@
and vice versa.
- (6) If the amount mentioned in [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/5/2023-07-31) is equal in relation to both SP1’s premises and SP2’s premises, either SP1 or SP2 may be treated as the “*larger producer*” for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-07-31).
- (7) In [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/1/2023-07-31), [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/5/2023-07-31) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/6/2023-07-31), references to a person’s premises are references to—
- (a) the premises on which the person produces alcoholic products immediately before becoming connected with the other person mentioned in [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/1/2023-07-31), if those premises are (at that time) non-group premises, or
- (b) if those premises are group premises, the production group which, at that time, includes those premises (and the reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/1/2023-07-31) to the alcohol production amount in relation to those premises is a reference to the aggregate of the alcohol production amount in relation to those premises and every set of connected premises).
- (6) If the amount mentioned in [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/5/2023-08-01) is equal in relation to both SP1’s premises and SP2’s premises, either SP1 or SP2 may be treated as the “*larger producer*” for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-08-01).
- (7) In [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/1/2023-08-01), [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/5/2023-08-01) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/6/2023-08-01), references to a person’s premises are references to—
- (a) the premises on which the person produces alcoholic products immediately before becoming connected with the other person mentioned in [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/1/2023-08-01), if those premises are (at that time) non-group premises, or
- (b) if those premises are group premises, the production group which, at that time, includes those premises (and the reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/1/2023-08-01) to the alcohol production amount in relation to those premises is a reference to the aggregate of the alcohol production amount in relation to those premises and every set of connected premises).
#### Early termination of merger transition period
##### 65
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/65/2023-07-31) applies in relation to a post-merger production group if, in a relevant year, Amount A is less than Amount B.
- (2) “Amount A” is the aggregate of the alcohol production amount, in relation to every set of premises in the group, for the production year immediately preceding the relevant year (determined in accordance with [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-07-31)).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/65/2023-08-01) applies in relation to a post-merger production group if, in a relevant year, Amount A is less than Amount B.
- (2) “Amount A” is the aggregate of the alcohol production amount, in relation to every set of premises in the group, for the production year immediately preceding the relevant year (determined in accordance with [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-08-01)).
- (3) “Amount B” is the adjusted post-merger amount in the relevant year.
- (4) Neither the relevant year, nor any subsequent production year, is a merger transition year in relation to the group.
- (5) Each of Year 1, 2 and 3 is a “*relevant year*” for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/65/2023-07-31).
- (5) Each of Year 1, 2 and 3 is a “*relevant year*” for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/65/2023-08-01).
#### Subsequent mergers
##### 66
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/66/2023-07-31) applies if—
- (a) a person who produces alcoholic products on group premises which are included in a post-merger production group (the “first post-merger group”) becomes connected with another person who produces alcoholic products (that are not exempt from duty under any of [sections 72](https://www.legislation.gov.uk/ukpga/2023/30/section/72/2023-07-31), [76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-07-31) or [77](https://www.legislation.gov.uk/ukpga/2023/30/section/77/2023-07-31)), and
- (b) the producers mentioned in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/a/2023-07-31) become connected with one another in Year 1, 2 or 3 in relation to the first post-merger group.
- (2) Neither the production year in which the producers mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/a/2023-07-31) become connected with one another, nor any subsequent year, is a merger transition year in relation to the first post-merger group.
- (3) But [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2/2023-07-31) does not prevent the application of [sections 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31) to [67](https://www.legislation.gov.uk/ukpga/2023/30/section/67/2023-07-31) in relation to the post-merger production group that includes both of the producers mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/a/2023-07-31).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/66/2023-08-01) applies if—
- (a) a person who produces alcoholic products on group premises which are included in a post-merger production group (the “first post-merger group”) becomes connected with another person who produces alcoholic products (that are not exempt from duty under any of [sections 72](https://www.legislation.gov.uk/ukpga/2023/30/section/72/2023-08-01), [76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-08-01) or [77](https://www.legislation.gov.uk/ukpga/2023/30/section/77/2023-08-01)), and
- (b) the producers mentioned in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/a/2023-08-01) become connected with one another in Year 1, 2 or 3 in relation to the first post-merger group.
- (2) Neither the production year in which the producers mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/a/2023-08-01) become connected with one another, nor any subsequent year, is a merger transition year in relation to the first post-merger group.
- (3) But [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2/2023-08-01) does not prevent the application of [sections 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01) to [67](https://www.legislation.gov.uk/ukpga/2023/30/section/67/2023-08-01) in relation to the post-merger production group that includes both of the producers mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/66/1/a/2023-08-01).
#### Simultaneous mergers
##### 67
- (1) [Subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/2/2023-07-31) to [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/4/2023-07-31) apply if, at the same time as SP1 becomes connected with SP2, SP1 also becomes connected with one or more other small producers (who are not already connected with one another).
- (2) References in [sections 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31) and [64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-07-31) to SP2 include references to the other small producers becoming connected with SP1.
- (3) For the purposes of [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-07-31)—
- (a) the “larger producer” is the producer with a greater alcohol production amount attributable to the producer’s premises for the pre-merger year than any of the other producers mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/1/2023-07-31), and
- (1) [Subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/2/2023-08-01) to [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/4/2023-08-01) apply if, at the same time as SP1 becomes connected with SP2, SP1 also becomes connected with one or more other small producers (who are not already connected with one another).
- (2) References in [sections 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01) and [64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-08-01) to SP2 include references to the other small producers becoming connected with SP1.
- (3) For the purposes of [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-08-01)—
- (a) the “larger producer” is the producer with a greater alcohol production amount attributable to the producer’s premises for the pre-merger year than any of the other producers mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/1/2023-08-01), and
- (b) each of the other producers is a “smaller producer”,
(and [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/67/3/2023-07-31) applies instead of [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/5/2023-07-31)).
- (4) If the amount mentioned in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/3/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/3/a/2023-07-31) is equal in relation to any two or more of the producers mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/1/2023-07-31), any one of them may be treated as the “*larger producer*” for the purposes of [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-07-31).
(and [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/67/3/2023-08-01) applies instead of [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/5/2023-08-01)).
- (4) If the amount mentioned in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/3/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/67/3/a/2023-08-01) is equal in relation to any two or more of the producers mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/1/2023-08-01), any one of them may be treated as the “*larger producer*” for the purposes of [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-08-01).
#### Demergers
##### 68
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/68/2023-07-31) applies if a demerger event occurs in relation to a production group.
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/68/2023-08-01) applies if a demerger event occurs in relation to a production group.
- (2) A “demerger event” occurs, in relation to a production group, if a group producer (the “demerging producer”) ceases to be connected with at least one other group producer.
- (3) A “*group producer*” in relation to a production group means a person who produces alcoholic products on premises that are (immediately before the demerger event) included in the production group.
- (4) For the purposes of the application of [sections 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-07-31) and [59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-07-31) in relation to the demerger year, the alcohol production amount for the immediately preceding production year, in relation to production premises that were (immediately before the demerger event) included in the group, is treated as being nil.
- (5) If, before the end of the restricted period, the demerging producer becomes connected again with another group producer, none of [sections 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31) to [67](https://www.legislation.gov.uk/ukpga/2023/30/section/67/2023-07-31) apply by reference to that connection.
- (6) For the purposes of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/68/5/2023-07-31), the “restricted period” is the period of 7 years beginning with the date on which the demerger event occurs.
- (7) [Subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/68/8/2023-07-31) applies if the demerger event occurs in Year 1, 2 or 3 in relation to a post-merger production group (the “relevant group”).
- (4) For the purposes of the application of [sections 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-08-01) and [59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-08-01) in relation to the demerger year, the alcohol production amount for the immediately preceding production year, in relation to production premises that were (immediately before the demerger event) included in the group, is treated as being nil.
- (5) If, before the end of the restricted period, the demerging producer becomes connected again with another group producer, none of [sections 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01) to [67](https://www.legislation.gov.uk/ukpga/2023/30/section/67/2023-08-01) apply by reference to that connection.
- (6) For the purposes of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/68/5/2023-08-01), the “restricted period” is the period of 7 years beginning with the date on which the demerger event occurs.
- (7) [Subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/68/8/2023-08-01) applies if the demerger event occurs in Year 1, 2 or 3 in relation to a post-merger production group (the “relevant group”).
- (8) Neither the production year in which the event occurs, nor any subsequent year, is a merger transition year in relation to the relevant group.
- (9) References in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/68/2023-07-31) to the “demerger year” are references to the production year in which the demerger event occurs.
- (9) References in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/68/2023-08-01) to the “demerger year” are references to the production year in which the demerger event occurs.
### Interpretation of Chapter 3
@@ -1792,7 +1792,7 @@
##### 69
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-07-31) applies for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-07-31).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-08-01) applies for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-08-01).
- (2) “*Production premises*” means premises (whether or not in the United Kingdom) on which alcoholic products are produced.
@@ -1818,7 +1818,7 @@
- (6) Production premises are “non-group premises” at a time in a production year if, at that time, they are not group premises.
- (7) In [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-07-31)—
- (7) In [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-08-01)—
- (a) references to the “*producer*”, in relation to a set of premises, are references to the person who produces alcoholic products on those premises, and
@@ -1828,40 +1828,40 @@
##### 70
- (1) References in [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-07-31) to a person being or becoming connected with another person are to be construed in accordance with section 1122 of CTA 2010.
- (2) But the Commissioners may, if they think it appropriate, treat two connected persons as if they were not connected with one another for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-07-31).
- (1) References in [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-08-01) to a person being or becoming connected with another person are to be construed in accordance with section 1122 of CTA 2010.
- (2) But the Commissioners may, if they think it appropriate, treat two connected persons as if they were not connected with one another for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-08-01).
#### Index of defined expressions: Chapter 3
##### 71
The following Table sets out expressions defined or explained for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-07-31)—
The following Table sets out expressions defined or explained for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-08-01)—
| *Expression* | *Provision* |
| --- | --- |
| adjusted post-merger amount | [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/1/2023-07-31) to [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/3/2023-07-31) |
| alcohol production amount | [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/a/2023-07-31) |
| connected premises | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/4/2023-07-31) |
| current year | [section 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/1/2023-07-31) |
| duty discount | [section 59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/59/1/2023-07-31) |
| estimated alcohol production amount | [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/b/2023-07-31) |
| group premises | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/3/2023-07-31) |
| merger transition year | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/4/2023-07-31) |
| non-group premises | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/6/2023-07-31) |
| post-merger production group | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/3/2023-07-31) |
| post-merger production group premises | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2/2023-07-31) |
| previous year | [section 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/4/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/4/b/2023-07-31) |
| producer (in [Chapter 3](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-07-31)) | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/7/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/7/a/2023-07-31) |
| production group | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/5/2023-07-31) |
| production premises | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2/2023-07-31) |
| production year | [section 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/4/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/4/a/2023-07-31) |
| small producer | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/7/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/7/b/2023-07-31) |
| small producer alcoholic products | [section 55](https://www.legislation.gov.uk/ukpga/2023/30/section/55/2023-07-31) |
| small production limit | [section 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/56/4/2023-07-31) |
| small production premises | [section 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-07-31) (for general purposes); [section 62](https://www.legislation.gov.uk/ukpga/2023/30/section/62/2023-07-31) (in relation to a post-merger production group) |
| SP1 and SP2 | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/1/2023-07-31) |
| Year 1, Year 2 and Year 3 | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/3/2023-07-31) |
| adjusted post-merger amount | [section 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/1/2023-08-01) to [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/64/3/2023-08-01) |
| alcohol production amount | [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/a/2023-08-01) |
| connected premises | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/4/2023-08-01) |
| current year | [section 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/1/2023-08-01) |
| duty discount | [section 59](https://www.legislation.gov.uk/ukpga/2023/30/section/59/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/59/1/2023-08-01) |
| estimated alcohol production amount | [section 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/57/1/b/2023-08-01) |
| group premises | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/3/2023-08-01) |
| merger transition year | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/4/2023-08-01) |
| non-group premises | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/6/2023-08-01) |
| post-merger production group | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/3/2023-08-01) |
| post-merger production group premises | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2/2023-08-01) |
| previous year | [section 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/4/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/4/b/2023-08-01) |
| producer (in [Chapter 3](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-08-01)) | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/7/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/7/a/2023-08-01) |
| production group | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/5/2023-08-01) |
| production premises | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2/2023-08-01) |
| production year | [section 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/4/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/54/4/a/2023-08-01) |
| small producer | [section 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/7/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/69/7/b/2023-08-01) |
| small producer alcoholic products | [section 55](https://www.legislation.gov.uk/ukpga/2023/30/section/55/2023-08-01) |
| small production limit | [section 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/56/4/2023-08-01) |
| small production premises | [section 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56/2023-08-01) (for general purposes); [section 62](https://www.legislation.gov.uk/ukpga/2023/30/section/62/2023-08-01) (in relation to a post-merger production group) |
| SP1 and SP2 | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/1/2023-08-01) |
| Year 1, Year 2 and Year 3 | [section 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/61/3/2023-08-01) |
### Chapter 4 — Other reliefs and exemptions
@@ -1881,7 +1881,7 @@
##### 73
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/73/2023-07-31) applies where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/73/2023-08-01) applies where—
- (a) alcohol duty is chargeable on alcoholic products produced in the United Kingdom, and
@@ -1893,7 +1893,7 @@
##### 74
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/74/2023-07-31) applies where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/74/2023-08-01) applies where—
- (a) alcohol duty is chargeable on alcoholic products, and
@@ -1905,7 +1905,7 @@
##### 75
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2/2023-07-31) applies where a person proves to the satisfaction of the Commissioners that—
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2/2023-08-01) applies where a person proves to the satisfaction of the Commissioners that—
- (a) alcohol duty is chargeable, and has been paid, on alcoholic products, and
@@ -1915,9 +1915,9 @@
- (ii) a beverage of an alcoholic strength of 1.2% or less.
- (2) The person is entitled to repayment of the alcohol duty, on making a claim in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-07-31) (subject to [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/7/2023-07-31)).
- (3) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-07-31) “*qualifying food product*” means—
- (2) The person is entitled to repayment of the alcohol duty, on making a claim in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-08-01) (subject to [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/7/2023-08-01)).
- (3) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-08-01) “*qualifying food product*” means—
- (a) vinegar,
@@ -1925,7 +1925,7 @@
- (c) any other food (for human consumption) which contains alcohol, where 100 kilograms of the food would not contain more than 5 litres of alcohol.
- (4) Alcoholic products that are converted into vinegar are treated, for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-07-31), as being used as an ingredient in the production or manufacture of vinegar.
- (4) Alcoholic products that are converted into vinegar are treated, for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-08-01), as being used as an ingredient in the production or manufacture of vinegar.
- (5) Neither of the following is a qualifying food product for the purposes of this section—
@@ -1933,7 +1933,7 @@
- (b) a product that is intended for consumption as a substitute for a beverage.
- (6) A claim for repayment under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-07-31)—
- (6) A claim for repayment under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-08-01)—
- (a) must be in the form and manner, and contain the information, required by the Commissioners (either generally or in a particular case), and
@@ -1943,9 +1943,9 @@
- (8) The Commissioners may remit any alcohol duty chargeable—
- (a) on alcoholic products imported into the United Kingdom at a time when they are contained as an ingredient in a qualifying food product within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/b/2023-07-31) or [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/c/2023-07-31), or
- (b) on alcoholic products used as an ingredient in the manufacture or production in an excise warehouse of a qualifying food product within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/b/2023-07-31) or [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/c/2023-07-31).
- (a) on alcoholic products imported into the United Kingdom at a time when they are contained as an ingredient in a qualifying food product within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/b/2023-08-01) or [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/c/2023-08-01), or
- (b) on alcoholic products used as an ingredient in the manufacture or production in an excise warehouse of a qualifying food product within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/b/2023-08-01) or [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/75/3/c/2023-08-01).
### Spirits
@@ -1963,7 +1963,7 @@
- (1) Alcohol duty is not charged on spirits contained in food and drink flavourings.
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/77/2023-07-31)—
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/77/2023-08-01)—
- “*food and drink flavourings*” means any qualifying flavourings which are for use in—the preparation of food for human consumption, orthe preparation of any beverage of an alcoholic strength not exceeding 1.2%;
@@ -1973,13 +1973,13 @@
##### 78
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) applies where a person proposes to use spirits, on which alcohol duty is chargeable, either—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) applies where a person proposes to use spirits, on which alcohol duty is chargeable, either—
- (a) in the manufacture or preparation of medical articles, or
- (b) for scientific purposes.
- (2) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) also applies where—
- (2) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) also applies where—
- (a) a person proposes to use spirits, on which alcohol duty is chargeable, for the purposes of art or manufacture (other than the manufacture of medical articles), and
@@ -1987,13 +1987,13 @@
- (3) The Commissioners may authorise the person to receive the spirits, and permit the delivery of the spirits from relevant premises to that person, without payment of the alcohol duty.
- (4) In [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/78/3/2023-07-31), “*relevant premises*” means—
- (4) In [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/78/3/2023-08-01), “*relevant premises*” means—
- (a) an excise warehouse, or
- (b) premises in respect of which a person is approved (including premises on which a person is authorised to hold alcoholic products without payment of duty) under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31).
- (5) An authorisation under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) may be given subject to the conditions (if any)—
- (b) premises in respect of which a person is approved (including premises on which a person is authorised to hold alcoholic products without payment of duty) under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01).
- (5) An authorisation under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) may be given subject to the conditions (if any)—
- (a) specified by the Commissioners in a notice published by them;
@@ -2001,19 +2001,19 @@
- (6) If a person fails to comply with a condition in respect of an authorisation, the failure attracts a penalty under section 9 of FA 1994.
- (7) [Subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/78/8/2023-07-31) applies if—
- (a) the spirits are delivered to the person mentioned in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/78/3/2023-07-31), and
- (7) [Subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/78/8/2023-08-01) applies if—
- (a) the spirits are delivered to the person mentioned in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/78/3/2023-08-01), and
- (b) the spirits are used otherwise than for the purpose in respect of which the authorisation was given.
- (8) The Commissioners—
- (a) may assess as being alcohol duty due from the person an amount equal to the alcohol duty that would have been charged on the spirits if, at the time of delivery, no authorisation under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) had been given, and
- (a) may assess as being alcohol duty due from the person an amount equal to the alcohol duty that would have been charged on the spirits if, at the time of delivery, no authorisation under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) had been given, and
- (b) must notify that person or the person’s representative of the assessment.
- (9) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) “*medical article*” has the same meaning as in [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-07-31).
- (9) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) “*medical article*” has the same meaning as in [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-08-01).
#### Imported goods not for human consumption
@@ -2023,33 +2023,33 @@
- (2) If it turns out that the goods containing spirits are for human consumption, the Commissioners—
- (a) may assess as being alcohol duty due from the relevant person an amount equal to the alcohol duty that would (apart from [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/79/1/2023-07-31)) have been charged on the goods, and
- (a) may assess as being alcohol duty due from the relevant person an amount equal to the alcohol duty that would (apart from [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/79/1/2023-08-01)) have been charged on the goods, and
- (b) must notify the relevant person or that person’s representative of the assessment.
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2/2023-07-31), references to “*the relevant person*” are references to the importer.
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2/2023-08-01), references to “*the relevant person*” are references to the importer.
#### Restrictions on use of certain articles
##### 80
- (1) If a person makes unauthorised use of an article to which [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-07-31) applies—
- (1) If a person makes unauthorised use of an article to which [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-08-01) applies—
- (a) that conduct attracts a penalty under section 9 of FA 1994, and
- (b) the article is liable to forfeiture.
- (2) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-07-31) applies to—
- (a) an article containing spirits which are exempt under [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-07-31) from the charge to alcohol duty;
- (b) an article in respect of which spirits were used in the manufacture or preparation, where remission of alcohol duty on the spirits was obtained under [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31).
- (3) A person makes “unauthorised use” of an article for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-07-31) if—
- (2) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-08-01) applies to—
- (a) an article containing spirits which are exempt under [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-08-01) from the charge to alcohol duty;
- (b) an article in respect of which spirits were used in the manufacture or preparation, where remission of alcohol duty on the spirits was obtained under [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01).
- (3) A person makes “unauthorised use” of an article for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-08-01) if—
- (a) the person uses the article other than for medical or scientific purposes, and
- (b) the person has not complied with the requirements under [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/80/4/2023-07-31).
- (b) the person has not complied with the requirements under [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/80/4/2023-08-01).
- (4) The requirements are that—
@@ -2057,23 +2057,23 @@
- (b) the person must pay to the Commissioners an amount equal to the duty shortfall.
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-07-31), the “*duty shortfall*” means—
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-08-01), the “*duty shortfall*” means—
- (a) the difference between the duty charged on the spirits contained in, or used in the manufacture or preparation of, the article, and
- (b) the duty which would have been chargeable had the article not been exempt under [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-07-31) or the duty had not been remitted under [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31).
- (6) The Commissioners may make regulations for the purpose of enforcing [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-07-31).
- (7) Regulations under [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/80/6/2023-07-31) may, in particular, require a person carrying on any trade in which spirits or articles containing, manufactured or prepared with spirits are, in the opinion of the Commissioners, likely to be or have been used—
- (b) the duty which would have been chargeable had the article not been exempt under [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-08-01) or the duty had not been remitted under [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01).
- (6) The Commissioners may make regulations for the purpose of enforcing [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-08-01).
- (7) Regulations under [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/80/6/2023-08-01) may, in particular, require a person carrying on any trade in which spirits or articles containing, manufactured or prepared with spirits are, in the opinion of the Commissioners, likely to be or have been used—
- (a) to give and verify particulars of the materials which the person is using or has used, or the articles the person has sold;
- (b) to produce any documents (of whatever nature) relating to such materials or articles.
- (8) If a person contravenes or fails to comply with any regulation made under [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/80/6/2023-07-31), the contravention or failure attracts a penalty under section 9 of FA 1994.
- (9) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-07-31), a reference to an article includes a reference to any part of that article.
- (8) If a person contravenes or fails to comply with any regulation made under [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/80/6/2023-08-01), the contravention or failure attracts a penalty under section 9 of FA 1994.
- (9) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/80/2023-08-01), a reference to an article includes a reference to any part of that article.
### Remission and repayment
@@ -2081,7 +2081,7 @@
##### 81
- (1) The remission or repayment of alcohol duty under any provision of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/4/2023-07-31) is subject to the conditions (if any)—
- (1) The remission or repayment of alcohol duty under any provision of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/4/2023-08-01) is subject to the conditions (if any)—
- (a) specified by the Commissioners in a notice published by them;
@@ -2099,13 +2099,13 @@
- (1) A person may not produce alcoholic products on any premises unless—
- (a) the production on those premises is in accordance with an approval given under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) by the Commissioners to the person, or
- (b) the person is exempt from the approval requirement under [section 84](https://www.legislation.gov.uk/ukpga/2023/30/section/84/2023-07-31) or [85](https://www.legislation.gov.uk/ukpga/2023/30/section/85/2023-07-31).
- (2) The Commissioners may approve a person under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) only if they are satisfied that the person is a fit and proper person to produce alcoholic products.
- (3) An approval under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) may authorise the approved person to hold alcoholic products (including alcoholic products produced by another person in, or imported into, the United Kingdom) on certain premises without payment of alcohol duty.
- (a) the production on those premises is in accordance with an approval given under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) by the Commissioners to the person, or
- (b) the person is exempt from the approval requirement under [section 84](https://www.legislation.gov.uk/ukpga/2023/30/section/84/2023-08-01) or [85](https://www.legislation.gov.uk/ukpga/2023/30/section/85/2023-08-01).
- (2) The Commissioners may approve a person under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) only if they are satisfied that the person is a fit and proper person to produce alcoholic products.
- (3) An approval under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) may authorise the approved person to hold alcoholic products (including alcoholic products produced by another person in, or imported into, the United Kingdom) on certain premises without payment of alcohol duty.
- (4) A person may not carry out other activities on those premises in relation to those alcoholic products, without payment of alcohol duty, except in accordance with an approval under this section.
@@ -2115,7 +2115,7 @@
##### 83
- (1) An approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) may be given to a person—
- (1) An approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) may be given to a person—
- (a) in respect of—
@@ -2141,7 +2141,7 @@
##### 84
For the purposes of [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/82/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/82/1/b/2023-07-31), a person is exempt from the approval requirement if—
For the purposes of [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/82/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/82/1/b/2023-08-01), a person is exempt from the approval requirement if—
- (a) the person produces alcoholic products only for the person’s own domestic use, and
@@ -2151,7 +2151,7 @@
##### 85
For the purposes of [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/82/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/82/1/b/2023-07-31), a person is exempt from the approval requirement if—
For the purposes of [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/82/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/82/1/b/2023-08-01), a person is exempt from the approval requirement if—
- (a) the person produces alcoholic products only for the purposes of research into, or experiments in, the production of alcoholic products, and
@@ -2171,7 +2171,7 @@
- (a) either—
- (i) in accordance with an approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31), or
- (i) in accordance with an approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01), or
- (ii) in an excise warehouse, and
@@ -2179,7 +2179,7 @@
- (3) The second exemption applies if all of the alcoholic products being mixed—
- (a) fall within the same paragraph of [section 44](https://www.legislation.gov.uk/ukpga/2023/30/section/44/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/44/1/2023-07-31), and
- (a) fall within the same paragraph of [section 44](https://www.legislation.gov.uk/ukpga/2023/30/section/44/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/44/1/2023-08-01), and
- (b) are of the same alcoholic strength.
@@ -2209,7 +2209,7 @@
- (c) if the mixing had taken place immediately before the excise duty point, the amount of alcohol duty would have been greater than the amount actually payable.
- (2) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/87/2023-07-31) has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of relevant alcoholic products to the United Kingdom from the Isle of Man constituted their importation into the United Kingdom (and references to the charge to alcohol duty and to the excise duty point are to be read accordingly).
- (2) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/87/2023-08-01) has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of relevant alcoholic products to the United Kingdom from the Isle of Man constituted their importation into the United Kingdom (and references to the charge to alcohol duty and to the excise duty point are to be read accordingly).
#### Alcoholic products regulations
@@ -2259,7 +2259,7 @@
- (g) for the imposition under the regulations of conditions and restrictions (which may include a requirement to give a guarantee or other security).
- (3) The reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/88/1/2023-07-31)[(k)](https://www.legislation.gov.uk/ukpga/2023/30/section/88/1/k/2023-07-31) to alcoholic products permitted to be removed from premises without payment of duty is treated as including a reference to alcoholic products that are—
- (3) The reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/88/1/2023-08-01)[(k)](https://www.legislation.gov.uk/ukpga/2023/30/section/88/1/k/2023-08-01) to alcoholic products permitted to be removed from premises without payment of duty is treated as including a reference to alcoholic products that are—
- (a) treated for the purposes of alcohol duty, by provision made (or having effect as if made) under section 12 of the Customs and Excise Duties (General Reliefs) Act 1979 (supply of duty-free goods to His Majesty’s ships), as exported,
@@ -2273,13 +2273,13 @@
##### 89
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/89/2023-07-31) applies if a person contravenes or fails to comply with—
- (a) [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31),
- (b) [section 86](https://www.legislation.gov.uk/ukpga/2023/30/section/86/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/86/1/2023-07-31),
- (c) [section 87](https://www.legislation.gov.uk/ukpga/2023/30/section/87/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/87/1/2023-07-31), or
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/89/2023-08-01) applies if a person contravenes or fails to comply with—
- (a) [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01),
- (b) [section 86](https://www.legislation.gov.uk/ukpga/2023/30/section/86/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/86/1/2023-08-01),
- (c) [section 87](https://www.legislation.gov.uk/ukpga/2023/30/section/87/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/87/1/2023-08-01), or
- (d) any provision made by or under alcoholic products regulations.
@@ -2297,7 +2297,7 @@
- (2) “*Denatured alcohol*” means an alcoholic product which has been mixed with a substance, and in a manner, specified by or under regulations made by the Commissioners (and references, however expressed, to “denaturing” alcoholic products are to be construed accordingly).
- (3) Provision made under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/90/2/2023-07-31) may include provision specifying a substance, or a manner of mixing, by reference to particular circumstances or other factors, or to the approval or opinion of specified persons.
- (3) Provision made under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/90/2/2023-08-01) may include provision specifying a substance, or a manner of mixing, by reference to particular circumstances or other factors, or to the approval or opinion of specified persons.
- (4) Where—
@@ -2311,15 +2311,15 @@
##### 91
- (1) A person may not denature any alcoholic products, or deal wholesale in denatured alcohol, unless the person holds an excise licence as a denaturer under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31).
- (2) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31), a person deals wholesale in denatured alcohol if the person sells, at any one time to any one person—
- (1) A person may not denature any alcoholic products, or deal wholesale in denatured alcohol, unless the person holds an excise licence as a denaturer under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01).
- (2) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01), a person deals wholesale in denatured alcohol if the person sells, at any one time to any one person—
- (a) a quantity of at least 20 litres of denatured alcohol, or
- (b) a smaller quantity, specified by or under regulations made by the Commissioners, of denatured alcohol.
- (3) The Commissioners may, at any time, revoke or suspend an excise licence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31).
- (3) The Commissioners may, at any time, revoke or suspend an excise licence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01).
- (4) An application for an excise licence as a denaturer must be in the form and manner, and contain the information, specified by the Commissioners in a notice published by them.
@@ -2335,19 +2335,19 @@
- (c) permitting alcoholic products to be denatured in a warehouse;
- (d) permitting dealing wholesale (within the meaning of [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31)) in denatured alcohol of a specified description, in specified circumstances, without an excise licence;
- (d) permitting dealing wholesale (within the meaning of [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01)) in denatured alcohol of a specified description, in specified circumstances, without an excise licence;
- (e) regulating the import, receipt, removal, storage and use of alcoholic products for denaturing;
- (f) regulating the storage and removal of substances to be used in denaturing alcoholic products;
- (g) about the manner in which account is to be kept of stocks of denatured alcohol in the possession of persons licensed as denaturers under [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31) and of retailers of denatured alcohol.
- (2) Regulations under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-07-31) may, in particular, include provision—
- (g) about the manner in which account is to be kept of stocks of denatured alcohol in the possession of persons licensed as denaturers under [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01) and of retailers of denatured alcohol.
- (2) Regulations under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-08-01) may, in particular, include provision—
- (a) for applications and other communications with the Commissioners to be made electronically;
- (b) requiring persons licensed as denaturers under [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31) and retailers of denatured alcohol to keep, and make available for inspection, specified records relating to denaturing;
- (b) requiring persons licensed as denaturers under [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01) and retailers of denatured alcohol to keep, and make available for inspection, specified records relating to denaturing;
- (c) conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period those records;
@@ -2359,13 +2359,13 @@
##### 93
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/93/2023-07-31) applies if a person—
- (a) fails to comply with [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/91/1/2023-07-31) (denaturing alcoholic products, or dealing wholesale in denatured alcohol, otherwise than in accordance with an excise licence), or
- (b) contravenes or fails to comply with any provision made by or under regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-07-31).
- (2) Conduct mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/93/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/93/1/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/93/1/b/2023-07-31) attracts a penalty under section 9 of FA 1994.
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/93/2023-08-01) applies if a person—
- (a) fails to comply with [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/91/1/2023-08-01) (denaturing alcoholic products, or dealing wholesale in denatured alcohol, otherwise than in accordance with an excise licence), or
- (b) contravenes or fails to comply with any provision made by or under regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-08-01).
- (2) Conduct mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/93/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/93/1/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/93/1/b/2023-08-01) attracts a penalty under section 9 of FA 1994.
- (3) Any alcoholic product or denatured alcohol, article (including packaging or equipment) or substance in the person’s possession, used (or which may be used) for or in connection with an action to which the contravention or failure relates is liable to forfeiture.
@@ -2373,7 +2373,7 @@
##### 94
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/94/2023-07-31) applies if, in relation to a person who holds an excise licence under [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31) (the “denaturer”), at a time when an account is taken of the quantity of denatured alcohol in the denaturer’s possession—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/94/2023-08-01) applies if, in relation to a person who holds an excise licence under [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01) (the “denaturer”), at a time when an account is taken of the quantity of denatured alcohol in the denaturer’s possession—
- (a) there is a difference between the actual amount and the proper amount, and
@@ -2383,11 +2383,11 @@
- (ii) where the proper amount exceeds the actual amount, the amount of the excess is more than 2% of the permitted amount.
- (2) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/2023-07-31)—
- (2) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/2023-08-01)—
- (a) the “actual amount” is the quantity of alcoholic products of any description in the denatured alcohol in the denaturer’s possession;
- (b) the “proper amount” is the quantity of alcoholic products of the same description which, according to any accounts that are required to be kept by or under any regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-07-31), ought to be in the denatured alcohol in the denaturer’s possession.
- (b) the “proper amount” is the quantity of alcoholic products of the same description which, according to any accounts that are required to be kept by or under any regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-08-01), ought to be in the denatured alcohol in the denaturer’s possession.
- (3) Where there is a difference between the actual amount and the proper amount, in relation to alcoholic products of a particular description, the “permitted amount” is the aggregate of—
@@ -2395,23 +2395,23 @@
- (b) the quantity of alcoholic products of that description that have since been lawfully added to the denaturer’s stock.
- (4) In a case within [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/i/2023-07-31), the relevant amount of any alcoholic products of the description to which the difference relates in the denaturer’s possession is liable to forfeiture.
- (5) The “*relevant amount*” for the purposes of [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/4/2023-07-31) is the amount corresponding to the amount of the excess mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/i/2023-07-31), or such smaller amount as the Commissioners consider appropriate.
- (6) In a case within [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/2023-07-31)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/ii/2023-07-31), the denaturer must, on demand by the Commissioners, pay alcohol duty—
- (4) In a case within [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/i/2023-08-01), the relevant amount of any alcoholic products of the description to which the difference relates in the denaturer’s possession is liable to forfeiture.
- (5) The “*relevant amount*” for the purposes of [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/4/2023-08-01) is the amount corresponding to the amount of the excess mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/i/2023-08-01), or such smaller amount as the Commissioners consider appropriate.
- (6) In a case within [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/2023-08-01)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/94/1/b/ii/2023-08-01), the denaturer must, on demand by the Commissioners, pay alcohol duty—
- (a) on the amount of alcoholic products (of the same description) equal to the amount of the difference, or
- (b) if the Commissioners specify a smaller amount of alcoholic products (of the same description) in the demand, on that amount.
- (7) A demand made for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/94/2023-07-31) is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments to excise duty) with an assessment and notification under that section of the amount of duty due in consequence of the demand.
- (7) A demand made for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/94/2023-08-01) is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments to excise duty) with an assessment and notification under that section of the amount of duty due in consequence of the demand.
#### Defaults in respect of denatured alcohol: supply and use of denatured alcohol
##### 95
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/95/2023-07-31) applies if a person, in contravention of regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-07-31), uses or supplies denatured alcohol containing alcoholic products of any description.
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/95/2023-08-01) applies if a person, in contravention of regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-08-01), uses or supplies denatured alcohol containing alcoholic products of any description.
- (2) The person must, on demand by the Commissioners, pay alcohol duty—
@@ -2419,15 +2419,15 @@
- (b) if the Commissioners specify a smaller amount of alcoholic products (of the same description) in the demand, on that amount.
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/95/2023-07-31), a supply of denatured alcohol to a person who—
- (a) by reason of regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-07-31) is prohibited from receiving it unless authorised to do so by or under the regulations, but
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/95/2023-08-01), a supply of denatured alcohol to a person who—
- (a) by reason of regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-08-01) is prohibited from receiving it unless authorised to do so by or under the regulations, but
- (b) is not so authorised,
is treated as being a supply in contravention of those regulations.
- (4) A demand made for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/95/2023-07-31) is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments to excise duty) with an assessment and notification under that section of the amount of duty due in consequence of the demand.
- (4) A demand made for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/95/2023-08-01) is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments to excise duty) with an assessment and notification under that section of the amount of duty due in consequence of the demand.
#### Inspection of premises etc
@@ -2435,13 +2435,13 @@
- (1) An officer of Revenue and Customs may, at any reasonable time—
- (a) enter and inspect the premises of a person authorised by regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-07-31) to receive denatured alcohol,
- (a) enter and inspect the premises of a person authorised by regulations under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-08-01) to receive denatured alcohol,
- (b) inspect and examine any denatured alcohol on the premises, and
- (c) take samples of any denatured alcohol or of any goods containing denatured alcohol (paying a reasonable price for each sample).
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/96/1/2023-07-31) does not affect any other power conferred by the customs and excise Acts.
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/96/1/2023-08-01) does not affect any other power conferred by the customs and excise Acts.
#### Prohibition of use of denatured alcohol etc as beverage or medicine
@@ -2451,11 +2451,11 @@
- (a) to prepare, or attempt to prepare, denatured alcohol for use as a beverage or as a mixture with a beverage;
- (b) to sell denatured alcohol (whether or not prepared as described in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/1/a/2023-07-31)) as a beverage or mixed with a beverage;
- (b) to sell denatured alcohol (whether or not prepared as described in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/1/a/2023-08-01)) as a beverage or mixed with a beverage;
- (c) to use any denatured alcohol or a derivative of it in the preparation of any article capable of being used as a beverage;
- (d) to sell or possess any article capable of being used as described in [paragraph (c)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/1/c/2023-07-31), in the preparation of which denatured alcohol or any derivative of it has been used;
- (d) to sell or possess any article capable of being used as described in [paragraph (c)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/1/c/2023-08-01), in the preparation of which denatured alcohol or any derivative of it has been used;
- (e) except as permitted by the Commissioners and in accordance with any conditions imposed by them—
@@ -2463,27 +2463,27 @@
- (ii) after denatured alcohol has once been used, to attempt to recover the spirit or alcohol contained in it by distillation, condensation or in any other manner.
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/1/2023-07-31) is subject to [subsections (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/5/2023-07-31) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/6/2023-07-31).
- (3) A person who commits an offence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-07-31) is liable on summary conviction to a penalty not exceeding level 3 on the standard scale.
- (4) Any denatured alcohol, or any article (including packaging or equipment), in respect of which an offence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-07-31) is committed is liable to forfeiture.
- (5) No offence is committed under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-07-31) where a person uses denatured alcohol or any derivative of it—
- (a) in the preparation for use as a medical article (as defined in [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-07-31)),
- (b) in the making of anything sold or supplied in accordance with regulations made by the Commissioners under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-07-31), or
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/1/2023-08-01) is subject to [subsections (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/5/2023-08-01) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/6/2023-08-01).
- (3) A person who commits an offence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-08-01) is liable on summary conviction to a penalty not exceeding level 3 on the standard scale.
- (4) Any denatured alcohol, or any article (including packaging or equipment), in respect of which an offence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-08-01) is committed is liable to forfeiture.
- (5) No offence is committed under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-08-01) where a person uses denatured alcohol or any derivative of it—
- (a) in the preparation for use as a medical article (as defined in [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-08-01)),
- (b) in the making of anything sold or supplied in accordance with regulations made by the Commissioners under [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-08-01), or
- (c) in art or manufacture.
- (6) No offence is committed under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-07-31) where a person sells or possesses anything that—
- (a) is permitted to be prepared or made, by reference to [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/5/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/5/b/2023-07-31) of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/5/2023-07-31), for a use described in that paragraph, and
- (6) No offence is committed under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-08-01) where a person sells or possesses anything that—
- (a) is permitted to be prepared or made, by reference to [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/5/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/5/b/2023-08-01) of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/97/5/2023-08-01), for a use described in that paragraph, and
- (b) is sold or possessed for that use.
- (7) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-07-31), references to denatured alcohol include references to—
- (7) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/97/2023-08-01), references to denatured alcohol include references to—
- (a) methanol, and
@@ -2495,11 +2495,11 @@
##### 98
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31) defines certain expressions used in [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01) defines certain expressions used in [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01).
- (2) A sale is of “controlled alcoholic products” if—
- (a) it is a sale of alcoholic products on which alcohol duty is charged under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) at a rate greater than nil, and
- (a) it is a sale of alcoholic products on which alcohol duty is charged under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) at a rate greater than nil, and
- (b) the excise duty point for the alcoholic products falls at or before the time of the sale.
@@ -2523,7 +2523,7 @@
- (5) A sale is an “authorised retail sale” if it is made by retail under and in accordance with a licence or other authorisation under an enactment regulating the sale and supply of alcohol.
- (6) A sale is a “group sale” if the seller and the buyer are both bodies corporate which are members of the same group (see [section 106](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-07-31)).
- (6) A sale is a “group sale” if the seller and the buyer are both bodies corporate which are members of the same group (see [section 106](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-08-01)).
- (7) A sale is an “excluded sale” if it is of a description specified by or under regulations made by the Commissioners.
@@ -2545,13 +2545,13 @@
- (c) Northern Ireland legislation.
- (11) References in [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) to the “alcohol wholesaling provisions” are references to [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31) and [sections 99](https://www.legislation.gov.uk/ukpga/2023/30/section/99/2023-07-31) to [106](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-07-31), and [Schedule 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31).
- (11) References in [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) to the “alcohol wholesaling provisions” are references to [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01) and [sections 99](https://www.legislation.gov.uk/ukpga/2023/30/section/99/2023-08-01) to [106](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-08-01), and [Schedule 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01).
#### Further provision relating to definitions
##### 99
- (1) The Commissioners may by regulations make provision as to the cases in which sales are, or are not, to be treated for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) as—
- (1) The Commissioners may by regulations make provision as to the cases in which sales are, or are not, to be treated for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) as—
- (a) wholesale sales,
@@ -2563,17 +2563,17 @@
- (e) group sales.
- (2) The Commissioners may by regulations make provision as to the cases in which a person is, or is not, to be treated for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) as carrying on a controlled activity by virtue of [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/8/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/8/b/2023-07-31) or [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/8/c/2023-07-31).
- (2) The Commissioners may by regulations make provision as to the cases in which a person is, or is not, to be treated for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) as carrying on a controlled activity by virtue of [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/8/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/8/b/2023-08-01) or [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/8/c/2023-08-01).
#### Approval to carry on controlled activity
##### 100
- (1) A UK person may not carry on a controlled activity otherwise than in accordance with an approval given by the Commissioners under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31).
- (2) The Commissioners may approve a person under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31) to carry on a controlled activity only if they are satisfied that the person is a fit and proper person to carry on the activity.
- (3) The Commissioners may approve a person under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31) to carry on a controlled activity for such period as they think fit.
- (1) A UK person may not carry on a controlled activity otherwise than in accordance with an approval given by the Commissioners under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01).
- (2) The Commissioners may approve a person under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01) to carry on a controlled activity only if they are satisfied that the person is a fit and proper person to carry on the activity.
- (3) The Commissioners may approve a person under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01) to carry on a controlled activity for such period as they think fit.
- (4) An approval may be given subject to the conditions or restrictions (if any)—
@@ -2585,9 +2585,9 @@
- (5) The conditions or restrictions may include conditions or restrictions requiring the controlled activity to be carried on only at or from premises specified or approved by the Commissioners.
- (6) The Commissioners may at any time revoke or vary the terms of an approval under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31).
- (7) In [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) “*approved wholesaler*” means a person approved under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31) to carry on a controlled activity.
- (6) The Commissioners may at any time revoke or vary the terms of an approval under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01).
- (7) In [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) “*approved wholesaler*” means a person approved under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01) to carry on a controlled activity.
#### The register of approved wholesalers
@@ -2611,7 +2611,7 @@
- (b) regulating the variation or revocation of any such approval or registration or of any condition or restriction to which such an approval or registration is subject,
- (c) about the register maintained under [section 101](https://www.legislation.gov.uk/ukpga/2023/30/section/101/2023-07-31),
- (c) about the register maintained under [section 101](https://www.legislation.gov.uk/ukpga/2023/30/section/101/2023-08-01),
- (d) regulating the carrying on of controlled activities, and
@@ -2625,7 +2625,7 @@
- (i) the regulations, or
- (ii) [Schedule 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31);
- (ii) [Schedule 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01);
- (c) requiring approved wholesalers to keep and make available for inspection such records relating to controlled activities as may be specified by or under the regulations;
@@ -2641,7 +2641,7 @@
- (g) for alcoholic products (whether or not charged with any duty and whether or not that duty has been paid) to be subject to forfeiture for a contravention of—
- (i) the alcohol wholesaling provisions or the regulations made under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/102/2023-07-31), or
- (i) the alcohol wholesaling provisions or the regulations made under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/102/2023-08-01), or
- (ii) any condition or restriction imposed under the alcohol wholesaling provisions.
@@ -2655,35 +2655,35 @@
- (b) buy relevant alcoholic products from an Isle of Man person, unless the person is an Isle of Man approved wholesaler.
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-07-31) and in [section 104](https://www.legislation.gov.uk/ukpga/2023/30/section/104/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/104/4/2023-07-31)—
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-08-01) and in [section 104](https://www.legislation.gov.uk/ukpga/2023/30/section/104/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/104/4/2023-08-01)—
- (a) “*Isle of Man person*” means a person who is established in the Isle of Man for the purposes of value added tax under any provision of the law in force in the Isle of Man corresponding to paragraph 1(10) of Schedule 1 to VATA 1994;
- (b) “*Isle of Man approved wholesaler*” means an Isle of Man person who is approved under any provision of the law in force in the Isle of Man corresponding to [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31);
- (c) “*relevant alcoholic products*” means alcoholic products which, if they had been produced in the United Kingdom, would have been charged with alcohol duty under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31)at a rate greater than nil.
- (b) “*Isle of Man approved wholesaler*” means an Isle of Man person who is approved under any provision of the law in force in the Isle of Man corresponding to [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01);
- (c) “*relevant alcoholic products*” means alcoholic products which, if they had been produced in the United Kingdom, would have been charged with alcohol duty under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01)at a rate greater than nil.
#### Offences
##### 104
- (1) A person who contravenes [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-07-31) by selling controlled alcoholic products wholesale commits an offence if the person knows or has reasonable grounds to suspect that—
- (1) A person who contravenes [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-08-01) by selling controlled alcoholic products wholesale commits an offence if the person knows or has reasonable grounds to suspect that—
- (a) the buyer is carrying on a trade or business, and
- (b) the alcoholic products are for sale or supply in the course of that trade or business.
- (2) A person who contravenes [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-07-31) by offering or exposing controlled alcoholic products for sale in circumstances in which the sale (if made) would be a wholesale sale commits an offence if the person intends to make a wholesale sale of the alcoholic products.
- (3) A person who contravenes [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-07-31) by arranging in the course of a trade or business for controlled alcoholic products to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if made) would be a wholesale sale, commits an offence if the person intends to arrange for the alcoholic products to be sold wholesale.
- (4) A person who contravenes [section 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-07-31) commits an offence if the person knows or has reasonable grounds to suspect that—
- (2) A person who contravenes [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-08-01) by offering or exposing controlled alcoholic products for sale in circumstances in which the sale (if made) would be a wholesale sale commits an offence if the person intends to make a wholesale sale of the alcoholic products.
- (3) A person who contravenes [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-08-01) by arranging in the course of a trade or business for controlled alcoholic products to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if made) would be a wholesale sale, commits an offence if the person intends to arrange for the alcoholic products to be sold wholesale.
- (4) A person who contravenes [section 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-08-01) commits an offence if the person knows or has reasonable grounds to suspect that—
- (a) the UK person from whom the controlled alcoholic products are bought is not an approved wholesaler in relation to the sale, or
- (b) the Isle of Man person from whom the relevant alcoholic products are bought is not an Isle of Man approved wholesaler in relation to the sale.
- (5) A person who commits an offence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/104/2023-07-31) is liable on summary conviction—
- (5) A person who commits an offence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/104/2023-08-01) is liable on summary conviction—
- (a) in England and Wales to—
@@ -2709,7 +2709,7 @@
- (iii) both.
- (6) A person who commits an offence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/104/2023-07-31) is liable on conviction on indictment to—
- (6) A person who commits an offence under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/104/2023-08-01) is liable on conviction on indictment to—
- (a) imprisonment for a period not exceeding 7 years,
@@ -2721,7 +2721,7 @@
##### 105
[Schedule 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31) contains provision about penalties for contraventions of the alcohol wholesaling provisions.
[Schedule 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01) contains provision about penalties for contraventions of the alcohol wholesaling provisions.
#### Groups
@@ -2735,13 +2735,13 @@
- (c) two or more individuals carrying on a business in partnership control all of them.
- (2) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-07-31), a body corporate is to be taken to control another body corporate if—
- (2) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-08-01), a body corporate is to be taken to control another body corporate if—
- (a) it is empowered by or under an enactment to control that body’s activities, or
- (b) it is that body’s holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006.
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-07-31)—
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-08-01)—
- (a) an individual or individuals are to be taken to control a body corporate if the individual or individuals (were the individual or individuals a company) would be that body’s holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006 (meaning of “subsidiary” etc), and
@@ -2751,23 +2751,23 @@
##### 107
The following Table sets out expressions defined or explained for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-07-31)—
The following Table sets out expressions defined or explained for the purposes of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/3/2023-08-01)—
| *Expression* | *Provision* |
| --- | --- |
| alcohol wholesaling provisions | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/11/2023-07-31) |
| approved wholesaler | [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/7/2023-07-31) |
| authorised retail sale | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/5/2023-07-31) |
| controlled activity | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/8/2023-07-31) |
| enactment | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(10)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/10/2023-07-31) |
| group (in relation to bodies corporate) | [section 106](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/106/1/2023-07-31) |
| group sale | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/6/2023-07-31) |
| incidental sale | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/4/2023-07-31) |
| Isle of Man person and Isle of Man approved wholesaler | [section 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/a/2023-07-31) and [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/b/2023-07-31) |
| relevant alcoholic products (for the purposes of [sections 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-07-31) and [104](https://www.legislation.gov.uk/ukpga/2023/30/section/104/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/104/4/2023-07-31)) | [section 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/c/2023-07-31) |
| sale of controlled alcoholic products | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2/2023-07-31) |
| UK person | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/9/2023-07-31) |
| wholesale | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/3/2023-07-31) |
| alcohol wholesaling provisions | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/11/2023-08-01) |
| approved wholesaler | [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/7/2023-08-01) |
| authorised retail sale | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/5/2023-08-01) |
| controlled activity | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/8/2023-08-01) |
| enactment | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(10)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/10/2023-08-01) |
| group (in relation to bodies corporate) | [section 106](https://www.legislation.gov.uk/ukpga/2023/30/section/106/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/106/1/2023-08-01) |
| group sale | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/6/2023-08-01) |
| incidental sale | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/4/2023-08-01) |
| Isle of Man person and Isle of Man approved wholesaler | [section 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/a/2023-08-01) and [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/b/2023-08-01) |
| relevant alcoholic products (for the purposes of [sections 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-08-01) and [104](https://www.legislation.gov.uk/ukpga/2023/30/section/104/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/104/4/2023-08-01)) | [section 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2/c/2023-08-01) |
| sale of controlled alcoholic products | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2/2023-08-01) |
| UK person | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/9/2023-08-01) |
| wholesale | [section 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/98/3/2023-08-01) |
### Chapter 8 — Supplementary
@@ -2775,7 +2775,7 @@
##### 108
[Schedule 11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/11/2023-07-31) makes provision about reviews and appeals.
[Schedule 11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/11/2023-08-01) makes provision about reviews and appeals.
#### Forfeiture: supplementary provision
@@ -2802,15 +2802,15 @@
##### 111
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/111/2023-07-31) applies where drawback of alcohol duty is allowable, under regulations made under section 60A of CEMA 1979 (power to make regulations about stores) or section 2 of F(No. 2)A 1992 (power to provide for drawback of excise duty), to a person who produces alcoholic products in accordance with an approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) (“the producer”).
- (2) Subject to the conditions (if any) that the Commissioners impose, drawback of alcohol duty may be set against any amount to which the producer is chargeable in respect of alcohol duty (and any reference in CEMA 1979 to drawback payable is to be construed in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/111/2023-07-31)).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/111/2023-08-01) applies where drawback of alcohol duty is allowable, under regulations made under section 60A of CEMA 1979 (power to make regulations about stores) or section 2 of F(No. 2)A 1992 (power to provide for drawback of excise duty), to a person who produces alcoholic products in accordance with an approval under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) (“the producer”).
- (2) Subject to the conditions (if any) that the Commissioners impose, drawback of alcohol duty may be set against any amount to which the producer is chargeable in respect of alcohol duty (and any reference in CEMA 1979 to drawback payable is to be construed in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/111/2023-08-01)).
#### Duty stamps
##### 112
[Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) makes provision about duty stamps.
[Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) makes provision about duty stamps.
### Chapter 9 — repeals, further amendments and transitional provisions
@@ -2832,7 +2832,7 @@
##### 114
[Schedule 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/2023-07-31) makes minor and consequential amendments relating to [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31).
[Schedule 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/2023-08-01) makes minor and consequential amendments relating to [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01).
### Transitional provision
@@ -2842,7 +2842,7 @@
- (1) Wine of an alcoholic strength of at least 11.5% but not exceeding 14.5% is treated, for the purposes of the charge to alcohol duty, as if it were of an alcoholic strength of 12.5%.
- (2) This section expires at the end of the period of 18 months beginning with the day on which [section 48](https://www.legislation.gov.uk/ukpga/2023/30/section/48/2023-07-31) (rates) comes into force.
- (2) This section expires at the end of the period of 18 months beginning with the day on which [section 48](https://www.legislation.gov.uk/ukpga/2023/30/section/48/2023-08-01) (rates) comes into force.
#### Temporary provision: cider
@@ -2850,7 +2850,7 @@
Alcohol duty is not charged on cider which is produced—
- (a) at a time before [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) (approvals) comes into force, and
- (a) at a time before [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) (approvals) comes into force, and
- (b) by a person who, at that time, is exempt from the requirement to register under section 62 of ALDA 1979 by reason of an order made (or having effect as if made) under subsection (3) of that section.
@@ -2860,23 +2860,23 @@
##### 117
- (1) The following Table sets out expressions defined or explained in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) for general purposes—
- (1) The following Table sets out expressions defined or explained in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) for general purposes—
| *Expression* | *Provision* |
| --- | --- |
| alcohol | [section 45](https://www.legislation.gov.uk/ukpga/2023/30/section/45/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/45/5/2023-07-31) |
| alcoholic products | [section 44](https://www.legislation.gov.uk/ukpga/2023/30/section/44/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/44/1/2023-07-31) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/44/2/2023-07-31) |
| alcoholic strength | [section 45](https://www.legislation.gov.uk/ukpga/2023/30/section/45/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/45/1/2023-07-31) |
| beer | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-07-31), paragraph 3 |
| cider | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-07-31), [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/5/2023-07-31) |
| denatured alcohol | [section 90](https://www.legislation.gov.uk/ukpga/2023/30/section/90/2023-07-31) |
| excise duty point | [section 49](https://www.legislation.gov.uk/ukpga/2023/30/section/49/2023-07-31) |
| other fermented product | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-07-31), [paragraph 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/12/2023-07-31) |
| qualifying draught product | [section 51](https://www.legislation.gov.uk/ukpga/2023/30/section/51/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/1/2023-07-31) |
| spirits | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-07-31), [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/1/2023-07-31) |
| wine | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-07-31), [paragraph 11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/11/2023-07-31) |
- (2) [This Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) is to be construed as one with the Customs and Excise Acts 1979.
| alcohol | [section 45](https://www.legislation.gov.uk/ukpga/2023/30/section/45/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/45/5/2023-08-01) |
| alcoholic products | [section 44](https://www.legislation.gov.uk/ukpga/2023/30/section/44/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/44/1/2023-08-01) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/44/2/2023-08-01) |
| alcoholic strength | [section 45](https://www.legislation.gov.uk/ukpga/2023/30/section/45/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/45/1/2023-08-01) |
| beer | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-08-01), paragraph 3 |
| cider | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-08-01), [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/5/2023-08-01) |
| denatured alcohol | [section 90](https://www.legislation.gov.uk/ukpga/2023/30/section/90/2023-08-01) |
| excise duty point | [section 49](https://www.legislation.gov.uk/ukpga/2023/30/section/49/2023-08-01) |
| other fermented product | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-08-01), [paragraph 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/12/2023-08-01) |
| qualifying draught product | [section 51](https://www.legislation.gov.uk/ukpga/2023/30/section/51/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/1/2023-08-01) |
| spirits | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-08-01), [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/1/2023-08-01) |
| wine | [Schedule 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-08-01), [paragraph 11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/11/2023-08-01) |
- (2) [This Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) is to be construed as one with the Customs and Excise Acts 1979.
- (3) Any expression used in this Act or in any instrument made under this Act to which a meaning is given by any other Act included in the Customs and Excise Acts 1979 has, except where the context otherwise requires, the same meaning in this Act or any such instrument as in that Act.
@@ -2886,9 +2886,9 @@
- (1) The Commissioners may by regulations make provision supplementing provision made in relation to alcohol duty by or under this Part or any other enactment.
- (2) A power to make regulations under any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) may be exercised so as to make different provision for different purposes or areas.
- (3) A power to make regulations under any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) includes power to make—
- (2) A power to make regulations under any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) may be exercised so as to make different provision for different purposes or areas.
- (3) A power to make regulations under any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) includes power to make—
- (a) provision which applies generally or only for specified cases or purposes;
@@ -2898,71 +2898,71 @@
- (d) consequential, supplementary, incidental, transitional or saving provision.
- (4) Regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) are to be made by statutory instrument.
- (5) This section does not apply to regulations under [section 120](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2023-07-31).
- (4) Regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) are to be made by statutory instrument.
- (5) This section does not apply to regulations under [section 120](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2023-08-01).
#### Regulations: procedure
##### 119
- (1) A statutory instrument containing any regulations made under [section 46](https://www.legislation.gov.uk/ukpga/2023/30/section/46/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/46/a/2023-07-31) or section [51](https://www.legislation.gov.uk/ukpga/2023/30/section/51/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/5/2023-07-31) must be laid before the House of Commons, and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period.
- (2) The fact that a statutory instrument ceases to have effect as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-07-31) does not affect—
- (1) A statutory instrument containing any regulations made under [section 46](https://www.legislation.gov.uk/ukpga/2023/30/section/46/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/46/a/2023-08-01) or section [51](https://www.legislation.gov.uk/ukpga/2023/30/section/51/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/51/5/2023-08-01) must be laid before the House of Commons, and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period.
- (2) The fact that a statutory instrument ceases to have effect as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-08-01) does not affect—
- (a) anything previously done under the instrument, or
- (b) the making of a new statutory instrument.
- (3) In calculating the period for the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-07-31), no account is to be taken of any time—
- (3) In calculating the period for the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-08-01), no account is to be taken of any time—
- (a) during which Parliament is dissolved or prorogued, or
- (b) during which the House of Commons is adjourned for more than 4 days.
- (4) A statutory instrument containing (whether alone or with other provision) any regulations made under [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/2/2023-07-31) of [Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.
- (5) A statutory instrument containing regulations made under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31), other than regulations in respect of which [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-07-31) or [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/4/2023-07-31) applies, is subject to annulment in pursuance of a resolution of the House of Commons.
- (6) A statutory instrument containing regulations to which [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-07-31) applies may also include regulations relating to alcohol duty under any other provision of the customs and excise Acts (including any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31)) if the Parliamentary procedure applicable to a statutory instrument containing regulations under the other provision does not require House of Commons approval.
- (7) Where regulations are included as mentioned in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/6/2023-07-31), the procedure applicable to the statutory instrument is the procedure mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-07-31) (and not the procedure mentioned in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/6/2023-07-31)).
- (4) A statutory instrument containing (whether alone or with other provision) any regulations made under [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/2/2023-08-01) of [Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.
- (5) A statutory instrument containing regulations made under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01), other than regulations in respect of which [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-08-01) or [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/4/2023-08-01) applies, is subject to annulment in pursuance of a resolution of the House of Commons.
- (6) A statutory instrument containing regulations to which [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-08-01) applies may also include regulations relating to alcohol duty under any other provision of the customs and excise Acts (including any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01)) if the Parliamentary procedure applicable to a statutory instrument containing regulations under the other provision does not require House of Commons approval.
- (7) Where regulations are included as mentioned in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/6/2023-08-01), the procedure applicable to the statutory instrument is the procedure mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-08-01) (and not the procedure mentioned in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/6/2023-08-01)).
- (8) If—
- (a) a statutory instrument contains regulations under any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) (other than regulations in respect of which [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-07-31) or [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/4/2023-07-31) applies) and regulations relating to alcohol duty under any other provision of the customs and excise Acts, and
- (a) a statutory instrument contains regulations under any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) (other than regulations in respect of which [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/1/2023-08-01) or [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/4/2023-08-01) applies) and regulations relating to alcohol duty under any other provision of the customs and excise Acts, and
- (b) the Parliamentary procedure applicable to a statutory instrument containing provision under the other provision does not require House of Commons approval,
the only Parliamentary procedure applicable to a statutory instrument mentioned in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/8/a/2023-07-31) is that given by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/119/2023-07-31).
- (9) For the purposes of [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/6/2023-07-31) and [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/8/2023-07-31) the Parliamentary procedure applicable to a statutory instrument requires House of Commons approval if, as a condition of its continuing to have effect or its making, the House of Commons has to approve the statutory instrument or a draft of it.
- (10) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/119/2023-07-31) does not apply to regulations under [section 120](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2023-07-31).
the only Parliamentary procedure applicable to a statutory instrument mentioned in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/8/a/2023-08-01) is that given by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/119/2023-08-01).
- (9) For the purposes of [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/6/2023-08-01) and [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/119/8/2023-08-01) the Parliamentary procedure applicable to a statutory instrument requires House of Commons approval if, as a condition of its continuing to have effect or its making, the House of Commons has to approve the statutory instrument or a draft of it.
- (10) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/119/2023-08-01) does not apply to regulations under [section 120](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2023-08-01).
#### Commencement
##### 120
- (1) The following provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) come into force on the day on which this Act is passed—
- (a) [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31), and
- (b) any other provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) so far as it confers a power to make regulations.
- (2) The other provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) (so far as not brought into force by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/120/1/2023-07-31)) come into force on such day or days as the Commissioners may by regulations appoint.
- (1) The following provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) come into force on the day on which this Act is passed—
- (a) [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01), and
- (b) any other provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) so far as it confers a power to make regulations.
- (2) The other provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) (so far as not brought into force by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/120/1/2023-08-01)) come into force on such day or days as the Commissioners may by regulations appoint.
- (3) Different days may be appointed for different purposes or different areas.
- (4) The Commissioners may by regulations make consequential, supplementary, incidental, transitional or saving provision in connection with the coming into force of any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31).
- (5) The power to make regulations under [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/120/4/2023-07-31)—
- (4) The Commissioners may by regulations make consequential, supplementary, incidental, transitional or saving provision in connection with the coming into force of any provision of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01).
- (5) The power to make regulations under [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/120/4/2023-08-01)—
- (a) may be exercised so as to make different provision for different purposes or areas, and
- (b) includes power to make provision of a kind described in [section 118](https://www.legislation.gov.uk/ukpga/2023/30/section/118/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/118/3/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/118/3/a/2023-07-31) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/118/3/c/2023-07-31).
- (6) Regulations under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2023-07-31) are to be made by statutory instrument.
- (b) includes power to make provision of a kind described in [section 118](https://www.legislation.gov.uk/ukpga/2023/30/section/118/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/118/3/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/118/3/a/2023-08-01) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/118/3/c/2023-08-01).
- (6) Regulations under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2023-08-01) are to be made by statutory instrument.
## Part 3 — Multinational top-up tax
@@ -2972,15 +2972,15 @@
##### 121
- (1) The purpose of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) is to implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules).
- (2) For that purpose, [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) makes provision for a tax payable in respect of members of multinational groups who are located in territories (outside the United Kingdom) where their rate of tax (as determined in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)) is less than 15%.
- (1) The purpose of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) is to implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules).
- (2) For that purpose, [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) makes provision for a tax payable in respect of members of multinational groups who are located in territories (outside the United Kingdom) where their rate of tax (as determined in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)) is less than 15%.
- (3) The tax is to be known as “*multinational top-up tax*”.
- (4) [Sections 122](https://www.legislation.gov.uk/ukpga/2023/30/section/122/2023-07-31) to [124](https://www.legislation.gov.uk/ukpga/2023/30/section/124/2023-07-31) set out the charge to multinational top-up tax and describe how it is to be calculated.
- (5) [Chapter 2](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/2/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)—
- (4) [Sections 122](https://www.legislation.gov.uk/ukpga/2023/30/section/122/2023-08-01) to [124](https://www.legislation.gov.uk/ukpga/2023/30/section/124/2023-08-01) set out the charge to multinational top-up tax and describe how it is to be calculated.
- (5) [Chapter 2](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/2/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)—
- (a) sets out the meaning of “multinational group”;
@@ -2988,7 +2988,7 @@
- (c) identifies the ultimate parent of such a group;
- (d) limits the application of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) to multinational groups with an annual revenue of at least 750 million euros and that have at least one member in the United Kingdom (such a group is referred to in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) as “qualifying”);
- (d) limits the application of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) to multinational groups with an annual revenue of at least 750 million euros and that have at least one member in the United Kingdom (such a group is referred to in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) as “qualifying”);
- (e) sets out how to determine which members of a multinational group (“responsible members”) are responsible for paying the tax and which members they are responsible for.
@@ -3026,21 +3026,21 @@
- (b) that the person is resident in the United Kingdom for the purposes of that tax.
- (4) Where a partnership that is not a body corporate is chargeable to multinational top-up tax as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/122/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/122/1/a/2023-07-31)—
- (4) Where a partnership that is not a body corporate is chargeable to multinational top-up tax as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/122/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/122/1/a/2023-08-01)—
- (a) the responsible partners are liable to pay the tax, and
- (b) the liability of the responsible partners to do so is joint and several.
- (5) The references in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/122/4/2023-07-31) to “the responsible partners” are to each member of the partnership at any time during the accounting period who—
- (5) The references in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/122/4/2023-08-01) to “the responsible partners” are to each member of the partnership at any time during the accounting period who—
- (a) in the case of a partner that is an entity, is located in the United Kingdom, or
- (b) in the case of a partner that is an individual, is tax resident in the United Kingdom.
- (6) A partnership is to be regarded for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/122/2023-07-31) as continuing to be the same partnership regardless of a change in membership, provided that a person who was a member before the change remains a member after the change.
- (7) Where more than one person is chargeable to tax in relation to the same responsible member of a qualifying multinational group as a result of the application of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/122/2/2023-07-31), each of those persons is jointly and severally liable to multinational top-up tax.
- (6) A partnership is to be regarded for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/122/2023-08-01) as continuing to be the same partnership regardless of a change in membership, provided that a person who was a member before the change remains a member after the change.
- (7) Where more than one person is chargeable to tax in relation to the same responsible member of a qualifying multinational group as a result of the application of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/122/2/2023-08-01), each of those persons is jointly and severally liable to multinational top-up tax.
#### Amount charged by reference to “top-up amounts”
@@ -3066,35 +3066,35 @@
- (b) that member has profits for that period.
- (2) [Chapter 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/3/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) sets out how to determine the effective tax rate of the members of a multinational group in a territory by reference to the profits of, and the taxes payable by, those members in that territory.
- (3) [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) sets out how to calculate the profits of members of a multinational group.
- (4) [Chapter 5](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/5/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) sets out—
- (a) which taxes (referred to in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) as “covered taxes”) are to be considered in determining the effective tax rate of those members, and
- (2) [Chapter 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/3/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) sets out how to determine the effective tax rate of the members of a multinational group in a territory by reference to the profits of, and the taxes payable by, those members in that territory.
- (3) [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) sets out how to calculate the profits of members of a multinational group.
- (4) [Chapter 5](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/5/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) sets out—
- (a) which taxes (referred to in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) as “covered taxes”) are to be considered in determining the effective tax rate of those members, and
- (b) how to determine the amount of covered taxes allocated to those members.
- (5) [Chapter 6](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/6/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) sets out how to use the effective tax rate and profits of the members of a multinational group to determine the top-up amounts of those members.
- (6) [Chapter 7](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/7/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) sets out how to attribute those top-up amounts to a responsible member of the group.
- (7) [Chapter 8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) contains provisions about—
- (5) [Chapter 6](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/6/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) sets out how to use the effective tax rate and profits of the members of a multinational group to determine the top-up amounts of those members.
- (6) [Chapter 7](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/7/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) sets out how to attribute those top-up amounts to a responsible member of the group.
- (7) [Chapter 8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) contains provisions about—
- (a) additional top-up amounts, and
- (b) further adjustments that may need to be made (including provision about adjustments for restructuring of multinational groups).
- (8) [Chapter 9](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/9/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) sets out special provision for investment entities, joint venture groups and minority owned members (including provision that applies to those entities instead of provision in the previous Chapters).
- (9) [Chapter 10](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/10/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) contains definitions and other provisions relevant to the calculations and other determinations to be made for the purposes of multinational top-up tax and [Chapter 11](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/11/2023-07-31) contains general provision.
- (8) [Chapter 9](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/9/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) sets out special provision for investment entities, joint venture groups and minority owned members (including provision that applies to those entities instead of provision in the previous Chapters).
- (9) [Chapter 10](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/10/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) contains definitions and other provisions relevant to the calculations and other determinations to be made for the purposes of multinational top-up tax and [Chapter 11](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/11/2023-08-01) contains general provision.
#### Administration of multinational top-up tax
##### 125
[Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) makes provision for—
[Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) makes provision for—
- (a) information returns which must be made in respect of multinational groups,
@@ -3112,7 +3112,7 @@
##### 126
- (1) References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) to a multinational group are to a consolidated group where at least one of the members of that group is not located in the same territory as the others.
- (1) References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) to a multinational group are to a consolidated group where at least one of the members of that group is not located in the same territory as the others.
- (2) A “*consolidated group*” means the following entities (which are its members)—
@@ -3132,15 +3132,15 @@
##### 127
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), excluded entities are to be treated as not being members of a multinational group.
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/1/2023-07-31) does not apply for the purposes of the following provisions—
- (a) [section 126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-07-31) (and accordingly an excluded entity that is the ultimate parent of multinational group remains the ultimate parent of that group),
- (b) [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-07-31), and
- (c) [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31) (determining whether a multinational group is qualifying).
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), excluded entities are to be treated as not being members of a multinational group.
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/1/2023-08-01) does not apply for the purposes of the following provisions—
- (a) [section 126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-08-01) (and accordingly an excluded entity that is the ultimate parent of multinational group remains the ultimate parent of that group),
- (b) [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-08-01), and
- (c) [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01) (determining whether a multinational group is qualifying).
- (3) The following are excluded entities—
@@ -3170,11 +3170,11 @@
- (a) it is 100% owned by one or more entities that are non-profit organisations,
- (b) the revenue (see [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/5/2023-07-31)) of the multinational group of which the entity is a member would not exceed the threshold set out in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-07-31) for that period if the revenue of every member that is a non-profit organisation, a qualifying service entity or a qualifying exempt income entity were ignored,
- (c) the revenue of the group for that period that is ignored for the purposes of [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/5/b/2023-07-31) is less than 25% of the total revenue of the group, and
- (d) no election under [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-07-31) is in force in relation to the entity.
- (b) the revenue (see [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/5/2023-08-01)) of the multinational group of which the entity is a member would not exceed the threshold set out in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-08-01) for that period if the revenue of every member that is a non-profit organisation, a qualifying service entity or a qualifying exempt income entity were ignored,
- (c) the revenue of the group for that period that is ignored for the purposes of [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/5/b/2023-08-01) is less than 25% of the total revenue of the group, and
- (d) no election under [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-08-01) is in force in relation to the entity.
- (6) An entity is a qualifying service entity if—
@@ -3184,9 +3184,9 @@
- (i) the entity only carries out activities that are ancillary to the activities of those owners, or
- (ii) all, or almost all, of its activities, ignoring activities falling within [sub-paragraph (i)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/b/i/2023-07-31), consist of the holding of assets or the investment of funds for the benefit of those owners, and
- (c) no election under [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-07-31) is in force in relation to the entity.
- (ii) all, or almost all, of its activities, ignoring activities falling within [sub-paragraph (i)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/b/i/2023-08-01), consist of the holding of assets or the investment of funds for the benefit of those owners, and
- (c) no election under [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-08-01) is in force in relation to the entity.
- (7) An entity is a qualifying exempt income entity if—
@@ -3194,23 +3194,23 @@
- (b) almost all of the entity’s income is excluded dividends or excluded equity gains (or a mixture of both), and
- (c) no election under [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-07-31) is in force in relation to the entity.
- (8) The filing member of a multinational group (see [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)) may make an election that a member of that group that would otherwise be an excluded entity as a result of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/5/2023-07-31), [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-07-31) or [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-07-31) is not to be an excluded entity.
- (9) [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) makes provision about elections under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31).
- (10) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of that Schedule (long term elections) applies to an election under [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-07-31).
- (11) For the purposes of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/5/2023-07-31), the reference to an entity being 100% owned by one or more entities that are non-profit organisations is to those entities together having that percentage of ownership interest in that entity.
- (12) For the purposes of [subsections (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-07-31) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-07-31)—
- (a) despite [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/3/2023-07-31) (permanent establishments treated as distinct from main entity), the conditions in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/b/2023-07-31) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/b/2023-07-31) are only met in relation to a permanent establishment or a main entity if the conditions are met by the main entity and all of its permanent establishments taken together as if they were a single entity;
- (c) no election under [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-08-01) is in force in relation to the entity.
- (8) The filing member of a multinational group (see [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)) may make an election that a member of that group that would otherwise be an excluded entity as a result of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/5/2023-08-01), [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-08-01) or [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-08-01) is not to be an excluded entity.
- (9) [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) makes provision about elections under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01).
- (10) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of that Schedule (long term elections) applies to an election under [subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-08-01).
- (11) For the purposes of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/5/2023-08-01), the reference to an entity being 100% owned by one or more entities that are non-profit organisations is to those entities together having that percentage of ownership interest in that entity.
- (12) For the purposes of [subsections (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-08-01) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-08-01)—
- (a) despite [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/3/2023-08-01) (permanent establishments treated as distinct from main entity), the conditions in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/b/2023-08-01) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/b/2023-08-01) are only met in relation to a permanent establishment or a main entity if the conditions are met by the main entity and all of its permanent establishments taken together as if they were a single entity;
- (b) an excluded entity is “qualifying” if it is not a pensions service entity, and
- (c) references to an entity being 95% or 85% owned by qualifying excluded entities are to those entities together having at least that percentage of the ownership interests in that entity (see [section 245](https://www.legislation.gov.uk/ukpga/2023/30/section/245/2023-07-31) for how to calculate ownership interests in excluded entities).
- (c) references to an entity being 95% or 85% owned by qualifying excluded entities are to those entities together having at least that percentage of the ownership interests in that entity (see [section 245](https://www.legislation.gov.uk/ukpga/2023/30/section/245/2023-08-01) for how to calculate ownership interests in excluded entities).
### Responsible members
@@ -3222,7 +3222,7 @@
- (2) An ultimate parent that is a responsible member of a multinational group is responsible for all of its members that are not located in the territory it is located in.
- (3) An intermediate parent member of a multinational group (see [section 237](https://www.legislation.gov.uk/ukpga/2023/30/section/237/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/237/2/2023-07-31)) that is located in a Pillar Two territory is a responsible member of that group if it is subject to Pillar Two IIR tax and—
- (3) An intermediate parent member of a multinational group (see [section 237](https://www.legislation.gov.uk/ukpga/2023/30/section/237/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/237/2/2023-08-01)) that is located in a Pillar Two territory is a responsible member of that group if it is subject to Pillar Two IIR tax and—
- (a) no intermediate parent member of that group that is subject to Pillar Two IIR tax has a controlling interest in it,
@@ -3232,7 +3232,7 @@
- (4) Such an intermediate parent member is responsible for all of the members of the group it has an ownership interest in that are not located in the territory it is located in.
- (5) A partially-owned parent member of a multinational group (see [section 237](https://www.legislation.gov.uk/ukpga/2023/30/section/237/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/237/1/2023-07-31)) that is located in a Pillar Two territory is a responsible member if it is subject to Pillar Two IIR tax and—
- (5) A partially-owned parent member of a multinational group (see [section 237](https://www.legislation.gov.uk/ukpga/2023/30/section/237/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/237/1/2023-08-01)) that is located in a Pillar Two territory is a responsible member if it is subject to Pillar Two IIR tax and—
- (a) it is not wholly owned by another partially-owned parent member of that group that is subject to Pillar Two IIR tax, and
@@ -3240,7 +3240,7 @@
- (6) Such a partially owned parent member is responsible for all of the members of the group it has an ownership interest in that are not located in the same territory it is located in.
- (7) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) an entity is subject to Pillar Two IIR tax if—
- (7) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) an entity is subject to Pillar Two IIR tax if—
- (a) the entity is located in the United Kingdom and is not an excluded entity, or
@@ -3248,7 +3248,7 @@
- (i) is located in another Pillar Two territory in which a tax equivalent to multinational top-up tax is in force, and
- (ii) is not excluded from the application of that tax as a result of provision equivalent to [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-07-31).
- (ii) is not excluded from the application of that tax as a result of provision equivalent to [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-08-01).
### Qualifying multinational groups
@@ -3256,27 +3256,27 @@
##### 129
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), a multinational group is “qualifying” in an accounting period if conditions A and B are met.
- (2) Condition A is that the group’s members have revenue that exceeds the threshold set out in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-07-31) in at least 2 accounting periods of the previous 4 accounting periods.
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), a multinational group is “qualifying” in an accounting period if conditions A and B are met.
- (2) Condition A is that the group’s members have revenue that exceeds the threshold set out in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-08-01) in at least 2 accounting periods of the previous 4 accounting periods.
- (3) Condition B is that at least one of the group’s members is located in the United Kingdom.
- (4) The threshold for an accounting period is the amount given by multiplying 750 million euros by the amount given by dividing the number of days in the accounting period by 365.
- (5) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31), and [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/5/2023-07-31), the revenue of the members of a multinational group for a period is to be determined by reference to the consolidated financial statements of the ultimate parent for that period.
- (5) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01), and [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/5/2023-08-01), the revenue of the members of a multinational group for a period is to be determined by reference to the consolidated financial statements of the ultimate parent for that period.
#### Change in composition of multinational group
##### 130
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/130/2023-07-31) applies for the purpose of determining whether condition A in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2/2023-07-31) is met by a multinational group in an accounting period (“*the qualifying period*”) where its composition has changed—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/130/2023-08-01) applies for the purpose of determining whether condition A in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2/2023-08-01) is met by a multinational group in an accounting period (“*the qualifying period*”) where its composition has changed—
- (a) in that period, or
- (b) during the previous 4 accounting periods (“the testing period”).
- (2) Reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/130/1/2023-07-31) to a change in the composition of a multinational group includes its formation as a result of the acquisition by one entity of ownership interests in another.
- (2) Reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/130/1/2023-08-01) to a change in the composition of a multinational group includes its formation as a result of the acquisition by one entity of ownership interests in another.
- (3) Where a member of the multinational group was not a member of any consolidated group in one or more of the accounting periods in the testing period—
@@ -3284,9 +3284,9 @@
- (b) those revenues are to be treated as forming part of the revenues of the multinational group in those periods (whether or not the group existed in those periods).
- (4) Where a multinational group is the result of a merger of two or more consolidated groups in the qualifying period or the testing period, for each accounting period of those periods in which they were separate groups, add together the revenues of each consolidated group for that period (determined by reference to the consolidated financial statements of the ultimate parent of each group and if necessary, apportioned on a just and reasonable basis to the accounting period of the merged group) to determine whether the threshold in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-07-31) is met for that period.
- (5) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/130/2023-07-31) “*merger*” means any arrangement that results in two or more consolidated groups becoming a single consolidated group.
- (4) Where a multinational group is the result of a merger of two or more consolidated groups in the qualifying period or the testing period, for each accounting period of those periods in which they were separate groups, add together the revenues of each consolidated group for that period (determined by reference to the consolidated financial statements of the ultimate parent of each group and if necessary, apportioned on a just and reasonable basis to the accounting period of the merged group) to determine whether the threshold in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-08-01) is met for that period.
- (5) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/130/2023-08-01) “*merger*” means any arrangement that results in two or more consolidated groups becoming a single consolidated group.
#### Whether de-merged groups meet the revenue threshold
@@ -3295,12 +3295,12 @@
- (1) Where a multinational group is the result of a qualifying de-merger (“a de-merged group”), section 129 has effect in relation to that group for its first accounting period that ends after the de-merger, and in the 3 accounting periods that follow it as if for subsection (2) there were substituted—
> (2) A de-merged group meets condition A if—
> (a) in its first accounting period that ends after the de-merger, if its members have revenue for that period that exceeds the threshold set out in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-07-31), and
> (a) in its first accounting period that ends after the de-merger, if its members have revenue for that period that exceeds the threshold set out in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-08-01), and
> (b) in any of the second to fourth accounting periods ending after the de-merger, if its members have revenue that exceeds the threshold set out in that section in any two of the following periods—
> (i) that period;
> (ii) any of the accounting periods that precede that period and end after the de-merger.
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2023-07-31) “*qualifying de-merger*” means the separation of members of a multinational group that meets condition A in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2/2023-07-31) into two or more consolidated groups, such that those members cease to all be consolidated by the same ultimate parent.
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2023-08-01) “*qualifying de-merger*” means the separation of members of a multinational group that meets condition A in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2/2023-08-01) into two or more consolidated groups, such that those members cease to all be consolidated by the same ultimate parent.
### Chapter 3 — Effective tax rate of members of a multinational group in a territory
@@ -3310,7 +3310,7 @@
- (1) The effective tax rate of the standard members of a multinational group in a territory for an accounting period is determined as follows—
- *Step 1* Determine, in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-07-31), the adjusted profits for that period of each standard member of that group in that territory.
- *Step 1* Determine, in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-08-01), the adjusted profits for that period of each standard member of that group in that territory.
- *Step 2* Subtract the sum of the losses of those members of the group that made a loss in that period from the sum of the profits of those members of the group that made a profit in that period.
@@ -3326,15 +3326,15 @@
- (2) The combined covered tax balance for standard members of a multinational group in a territory is—
- (a) where those members only have positive covered tax balances (see [Chapter 5](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/5/2023-07-31)), the sum of those balances,
- (a) where those members only have positive covered tax balances (see [Chapter 5](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/5/2023-08-01)), the sum of those balances,
- (b) where those members only have negative covered tax balances (see that Chapter), the sum of those balances expressed as a negative number, or
- (c) where those members have a mixture of positive covered tax balances and negative covered tax balances, the amount (which may be positive or negative) given by subtracting the sum of those negative covered tax balances from the sum of those positive covered tax balances.
[Section 164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-07-31) contains provision about the determination of covered tax balances of members of multinational groups.
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)—
[Section 164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-08-01) contains provision about the determination of covered tax balances of members of multinational groups.
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)—
- (a) a member of a multinational group is a “standard member” if it is not—
@@ -3352,23 +3352,23 @@
##### 133
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), references to the adjusted profits of a member of a multinational group are to the underlying profits of that member adjusted in accordance with this Chapter and (to the extent applicable) [Chapter 8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-07-31).
- (2) [Sections 134](https://www.legislation.gov.uk/ukpga/2023/30/section/134/2023-07-31) to [137](https://www.legislation.gov.uk/ukpga/2023/30/section/137/2023-07-31) set out how to determine the underlying profits.
- (3) [Sections 138](https://www.legislation.gov.uk/ukpga/2023/30/section/138/2023-07-31) to [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-07-31) set out various adjustments that may need to be made to those profits.
- (4) [Sections 159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-07-31) and [160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-07-31) set out adjustments to be made in relation to members that are permanent establishments.
- (5) [Sections 161](https://www.legislation.gov.uk/ukpga/2023/30/section/161/2023-07-31) to [164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-07-31) make provision for elections for certain matters to be calculated in an alternative manner.
- (6) Sections [167](https://www.legislation.gov.uk/ukpga/2023/30/section/167/2023-07-31) to [171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31) set out adjustments in relation to transparent and hybrid entities and entities subject to a “qualifying dividend regime”.
- (7) Other provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) may require further adjustments of underlying profits, including provision in—
- (a) [Chapter 9](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/9/2023-07-31) (investment entities), and
- (b) [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31) (transitional provision).
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), references to the adjusted profits of a member of a multinational group are to the underlying profits of that member adjusted in accordance with this Chapter and (to the extent applicable) [Chapter 8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-08-01).
- (2) [Sections 134](https://www.legislation.gov.uk/ukpga/2023/30/section/134/2023-08-01) to [137](https://www.legislation.gov.uk/ukpga/2023/30/section/137/2023-08-01) set out how to determine the underlying profits.
- (3) [Sections 138](https://www.legislation.gov.uk/ukpga/2023/30/section/138/2023-08-01) to [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-08-01) set out various adjustments that may need to be made to those profits.
- (4) [Sections 159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-08-01) and [160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-08-01) set out adjustments to be made in relation to members that are permanent establishments.
- (5) [Sections 161](https://www.legislation.gov.uk/ukpga/2023/30/section/161/2023-08-01) to [164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-08-01) make provision for elections for certain matters to be calculated in an alternative manner.
- (6) Sections [167](https://www.legislation.gov.uk/ukpga/2023/30/section/167/2023-08-01) to [171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01) set out adjustments in relation to transparent and hybrid entities and entities subject to a “qualifying dividend regime”.
- (7) Other provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) may require further adjustments of underlying profits, including provision in—
- (a) [Chapter 9](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/9/2023-08-01) (investment entities), and
- (b) [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01) (transitional provision).
#### Underlying profits as determined for statements of ultimate parent
@@ -3376,7 +3376,7 @@
- (1) The normal rule is that the underlying profits of a member of a multinational group, other than a member that is a permanent establishment, are the member’s profits as they would be determined for that member in preparing consolidated financial statements for the ultimate parent.
- (2) But those profits may instead be determined on the basis of an alternative accounting standard, and information in the separate financial accounts of the member, if all of the conditions in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/3/2023-07-31) are met.
- (2) But those profits may instead be determined on the basis of an alternative accounting standard, and information in the separate financial accounts of the member, if all of the conditions in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/3/2023-08-01) are met.
- (3) Those conditions are that—
@@ -3388,21 +3388,21 @@
- (d) the information in those accounts is reliable.
- (4) Where an alternative accounting standard is used and an amount relevant to the underlying profits of a member of a multinational group is recorded in a currency other than the currency used for the consolidated financial statements of the ultimate parent, that amount is to be converted to that currency for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31).
- (5) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/6/2023-07-31) applies where the application of a particular policy of the alternative accounting standard in the determination of the profits of the member results in a significant accounting standard difference that would not arise if the accounting standard of the ultimate parent had been applied.
- (4) Where an alternative accounting standard is used and an amount relevant to the underlying profits of a member of a multinational group is recorded in a currency other than the currency used for the consolidated financial statements of the ultimate parent, that amount is to be converted to that currency for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01).
- (5) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/6/2023-08-01) applies where the application of a particular policy of the alternative accounting standard in the determination of the profits of the member results in a significant accounting standard difference that would not arise if the accounting standard of the ultimate parent had been applied.
- (6) The underlying profits are to be adjusted to eliminate that difference (as if the accounting standard of the ultimate parent had been applied).
- (7) Information in the financial accounts of the member is “reliable” if an auditor applying the generally accepted auditing standards of a relevant territory would reasonably conclude the member has in place such processes relating to their preparation as are likely to make the information in the financial accounts a fair and accurate description of the income, expenses, assets and liabilities of that member.
- (8) For the purposes of [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/7/2023-07-31), the following are relevant territories—
- (8) For the purposes of [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/7/2023-08-01), the following are relevant territories—
- (a) the territory in which the member is located;
- (b) the territory in which the ultimate parent is located;
- (c) if the member is a flow-through entity (see [section 168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2/2023-07-31)) that is a stateless entity, the territory in which it was created.
- (c) if the member is a flow-through entity (see [section 168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2/2023-08-01)) that is a stateless entity, the territory in which it was created.
- (9) For the purposes of this section, reference to a “significant accounting standard difference” is to a difference of more than 1 million euros between the treatment of an amount in the financial accounts of a member of a multinational group and the consolidated financial statements of the ultimate parent that is not eliminated over time.
@@ -3414,11 +3414,11 @@
- (a) if the member has separate financial accounts, as reflected in those accounts, and
- (b) if not, as reflected in the underlying profits accounts of the main entity, attributed between the permanent establishment and the main entity in accordance with [section 159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-07-31).
- (2) If the member is a permanent establishment falling within [paragraph (d)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/d/2023-07-31) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31) (income of permanent establishment exempt from tax in territory of main entity) the member’s underlying profits are determined only by reference to its relevant income and relevant expenses.
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/135/2/2023-07-31)—
- (b) if not, as reflected in the underlying profits accounts of the main entity, attributed between the permanent establishment and the main entity in accordance with [section 159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-08-01).
- (2) If the member is a permanent establishment falling within [paragraph (d)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/d/2023-08-01) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01) (income of permanent establishment exempt from tax in territory of main entity) the member’s underlying profits are determined only by reference to its relevant income and relevant expenses.
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/135/2/2023-08-01)—
- (a) the relevant income of the member is the income of the member that is exempted from tax in the territory where the main entity is located that is attributable to operations carried out outside the territory the main entity is located in, and
@@ -3426,11 +3426,11 @@
- (4) Profits (as determined in accordance with this Part) of a permanent establishment are not to be taken into account in determining the adjusted profits of the main entity, and vice versa.
- (5) But [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/135/4/2023-07-31)—
- (a) does not apply to profits of a permanent establishment that are excluded from its profits as a result of an adjustment under [section 159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-07-31), and
- (b) is subject to [section 160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-07-31) (attribution of losses between permanent establishment and main entity).
- (5) But [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/135/4/2023-08-01)—
- (a) does not apply to profits of a permanent establishment that are excluded from its profits as a result of an adjustment under [section 159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-08-01), and
- (b) is subject to [section 160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-08-01) (attribution of losses between permanent establishment and main entity).
#### Underlying profits accounts
@@ -3452,19 +3452,19 @@
- (1) The underlying profits of a member of a multinational group for an accounting period are to be adjusted by adding back any debit, and excluding any credit, for tax expense amounts reflected in its those profits.
- (2) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) “*tax expense amount*” means an amount of tax expense (including a deferred tax expense) in respect of—
- (a) a covered tax (whether or not the income to which the tax relates are excluded from adjusted profits for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31));
- (2) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) “*tax expense amount*” means an amount of tax expense (including a deferred tax expense) in respect of—
- (a) a covered tax (whether or not the income to which the tax relates are excluded from adjusted profits for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01));
- (b) multinational top-up tax, or any tax equivalent to multinational top-up tax;
- (c) a qualifying domestic top-up tax (see [section 256](https://www.legislation.gov.uk/ukpga/2023/30/section/256/2023-07-31));
- (d) a qualifying undertaxed profits tax (see [section 257](https://www.legislation.gov.uk/ukpga/2023/30/section/257/2023-07-31));
- (e) taxes accrued by an insurance company in respect of returns to policyholders to the extent that [section 152](https://www.legislation.gov.uk/ukpga/2023/30/section/152/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/152/2/2023-07-31) applies in relation to those taxes;
- (f) a disqualified refundable imputation tax (see [section 253](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2023-07-31)).
- (c) a qualifying domestic top-up tax (see [section 256](https://www.legislation.gov.uk/ukpga/2023/30/section/256/2023-08-01));
- (d) a qualifying undertaxed profits tax (see [section 257](https://www.legislation.gov.uk/ukpga/2023/30/section/257/2023-08-01));
- (e) taxes accrued by an insurance company in respect of returns to policyholders to the extent that [section 152](https://www.legislation.gov.uk/ukpga/2023/30/section/152/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/152/2/2023-08-01) applies in relation to those taxes;
- (f) a disqualified refundable imputation tax (see [section 253](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2023-08-01)).
#### Profits adjusted to be profits before consolidation adjustments to eliminate intragroup transactions
@@ -3472,11 +3472,11 @@
- (1) The underlying profits of a member of a multinational group are to be adjusted so that they include income, expenses, gains and losses arising from transactions between that member and other members of that group.
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/139/1/2023-07-31) is subject to—
- (a) [section 137](https://www.legislation.gov.uk/ukpga/2023/30/section/137/2023-07-31) (amounts outside profit and loss excluded), and
- (b) [section 164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-07-31) (where an election is made under that section to exclude profits from intra-group transactions).
- (2) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/139/1/2023-08-01) is subject to—
- (a) [section 137](https://www.legislation.gov.uk/ukpga/2023/30/section/137/2023-08-01) (amounts outside profit and loss excluded), and
- (b) [section 164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-08-01) (where an election is made under that section to exclude profits from intra-group transactions).
#### Profits adjusted to be profits before certain purchase accounting adjustments
@@ -3496,15 +3496,15 @@
- (2) “*Excluded dividends*” means—
- (a) a dividend or other distribution arising as a result of a qualifying interest in a flow-through entity (see [section 168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-07-31)), or
- (b) any other dividend or other distribution arising as a result of a qualifying interest in an entity, other than a dividend or other distribution falling within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/3/2023-07-31).
- (3) The following fall within [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/141/3/2023-07-31)—
- (a) a dividend or other distribution arising as a result of a qualifying interest in a flow-through entity (see [section 168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-08-01)), or
- (b) any other dividend or other distribution arising as a result of a qualifying interest in an entity, other than a dividend or other distribution falling within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/3/2023-08-01).
- (3) The following fall within [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/141/3/2023-08-01)—
- (a) a dividend or other distribution arising as a result of a qualifying interest that is a short-term portfolio holding;
- (b) a dividend or other distribution arising as a result of a qualifying interest in an investment entity that is subject to an election under [section 214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-07-31) (taxable distribution method election);
- (b) a dividend or other distribution arising as a result of a qualifying interest in an investment entity that is subject to an election under [section 214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-08-01) (taxable distribution method election);
- (c) a dividend or other distribution made by a member of a multinational group if—
@@ -3514,7 +3514,7 @@
- (d) any other dividend or other distribution to the extent it reflects debt rather than a qualifying interest.
- (4) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2/2023-07-31) a qualifying interest in an entity held by a member of a multinational group is a portfolio holding if, on the vesting date of the distribution, the members of that group do not, between them, have qualifying interests that entitle them to 10% or more of the entity’s—
- (4) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2/2023-08-01) a qualifying interest in an entity held by a member of a multinational group is a portfolio holding if, on the vesting date of the distribution, the members of that group do not, between them, have qualifying interests that entitle them to 10% or more of the entity’s—
- (a) profits,
@@ -3532,11 +3532,11 @@
- (b) the day on which the person to whom it arises is entitled to have it made.
- (7) The filing member of a multinational group may elect that all portfolio holdings held by a member of the group specified in the election are to be treated for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2023-07-31) as short-term portfolio holdings.
- (8) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/7/2023-07-31).
- (9) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2023-07-31), and in [section 142](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2023-07-31), “qualifying interest” in an entity means—
- (7) The filing member of a multinational group may elect that all portfolio holdings held by a member of the group specified in the election are to be treated for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2023-08-01) as short-term portfolio holdings.
- (8) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/7/2023-08-01).
- (9) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2023-08-01), and in [section 142](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2023-08-01), “qualifying interest” in an entity means—
- (a) a direct ownership interest in it, or
@@ -3550,13 +3550,13 @@
- (2) “*Excluded equity gain or loss*” means any gain, profit or loss arising from—
- (a) gains and losses from changes in fair value of a qualifying interest or the impairment of such an interest, other than an interest to which [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-07-31) applies,
- (b) profit or loss in respect of a qualifying interest included in underlying profits under the equity method of accounting, other than an interest to which [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-07-31) applies, or
- (c) gains and losses from a disposition of a qualifying interest, other than an interest to which [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-07-31) applies.
- (3) [This subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-07-31) applies to a qualifying interest in an entity if the members of the multinational group do not, at the relevant time, have qualifying interests between them that entitle them to 10% or more of that entity’s—
- (a) gains and losses from changes in fair value of a qualifying interest or the impairment of such an interest, other than an interest to which [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-08-01) applies,
- (b) profit or loss in respect of a qualifying interest included in underlying profits under the equity method of accounting, other than an interest to which [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-08-01) applies, or
- (c) gains and losses from a disposition of a qualifying interest, other than an interest to which [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-08-01) applies.
- (3) [This subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-08-01) applies to a qualifying interest in an entity if the members of the multinational group do not, at the relevant time, have qualifying interests between them that entitle them to 10% or more of that entity’s—
- (a) profits,
@@ -3568,11 +3568,11 @@
- (4) The “*relevant time*” means—
- (a) for the purposes of testing whether [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-07-31) applies to an interest for the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/b/2023-07-31), the end of the accounting period in which the gain, profit or loss arose, and
- (b) for the purposes of testing whether [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-07-31) applies to an interest for the purpose of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/c/2023-07-31), immediately before the disposition.
- (5) See also [section 165](https://www.legislation.gov.uk/ukpga/2023/30/section/165/2023-07-31) which provides for an election to treat certain gains or losses as not being excluded equity gains or losses.
- (a) for the purposes of testing whether [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-08-01) applies to an interest for the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/b/2023-08-01), the end of the accounting period in which the gain, profit or loss arose, and
- (b) for the purposes of testing whether [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/3/2023-08-01) applies to an interest for the purpose of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/c/2023-08-01), immediately before the disposition.
- (5) See also [section 165](https://www.legislation.gov.uk/ukpga/2023/30/section/165/2023-08-01) which provides for an election to treat certain gains or losses as not being excluded equity gains or losses.
#### Included revaluation method gain or loss
@@ -3588,7 +3588,7 @@
- (c) does not subsequently report the gains or losses through the profit and loss account.
- (3) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)—
- (3) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)—
- “*other comprehensive income*”, in relation to a member of a multinational group, means items of income and expense that are recognised, in the underlying profits accounts, outside the profit and loss account;
@@ -3648,7 +3648,7 @@
those profits are to be adjusted to exclude those expenses.
- (2) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/145/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/145/1/a/2023-07-31), a payment is illegal if the making of that payment is, or forms part of conduct which is, an offence under the law of—
- (2) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/145/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/145/1/a/2023-08-01), a payment is illegal if the making of that payment is, or forms part of conduct which is, an offence under the law of—
- (a) the United Kingdom,
@@ -3656,7 +3656,7 @@
- (c) the territory of the ultimate parent.
- (3) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/145/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/145/1/b/2023-07-31), where more than one fine or penalty is accrued in respect of the same conduct, or for continuing conduct, those fines or penalties are to be aggregated.
- (3) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/145/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/145/1/b/2023-08-01), where more than one fine or penalty is accrued in respect of the same conduct, or for continuing conduct, those fines or penalties are to be aggregated.
#### Adjustment for changes in accounting policies and prior period errors
@@ -3666,7 +3666,7 @@
- (a) a change in accounting policy that affects income or expenses included in determining the member’s adjusted profits, or
- (b) a correction of an error reflected in the determination, for the purposes of this Part, of the adjusted profits of the member for a previous accounting period, except to the extent the correction of the error results in a material decrease to the member’s liability to covered taxes such that [section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-07-31) (post-filing adjustments of covered taxes) applies.
- (b) a correction of an error reflected in the determination, for the purposes of this Part, of the adjusted profits of the member for a previous accounting period, except to the extent the correction of the error results in a material decrease to the member’s liability to covered taxes such that [section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-08-01) (post-filing adjustments of covered taxes) applies.
#### Accrued pension expense
@@ -3692,7 +3692,7 @@
- (2) A refundable tax credit is “qualifying” to the extent that, under the law of the territory in which it is given, it entitles a person to receive (by way of payment or discharge of liability) the amount of the refundable tax credit within 4 years of meeting the conditions for receiving it.
- (3) But a refundable tax credit is never qualifying if it is creditable or refundable pursuant to a qualified refundable imputation tax or a disqualified refundable imputation tax (see [section 253](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2023-07-31)).
- (3) But a refundable tax credit is never qualifying if it is creditable or refundable pursuant to a qualified refundable imputation tax or a disqualified refundable imputation tax (see [section 253](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2023-08-01)).
- (4) In this Part “*refundable tax credit*” means a tax credit which—
@@ -3706,7 +3706,7 @@
##### 149
- (1) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/149/6/2023-07-31) applies to a member of a multinational group if any of Conditions A to D are met.
- (1) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/149/6/2023-08-01) applies to a member of a multinational group if any of Conditions A to D are met.
- (2) Condition A is that—
@@ -3744,29 +3744,29 @@
- (c) the recorded value of the relevant transaction is not the same in each member’s underlying profits accounts.
- (6) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/149/6/2023-07-31) applies to a member of a multinational group, the underlying profits of the member are to be adjusted to secure that the relevant transaction is reflected on an arm’s length basis.
- (7) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) “*arm’s length basis*”, in relation to a transaction between members of the same multinational group, means reflecting the conditions of the transaction as would have been obtained had the transaction been conducted between independent enterprises in a comparable transaction under comparable circumstances.
- (6) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/149/6/2023-08-01) applies to a member of a multinational group, the underlying profits of the member are to be adjusted to secure that the relevant transaction is reflected on an arm’s length basis.
- (7) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) “*arm’s length basis*”, in relation to a transaction between members of the same multinational group, means reflecting the conditions of the transaction as would have been obtained had the transaction been conducted between independent enterprises in a comparable transaction under comparable circumstances.
#### Transactions between members of a multinational group: differences with accounting for tax
##### 150
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/150/2023-07-31) applies if—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/150/2023-08-01) applies if—
- (a) a transaction between two members of a multinational group located in different territories is not recorded in the same amount, or is not recorded on an arm’s length basis (or is not recorded at all), in the underlying profits accounts of both of those members, and
- (b) there is a permanent difference in respect of the transaction in relation to one or both of those members as a result of adjustments to the taxable income of the member made in connection with transfer pricing.
- (2) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/150/3/2023-07-31) applies if—
- (2) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/150/3/2023-08-01) applies if—
- (a) for each member there is a permanent difference in respect of the transaction which arises as a result of adjustments made in connection with transfer pricing, and
- (b) the permanent difference for each member corresponds to the permanent difference for the other.
- (3) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/150/3/2023-07-31) applies, the underlying profits of each of the members are to be adjusted so that the amount of the transaction reflects the amount reflected in the member’s taxable income.
- (4) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/150/5/2023-07-31) applies if—
- (3) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/150/3/2023-08-01) applies, the underlying profits of each of the members are to be adjusted so that the amount of the transaction reflects the amount reflected in the member’s taxable income.
- (4) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/150/5/2023-08-01) applies if—
- (a) one of the members (“*A*”) is a high tax member,
@@ -3774,13 +3774,13 @@
- (c) there is no permanent difference for the other member (“*B*”) in respect of the transaction arising as a result of adjustments made in connection with transfer pricing.
- (5) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/150/5/2023-07-31) applies—
- (5) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/150/5/2023-08-01) applies—
- (a) the underlying profits of A are to be adjusted so that the amount of the transaction reflects the amount reflected in the member’s taxable income, and
- (b) an adjustment is to be made to the underlying profits of B which corresponds with the amount of the adjustment made to the profits of A.
- (6) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/150/2023-07-31), a member of a multinational group is a high tax member for an accounting period (“*the relevant period*”) if—
- (6) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/150/2023-08-01), a member of a multinational group is a high tax member for an accounting period (“*the relevant period*”) if—
- (a) the nominal tax rate in the territory in which the member is located is, or exceeds, 15% in the relevant period, and
@@ -3792,11 +3792,11 @@
##### 151
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2023-07-31) applies to a member of a multinational group where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2023-08-01) applies to a member of a multinational group where—
- (a) it is released from an obligation to pay a debt (however that obligation arises), and
- (b) at the time of that release, one or more of the circumstances mentioned in [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/1/a/2023-07-31) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/c/2023-07-31) of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-07-31) applied to it.
- (b) at the time of that release, one or more of the circumstances mentioned in [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/1/a/2023-08-01) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/c/2023-08-01) of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-08-01) applied to it.
- (2) Those circumstances are—
@@ -3810,11 +3810,11 @@
- (c) that the member’s liabilities exceed its assets.
- (3) Where the circumstance in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/a/2023-07-31) applies to the member, its underlying profits are to be adjusted to exclude any profits arising as a result of the release of the debt obligation.
- (3) Where the circumstance in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/a/2023-08-01) applies to the member, its underlying profits are to be adjusted to exclude any profits arising as a result of the release of the debt obligation.
- (4) Where—
- (a) the circumstance in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/b/2023-07-31) applies to the member,
- (a) the circumstance in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/b/2023-08-01) applies to the member,
- (b) the circumstance in (2)(a) does not, and
@@ -3826,15 +3826,15 @@
the member’s underlying profits are to be adjusted to exclude any profits arising as a result of the release of the debt obligation.
- (5) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/6/2023-07-31) applies where—
- (a) the circumstance in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/c/2023-07-31) applies to the member,
- (b) neither the circumstance in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/a/2023-07-31) nor [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/b/2023-07-31) applies to the member, and
- (5) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/6/2023-08-01) applies where—
- (a) the circumstance in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/c/2023-08-01) applies to the member,
- (b) neither the circumstance in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/a/2023-08-01) nor [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2/b/2023-08-01) applies to the member, and
- (c) the debt is not a debt owed to a person or entity that is connected to the member.
- (6) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/151/6/2023-07-31) applies, the underlying profits of the member are to be adjusted to exclude the lesser of—
- (6) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/151/6/2023-08-01) applies, the underlying profits of the member are to be adjusted to exclude the lesser of—
- (a) the amount of any profits arising as a result of the release of the debt obligation,
@@ -3842,7 +3842,7 @@
- (c) if, in determining the member’s liability to tax, some or all of the profits arising as a result of the release of the debt obligation are offset by deferred tax assets, the amount of those profits that are offset.
- (7) Where the member is released from more than one obligation to pay a debt at the same time, the release of those obligations is to be treated, for the purposes of applying the conditions in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2023-07-31), as if they represented the release of a single obligation to pay a debt.
- (7) Where the member is released from more than one obligation to pay a debt at the same time, the release of those obligations is to be treated, for the purposes of applying the conditions in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/151/2023-08-01), as if they represented the release of a single obligation to pay a debt.
#### Adjustments where life assurance business carried on
@@ -3878,11 +3878,11 @@
- (b) the member is a low tax member for that period, and
- (c) the expenses are not required to be included as a result of [section 155](https://www.legislation.gov.uk/ukpga/2023/30/section/155/2023-07-31),
- (c) the expenses are not required to be included as a result of [section 155](https://www.legislation.gov.uk/ukpga/2023/30/section/155/2023-08-01),
the member’s underlying profits for that period are to be adjusted to exclude those expenses.
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/154/2023-07-31)—
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/154/2023-08-01)—
- “*intra-group financing arrangement*” means an arrangement between two or more members of a multinational group under which a member (member A) directly or indirectly provides credit or otherwise makes an investment in another member (member B);
@@ -3910,13 +3910,13 @@
- (2) The member’s international shipping profits for the period are the sum of the member’s—
- (a) core international shipping profits (see section [157](https://www.legislation.gov.uk/ukpga/2023/30/section/157/2023-07-31)), and
- (b) ancillary international shipping profits (see section [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-07-31)).
- (3) Subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/156/1/2023-07-31) does not apply if, in the period, the strategic and commercial management of any ship used in international shipping giving rise to those profits is not effectively carried on within the territory in which the member is located.
- (4) In this section, and in sections [157](https://www.legislation.gov.uk/ukpga/2023/30/section/157/2023-07-31) and [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-07-31)—
- (a) core international shipping profits (see section [157](https://www.legislation.gov.uk/ukpga/2023/30/section/157/2023-08-01)), and
- (b) ancillary international shipping profits (see section [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-08-01)).
- (3) Subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/156/1/2023-08-01) does not apply if, in the period, the strategic and commercial management of any ship used in international shipping giving rise to those profits is not effectively carried on within the territory in which the member is located.
- (4) In this section, and in sections [157](https://www.legislation.gov.uk/ukpga/2023/30/section/157/2023-08-01) and [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-08-01)—
- “*international shipping*” means the transportation of passengers or cargo by ship between different territories;
@@ -3938,7 +3938,7 @@
- (4) The core international shipping factor is the member’s core international shipping revenue divided by all revenue earned by the member from any source.
- (5) An activity is a core international shipping activity if it is of a type referred to in subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/157/6/2023-07-31).
- (5) An activity is a core international shipping activity if it is of a type referred to in subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/157/6/2023-08-01).
- (6) The types of activity are—
@@ -3976,7 +3976,7 @@
- (5) An activity is an ancillary international shipping activity if—
- (a) it is of a type referred to in subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/6/2023-07-31), and
- (a) it is of a type referred to in subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/6/2023-08-01), and
- (b) it is performed primarily in connection with international shipping.
@@ -3996,13 +3996,13 @@
- (d) storing such a container for a short period, including by leasing as lessor space for the storage of such a container by another person;
- (e) providing support services (see subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/7/2023-07-31)[(e)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/7/e/2023-07-31)) to persons engaged in international shipping;
- (e) providing support services (see subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/7/2023-08-01)[(e)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/7/e/2023-08-01)) to persons engaged in international shipping;
- (f) holding assets necessary for the member to carry out a core international shipping activity;
- (g) the disposal of emissions allowances it is necessary for the member to hold in order to carry out international shipping.
- (7) For the purposes of subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/6/2023-07-31)—
- (7) For the purposes of subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/6/2023-08-01)—
- (a) “*third party*”, in relation to a member of a multinational group, means a person that is not—
@@ -4014,7 +4014,7 @@
- (c) a lease of a ship is in effect for the period in which the practical effect of that lease and any associated arrangements (including any other lease) is that a person is in the position of a lessee of the ship, whether or not the lease or any other document expressly provides that the person is a lessee of the ship for the whole of that period;
- (d) “*lessee*”, in relation to a ship, means the person referred to in paragraph [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/7/c/2023-07-31);
- (d) “*lessee*”, in relation to a ship, means the person referred to in paragraph [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/158/7/c/2023-08-01);
- (e) “*support services*” means engineering, maintenance, cargo handling, catering and customer relations services.
@@ -4050,17 +4050,17 @@
##### 159
- (1) Where a member of a multinational group is a permanent establishment falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/a/2023-07-31) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31) (entity treated as permanent establishment in accordance with tax treaty), its underlying profits are to be adjusted so that they only reflect amounts of income and expenses that are attributable to it in accordance with the tax treaty in accordance with which it is treated as a permanent establishment (regardless of whether an amount of income is subject to tax or not, or an amount of expenses are deductible or not).
- (2) Where a member of a multinational group is a permanent establishment falling within [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/b/2023-07-31) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31) (permanent establishment taxed on similar basis to residents in absence of tax treaty), its underlying profits are to be adjusted so that they only reflect amounts of income and expenses that are attributable to it in accordance with the law of the territory in which the member is located (regardless of whether an amount of income is subject to tax or not, or an amount of expenses are deductible or not).
- (3) Where a member of a multinational group is a permanent establishment falling within [paragraph (c)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/c/2023-07-31) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31) (permanent establishment located in territory without corporate income tax), its underlying profits are to be adjusted so that they only reflect amounts of income and expenses that would have been attributed to it in accordance with Article 7 of the OECD tax model.
- (1) Where a member of a multinational group is a permanent establishment falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/a/2023-08-01) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01) (entity treated as permanent establishment in accordance with tax treaty), its underlying profits are to be adjusted so that they only reflect amounts of income and expenses that are attributable to it in accordance with the tax treaty in accordance with which it is treated as a permanent establishment (regardless of whether an amount of income is subject to tax or not, or an amount of expenses are deductible or not).
- (2) Where a member of a multinational group is a permanent establishment falling within [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/b/2023-08-01) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01) (permanent establishment taxed on similar basis to residents in absence of tax treaty), its underlying profits are to be adjusted so that they only reflect amounts of income and expenses that are attributable to it in accordance with the law of the territory in which the member is located (regardless of whether an amount of income is subject to tax or not, or an amount of expenses are deductible or not).
- (3) Where a member of a multinational group is a permanent establishment falling within [paragraph (c)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/c/2023-08-01) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01) (permanent establishment located in territory without corporate income tax), its underlying profits are to be adjusted so that they only reflect amounts of income and expenses that would have been attributed to it in accordance with Article 7 of the OECD tax model.
#### Attribution of losses between permanent establishment and main entity
##### 160
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2/2023-07-31) applies where, on determining (ignoring this section) the adjusted profits of a member of a multinational group that is a permanent establishment for an accounting period (“*the relevant period*”), that member has a loss.
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2/2023-08-01) applies where, on determining (ignoring this section) the adjusted profits of a member of a multinational group that is a permanent establishment for an accounting period (“*the relevant period*”), that member has a loss.
- (2) So much of that loss as—
@@ -4070,15 +4070,15 @@
is to be treated as an expense of the main entity for the purposes of determining the adjusted profits of the main entity for the relevant period.
- (3) [Subsections (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/4/2023-07-31) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/5/2023-07-31) apply where an amount (“*the relevant amount*”) is treated as an expense of the main entity for the purposes of determining its adjusted profits for the relevant period as a result of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2/2023-07-31).
- (3) [Subsections (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/4/2023-08-01) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/5/2023-08-01) apply where an amount (“*the relevant amount*”) is treated as an expense of the main entity for the purposes of determining its adjusted profits for the relevant period as a result of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2/2023-08-01).
- (4) The relevant amount is to be excluded from the adjusted profits of the permanent establishment for the relevant period.
- (5) Where, on determining (ignoring this section) the adjusted profits of the permanent establishment for an accounting period after the relevant period, the permanent establishment has made a profit for that period, those profits are to be treated as income of the main entity for the purpose of determining that entity’s adjusted profits for that period.
- (6) But [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/5/2023-07-31) only applies until the total amount treated as income of the main entity as a result of that subsection is equal to the relevant amount.
- (7) Where profits of the permanent establishment for an accounting period are treated as income of the main entity as a result of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/5/2023-07-31), those profits are to be excluded from the adjusted profits of the permanent establishment for that period.
- (6) But [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/5/2023-08-01) only applies until the total amount treated as income of the main entity as a result of that subsection is equal to the relevant amount.
- (7) Where profits of the permanent establishment for an accounting period are treated as income of the main entity as a result of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/5/2023-08-01), those profits are to be excluded from the adjusted profits of the permanent establishment for that period.
### Elections to treat certain amounts differently
@@ -4102,11 +4102,11 @@
- (ii) the time the asset was acquired or the liability was incurred.
- (3) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under this section.
- (3) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under this section.
- (4) Where an election under this section has been revoked, the underlying profits of each member of a multinational group in respect of which the election was in force are to be adjusted in the first accounting period in respect of which the election no longer applies (“the revocation period”) by adjusting for the change in treatment of the assets and liabilities that were subject to the election and that remain held by the member at the commencement of the revocation period.
- (5) To adjust the underlying profits of a member of a multinational group for the change in treatment of an asset or liability subject to an election under this section, subtract the carrying value of that asset or liability as determined in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/161/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/161/2/b/2023-07-31) from the fair value of the asset or liability at the commencement of the revocation period and—
- (5) To adjust the underlying profits of a member of a multinational group for the change in treatment of an asset or liability subject to an election under this section, subtract the carrying value of that asset or liability as determined in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/161/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/161/2/b/2023-08-01) from the fair value of the asset or liability at the commencement of the revocation period and—
- (a) if the amount given is positive, add it to those profits, or
@@ -4116,7 +4116,7 @@
##### 162
- (1) The filing member of a multinational group may make an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2023-07-31) for the members of the group located in a territory to adjust their underlying profits in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2/2023-07-31).
- (1) The filing member of a multinational group may make an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2023-08-01) for the members of the group located in a territory to adjust their underlying profits in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2/2023-08-01).
- (2) Where such an election has effect—
@@ -4126,7 +4126,7 @@
- (3) Where—
- (a) the underlying profits of a member of a multinational group are adjusted in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2/2023-07-31) in respect of an amount of stock-based compensation,
- (a) the underlying profits of a member of a multinational group are adjusted in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2/2023-08-01) in respect of an amount of stock-based compensation,
- (b) some expenses in respect of that compensation were recorded in the underlying profits of the member in one or more accounting periods before the election had effect, and
@@ -4134,11 +4134,11 @@
the member’s adjusted profits are to be adjusted to include the amount of that excess as if it were income.
- (4) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2023-07-31).
- (4) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2023-08-01).
- (5) Where—
- (a) the underlying profits of a member of a multinational group are adjusted in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2/2023-07-31),
- (a) the underlying profits of a member of a multinational group are adjusted in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2/2023-08-01),
- (b) the election is revoked before all of the stock-based compensation has been paid, and
@@ -4150,7 +4150,7 @@
##### 163
- (1) The filing member of a multinational group may elect that the net gain in respect of the disposal of local tangible assets by standard members of the group in a territory in an accounting period (“the election period”) is to be spread across that period and the preceding 4 accounting periods (collectively “*the look-back period*”) in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2/2023-07-31).
- (1) The filing member of a multinational group may elect that the net gain in respect of the disposal of local tangible assets by standard members of the group in a territory in an accounting period (“the election period”) is to be spread across that period and the preceding 4 accounting periods (collectively “*the look-back period*”) in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2/2023-08-01).
- (2) To spread the net gain across those periods take the following steps—
@@ -4176,25 +4176,25 @@
- *Step 11* For each accounting period in the look-back period where no member has any such gains, adjust the underlying profits of each member in the territory by adding the amount given by multiplying the result of Step 8 by the amount given by dividing 1 by the number of members of the group in that territory.
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-07-31) any gain or loss arising from the transfer of assets between standard members of a multinational group is to be ignored.
- (4) Where, as a result of an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-07-31), the underlying profits of a member of a multinational group in an accounting period is adjusted, the following are to be recalculated for that period—
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-08-01) any gain or loss arising from the transfer of assets between standard members of a multinational group is to be ignored.
- (4) Where, as a result of an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-08-01), the underlying profits of a member of a multinational group in an accounting period is adjusted, the following are to be recalculated for that period—
- (a) the effective tax rate for the member and the other members of that group located in the same territory, and
- (b) the top-up amounts that those members would have.
- (5) [Section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31)—
- (5) [Section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01)—
- (a) makes provision about the consequences of a recalculation (which may include the generation of an additional top-up amount), and
- (b) applies to recalculations under [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/163/4/2023-07-31).
- (6) Where an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-07-31) has effect in relation to a member of a multinational group, any amount of tax with respect to any gains or loss in respect of the disposal of local tangible assets in the election year is to be excluded from the calculation of the member’s covered tax balance.
- (7) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-07-31).
- (8) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-07-31) “*local tangible asset*” means immovable property in the same territory as the member disposing of it is located.
- (b) applies to recalculations under [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/163/4/2023-08-01).
- (6) Where an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-08-01) has effect in relation to a member of a multinational group, any amount of tax with respect to any gains or loss in respect of the disposal of local tangible assets in the election year is to be excluded from the calculation of the member’s covered tax balance.
- (7) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-08-01).
- (8) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-08-01) “*local tangible asset*” means immovable property in the same territory as the member disposing of it is located.
#### Election to exclude intra-group transactions
@@ -4202,15 +4202,15 @@
- (1) The filing member of a multinational group may elect that standard members of the group that are located in the same territory and are included in a tax consolidation group are to apply the consolidated accounting treatment of the ultimate parent to eliminate income, expenses, gains and losses arising from transactions between those members.
- (2) Where an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-07-31) has effect—
- (2) Where an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-08-01) has effect—
- (a) the underlying profits of those members are to be adjusted accordingly in the accounting periods for which the election has effect, and
- (b) the underlying profits of those members are to be adjusted for the first accounting period for which the election has effect so as to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising from the making of the election.
- (3) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-07-31).
- (4) Where an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-07-31) is revoked, the underlying profits of the members to whom the election applied are to be adjusted in the first accounting period in which the revocation has effect so as to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising from the revocation of the election.
- (3) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-08-01).
- (4) Where an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-08-01) is revoked, the underlying profits of the members to whom the election applied are to be adjusted in the first accounting period in which the revocation has effect so as to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising from the revocation of the election.
- (5) For the purposes of this section, members of a multinational group in a territory are included in a “tax consolidation group” if under the law of that territory the income, expenses, gains or losses of those members may for tax purposes be aggregated, surrendered to each other or otherwise shared or transferred between them as a result of a connection between those members.
@@ -4218,23 +4218,23 @@
##### 165
- (1) The filing member of a multinational group may elect that qualifying excluded equity gains or losses of the standard members of the group in a territory are to be treated as not being excluded equity gains or losses for the purposes of [section 142](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2023-07-31).
- (1) The filing member of a multinational group may elect that qualifying excluded equity gains or losses of the standard members of the group in a territory are to be treated as not being excluded equity gains or losses for the purposes of [section 142](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2023-08-01).
- (2) Excluded equity gains or losses are “qualifying” if—
- (a) those gains or losses are subject to covered taxes (as taxable gains or allowable losses) in that territory, or
- (b) in the case of gains or losses falling within [section 142](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/a/2023-07-31) that are not subject to covered taxes in that territory, gains or losses on the disposal of the qualifying interest in question are subject to covered taxes in that territory.
- (3) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/165/1/2023-07-31).
- (b) in the case of gains or losses falling within [section 142](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2/a/2023-08-01) that are not subject to covered taxes in that territory, gains or losses on the disposal of the qualifying interest in question are subject to covered taxes in that territory.
- (3) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/165/1/2023-08-01).
- (4) But a revocation of the election under that paragraph does not have effect in relation to equity gains or losses in respect of an ownership interest if—
- (a) any member’s adjusted profits have included a loss in respect of that ownership interest as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/165/1/2023-07-31), and
- (b) that loss would otherwise have been excluded from those profits as a result of [section 142](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/1/2023-07-31).
Accordingly, [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/165/1/2023-07-31) will apply to equity gains and losses in respect of that ownership interest even after the election is revoked.
- (a) any member’s adjusted profits have included a loss in respect of that ownership interest as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/165/1/2023-08-01), and
- (b) that loss would otherwise have been excluded from those profits as a result of [section 142](https://www.legislation.gov.uk/ukpga/2023/30/section/142/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/142/1/2023-08-01).
Accordingly, [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/165/1/2023-08-01) will apply to equity gains and losses in respect of that ownership interest even after the election is revoked.
#### Election in relation to hedging currency risk in ownership interests
@@ -4244,7 +4244,7 @@
- (2) A gain or loss arising from fluctuations in exchange rates is “qualifying” to the extent—
- (a) the gain or loss is attributable to an instrument intended to act as a hedge against currency risk in ownership interests held by the member or another member of the group, other than an ownership interest in an entity falling within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/166/3/2023-07-31),
- (a) the gain or loss is attributable to an instrument intended to act as a hedge against currency risk in ownership interests held by the member or another member of the group, other than an ownership interest in an entity falling within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/166/3/2023-08-01),
- (b) the gain or loss is recognised in other comprehensive income in the consolidated financial statements of the ultimate parent,
@@ -4254,7 +4254,7 @@
- (e) where the instrument is not held by the member, the economic and accounting effect of the hedge has been transferred to the member.
- (3) An ownership interest in an entity held by a member of a multinational group falls within [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/166/3/2023-07-31) if the members of that group do not, between them, have qualifying interests that entitle them to 10% or more of the entity’s —
- (3) An ownership interest in an entity held by a member of a multinational group falls within [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/166/3/2023-08-01) if the members of that group do not, between them, have qualifying interests that entitle them to 10% or more of the entity’s —
- (a) profits,
@@ -4264,7 +4264,7 @@
- (d) voting rights.
- (4) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/166/2023-07-31).
- (4) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/166/2023-08-01).
### Dealing with transparency and entities subject to qualifying dividend regime
@@ -4290,7 +4290,7 @@
##### 168
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-07-31) applies where a member of a multinational group (“*M*”) is a flow-through entity.
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-08-01) applies where a member of a multinational group (“*M*”) is a flow-through entity.
- (2) An entity is a flow-through entity if—
@@ -4300,7 +4300,7 @@
- (3) A proportion of the underlying profits of M is to be allocated to each entity (“*O*”) with an ownership interest in M in relation to which condition A or B is met.
- (4) The proportion to be allocated to O is equal to the proportional ownership interest O has in M in relation to which condition A or B is met (subject to subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/168/7/2023-07-31)).
- (4) The proportion to be allocated to O is equal to the proportional ownership interest O has in M in relation to which condition A or B is met (subject to subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/168/7/2023-08-01)).
- (5) Condition A is that—
@@ -4340,7 +4340,7 @@
- (10) Any amount of M’s underlying profits not allocated to an entity in accordance with this section is to be included in the adjusted profits of M.
- (11) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-07-31), an entity (“*R*”) is a “reverse hybrid entity” if R is regarded as tax transparent in the territory in which it is located and there is a territory—
- (11) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-08-01), an entity (“*R*”) is a “reverse hybrid entity” if R is regarded as tax transparent in the territory in which it is located and there is a territory—
- (a) in which an entity with a direct ownership interest in R is located, and R is regarded in that territory as not being tax transparent, or
@@ -4414,7 +4414,7 @@
- (b) does not hold ownership interests that together entitle that entity to more than 5% of the profits and assets of the ultimate parent.
- (6) Where the adjusted profits of the ultimate parent of a multinational group for an accounting period are reduced as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/170/1/2023-07-31), its covered tax balance (see [section 174](https://www.legislation.gov.uk/ukpga/2023/30/section/174/2023-07-31)) is—
- (6) Where the adjusted profits of the ultimate parent of a multinational group for an accounting period are reduced as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/170/1/2023-08-01), its covered tax balance (see [section 174](https://www.legislation.gov.uk/ukpga/2023/30/section/174/2023-08-01)) is—
- (a) in the case of a positive covered tax balance, to be reduced by the same proportion that the underlying profits were reduced, or
@@ -4430,7 +4430,7 @@
- (8) An amount of that loss is disqualified if the holder of an ownership interest in the ultimate parent is allowed to use that amount in computing the holder’s taxable income.
- (9) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/170/2023-07-31) applies to a member of a multinational group as it applies to the ultimate parent if the member is—
- (9) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/170/2023-08-01) applies to a member of a multinational group as it applies to the ultimate parent if the member is—
- (a) a permanent establishment through which the ultimate parent wholly or partly carries out its business, if the ultimate parent is a flow-through entity, or
@@ -4456,7 +4456,7 @@
- (c) the ultimate parent is a supply cooperative and the recipient is an individual.
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2/2023-07-31) patronage dividends made by a supply cooperative are subject to tax to the extent they reduce an expense or cost that is deductible in the computation of the recipient’s taxable income.
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2/2023-08-01) patronage dividends made by a supply cooperative are subject to tax to the extent they reduce an expense or cost that is deductible in the computation of the recipient’s taxable income.
- (4) Condition B is that the recipient of the qualifying dividend is an individual that—
@@ -4474,7 +4474,7 @@
- (d) a pension fund that is not a pension services entity.
- (6) Where the underlying profits of the ultimate parent of a multinational group for an accounting period are reduced as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/1/2023-07-31)—
- (6) Where the underlying profits of the ultimate parent of a multinational group for an accounting period are reduced as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/1/2023-08-01)—
- (a) its covered tax balance, excluding any tax in respect of which a deduction for the dividend was allowed, is—
@@ -4482,9 +4482,9 @@
- (ii) in the case of a negative covered tax balance, to be increased by that same proportion, and
- (b) its adjusted profits are to be further reduced by an amount equal to the amount by which its covered tax balance was adjusted under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/6/a/2023-07-31).
- (7) References in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31) to “the recipient” of a qualifying dividend means—
- (b) its adjusted profits are to be further reduced by an amount equal to the amount by which its covered tax balance was adjusted under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/6/a/2023-08-01).
- (7) References in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01) to “the recipient” of a qualifying dividend means—
- (a) the direct recipient of the qualifying dividend, or
@@ -4494,15 +4494,15 @@
- (ii) in the case of an individual, they are tax resident in a territory in which the direct recipient, and every entity through which that ownership interest is held, is regarded as tax transparent.
- (8) Where there is more than one recipient of a dividend as a result of [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/7/b/2023-07-31) of [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/7/2023-07-31)—
- (a) [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31) is to be applied separately in relation to each recipient,
- (8) Where there is more than one recipient of a dividend as a result of [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/7/b/2023-08-01) of [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/7/2023-08-01)—
- (a) [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01) is to be applied separately in relation to each recipient,
- (b) where a recipient falls within that paragraph, references to the dividend is to so much of the dividend to which that recipient is entitled to as a result of its ownership interests in the direct recipient.
But a reduction of adjusted profits may not be made more than once in respect of a dividend or a part of it (where more than one individual or entity can be regarded as a recipient of the whole dividend or a part of it).
- (9) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31) and [section 172](https://www.legislation.gov.uk/ukpga/2023/30/section/172/2023-07-31)—
- (9) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01) and [section 172](https://www.legislation.gov.uk/ukpga/2023/30/section/172/2023-08-01)—
- “*qualifying dividend regime*” means a tax regime designed to result in a single level of taxation on the owners of an entity through— a deduction from the income of the entity for distributions of profits to the owners, a regime where certain of the profits (“the relevant profits”) of a UK REIT or overseas REIT equivalent are not taxed provided a sufficient proportion of the relevant profits is distributed, or a regime applicable to a supply cooperative that exempts the cooperative from taxation on profits in connection with its distribution of patronage dividends;
@@ -4518,9 +4518,9 @@
##### 172
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/2/2023-07-31) applies to a distribution of a qualifying dividend by a member of a multinational group where conditions X and Y are met.
- (2) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/172/2/2023-07-31) applies, [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/1/2023-07-31) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/6/2023-07-31) of [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31) apply to the distribution made by the member as it applies to a distribution by the ultimate parent in relation to which one of conditions A to C in that section apply.
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/2/2023-08-01) applies to a distribution of a qualifying dividend by a member of a multinational group where conditions X and Y are met.
- (2) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/172/2/2023-08-01) applies, [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/1/2023-08-01) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/6/2023-08-01) of [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01) apply to the distribution made by the member as it applies to a distribution by the ultimate parent in relation to which one of conditions A to C in that section apply.
- (3) Condition X is that the member—
@@ -4540,21 +4540,21 @@
- (i) to the ultimate parent, or
- (ii) to one of the members referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/2023-07-31)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/ii/2023-07-31),
- (b) in the case of a distribution made to the ultimate parent, the whole of the qualifying dividend is distributed by the ultimate parent and one of the conditions A to C in [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31) applies to each of the distributions made from the qualifying dividend, and
- (c) in the case of a distribution made to one of the members referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/2023-07-31)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/ii/2023-07-31)—
- (ii) to one of the members referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/2023-08-01)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/ii/2023-08-01),
- (b) in the case of a distribution made to the ultimate parent, the whole of the qualifying dividend is distributed by the ultimate parent and one of the conditions A to C in [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01) applies to each of the distributions made from the qualifying dividend, and
- (c) in the case of a distribution made to one of the members referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/2023-08-01)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/ii/2023-08-01)—
- (i) the whole of the dividend is distributed to the ultimate parent, or to one of the members referred to in that subsection provided the whole amount is eventually distributed to the ultimate parent via one or more further distributions to members referred to in that subsection, and
- (ii) the ultimate parent distributes the whole of the dividend and one of conditions A to C in [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31) applies to each of the distributions made from the qualifying dividend.
- (ii) the ultimate parent distributes the whole of the dividend and one of conditions A to C in [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01) applies to each of the distributions made from the qualifying dividend.
- (5) For the purposes of this section, it is to be assumed that —
- (a) where the ultimate parent, or a member referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/2023-07-31)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/ii/2023-07-31), has received the whole of the qualifying dividend, but has also received other distributions or has other income, any subsequent distribution by the ultimate parent or member is funded first by the qualifying dividend and then by any other amounts, and
- (b) where the ultimate parent receives amounts from members referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/2023-07-31)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/ii/2023-07-31), those amounts fund distributions that meet one of conditions A to C in [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31) before distributions that do not.
- (a) where the ultimate parent, or a member referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/2023-08-01)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/ii/2023-08-01), has received the whole of the qualifying dividend, but has also received other distributions or has other income, any subsequent distribution by the ultimate parent or member is funded first by the qualifying dividend and then by any other amounts, and
- (b) where the ultimate parent receives amounts from members referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/2023-08-01)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/172/3/c/ii/2023-08-01), those amounts fund distributions that meet one of conditions A to C in [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01) before distributions that do not.
### Chapter 5 — Covered tax balance
@@ -4578,11 +4578,11 @@
- (a) multinational top-up tax, or any tax equivalent to multinational top-up tax;
- (b) a qualifying domestic top-up tax (see [section 256](https://www.legislation.gov.uk/ukpga/2023/30/section/256/2023-07-31));
- (c) a qualifying undertaxed profits tax (see [section 257](https://www.legislation.gov.uk/ukpga/2023/30/section/257/2023-07-31));
- (d) a disqualified refundable imputation tax (see [section 253](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2023-07-31));
- (b) a qualifying domestic top-up tax (see [section 256](https://www.legislation.gov.uk/ukpga/2023/30/section/256/2023-08-01));
- (c) a qualifying undertaxed profits tax (see [section 257](https://www.legislation.gov.uk/ukpga/2023/30/section/257/2023-08-01));
- (d) a disqualified refundable imputation tax (see [section 253](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2023-08-01));
- (e) where the member carries on a life assurance business, taxes in respect of which amounts were charged to the member’s policyholders.
@@ -4594,23 +4594,23 @@
- *Step 1* Determine the amount of the qualifying current tax expense accrued by the member for that period.
- *Step 2* Determine whether any amounts need to be excluded from that expense under [section 175](https://www.legislation.gov.uk/ukpga/2023/30/section/175/2023-07-31) (and adjust it accordingly).
- *Step 3* Determine whether any amounts need to be reflected in that expense under [section 176](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2023-07-31) (and adjust it accordingly).
- *Step 2* Determine whether any amounts need to be excluded from that expense under [section 175](https://www.legislation.gov.uk/ukpga/2023/30/section/175/2023-08-01) (and adjust it accordingly).
- *Step 3* Determine whether any amounts need to be reflected in that expense under [section 176](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2023-08-01) (and adjust it accordingly).
- *Step 4* If any amount of covered taxes is taken into account more than once in the covered tax balance expense, adjust it so that the amount is only taken into account once.
- (2) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), current tax expense is to be expressed—
- (2) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), current tax expense is to be expressed—
- (a) as a positive number where it represents an expense, and
- (b) as a negative number where it represents a credit.
- (3) If the result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/174/1/2023-07-31) is a negative amount that amount (expressed as a positive number) is a “negative covered tax balance”.
- (4) If the result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/174/1/2023-07-31) is a positive amount, or nil, that amount is a “positive covered tax balance”.
- (5) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)—
- (3) If the result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/174/1/2023-08-01) is a negative amount that amount (expressed as a positive number) is a “negative covered tax balance”.
- (4) If the result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/174/1/2023-08-01) is a positive amount, or nil, that amount is a “positive covered tax balance”.
- (5) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)—
- references to the “*covered tax balance*” of a member of a multinational group are to a positive covered tax balance or a negative covered tax balance;
@@ -4620,7 +4620,7 @@
##### 175
- (1) The amounts referred to in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/2023-07-31) are to be excluded from a member of a multinational group’s qualifying current tax expense (to the extent they would otherwise be included).
- (1) The amounts referred to in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/2023-08-01) are to be excluded from a member of a multinational group’s qualifying current tax expense (to the extent they would otherwise be included).
- (2) Those amounts are as follows—
@@ -4634,39 +4634,39 @@
- (e) any amount allocated to another member of the multinational group in accordance with this Part;
- (f) any amount excluded under [section 180](https://www.legislation.gov.uk/ukpga/2023/30/section/180/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/b/2023-07-31) (blended CFC regime).
- (f) any amount excluded under [section 180](https://www.legislation.gov.uk/ukpga/2023/30/section/180/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/b/2023-08-01) (blended CFC regime).
#### Amounts to be reflected in covered tax balance
##### 176
- (1) The amounts referred to in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/2023-07-31) are to be reflected in a member of a multinational group’s qualifying current tax expense (to the extent they were not already reflected).
- (1) The amounts referred to in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/2023-08-01) are to be reflected in a member of a multinational group’s qualifying current tax expense (to the extent they were not already reflected).
- (2) Those amounts are as follows—
- (a) any amount of covered taxes reflected in the member’s underlying profits but which (ignoring [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/a/2023-07-31)) is not reflected in the qualifying current tax expense;
- (b) the total deferred tax adjustment amount (see [section 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-07-31));
- (c) any amount of covered taxes paid, or refunded, in the current accounting period that relates to an uncertain tax position where the amount was excluded under [section 175](https://www.legislation.gov.uk/ukpga/2023/30/section/175/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/175/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/175/2/b/2023-07-31) for a previous accounting period;
- (a) any amount of covered taxes reflected in the member’s underlying profits but which (ignoring [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/a/2023-08-01)) is not reflected in the qualifying current tax expense;
- (b) the total deferred tax adjustment amount (see [section 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-08-01));
- (c) any amount of covered taxes paid, or refunded, in the current accounting period that relates to an uncertain tax position where the amount was excluded under [section 175](https://www.legislation.gov.uk/ukpga/2023/30/section/175/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/175/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/175/2/b/2023-08-01) for a previous accounting period;
- (d) any amount of credit or refund in respect of a tax credit (whether refundable or not) that—
- (i) is not a qualifying refundable tax credit, and
- (ii) has not been reflected in its qualifying current tax expense in the current accounting period or a previous accounting period (see [section 148](https://www.legislation.gov.uk/ukpga/2023/30/section/148/2023-07-31));
- (ii) has not been reflected in its qualifying current tax expense in the current accounting period or a previous accounting period (see [section 148](https://www.legislation.gov.uk/ukpga/2023/30/section/148/2023-08-01));
- (e) any amount of covered taxes refunded or credited to the member, other than a qualifying refundable tax credit;
- (f) where [section 187](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/5/2023-07-31) applies in relation to the member, the amount of special loss deferred tax assets used, in accordance with [section 187](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/7/2023-07-31), by the member for the current accounting period;
- (f) where [section 187](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/5/2023-08-01) applies in relation to the member, the amount of special loss deferred tax assets used, in accordance with [section 187](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/7/2023-08-01), by the member for the current accounting period;
- (g) any amount of covered taxes recorded in other comprehensive income of the member relating to amounts included in determining its adjusted profits that are subject to covered taxes under the law of the territory in which the member is located;
- (h) any amount of covered taxes relating to an amount reflected in the member’s adjusted profits as a result of [section 146](https://www.legislation.gov.uk/ukpga/2023/30/section/146/2023-07-31) (adjustment for changes in accounting polices and prior period errors);
- (h) any amount of covered taxes relating to an amount reflected in the member’s adjusted profits as a result of [section 146](https://www.legislation.gov.uk/ukpga/2023/30/section/146/2023-08-01) (adjustment for changes in accounting polices and prior period errors);
- (i) any amount allocated to the member from another member of the multinational group.
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)—
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)—
- (a) an amount of tax paid or tax expense is to be expressed as a positive number, and
@@ -4680,11 +4680,11 @@
- (1) Any amount of qualifying current tax expense included in the underlying profits accounts of a member of a multinational group that is in respect of profits of a permanent establishment is to be allocated to the permanent establishment.
- (2) Where profits of a permanent establishment are treated as income of the main entity as a result of [section 160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/5/2023-07-31), covered taxes on those profits are to be allocated to the main entity.
- (3) But the amount allocated in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/177/2/2023-07-31) is not to exceed the amount given by multiplying the amount of those profits by the highest corporate tax rate on ordinary income in the territory where the main entity is located.
- (4) Any deferred tax asset with respect to a loss arising in the territory of a permanent establishment that is treated as an expense of the main entity as a result of section [160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2/2023-07-31) is to be ignored in determining the covered tax balance of either the main entity or the permanent establishment.
- (2) Where profits of a permanent establishment are treated as income of the main entity as a result of [section 160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/5/2023-08-01), covered taxes on those profits are to be allocated to the main entity.
- (3) But the amount allocated in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/177/2/2023-08-01) is not to exceed the amount given by multiplying the amount of those profits by the highest corporate tax rate on ordinary income in the territory where the main entity is located.
- (4) Any deferred tax asset with respect to a loss arising in the territory of a permanent establishment that is treated as an expense of the main entity as a result of section [160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2/2023-08-01) is to be ignored in determining the covered tax balance of either the main entity or the permanent establishment.
#### Reallocation of tax expense
@@ -4692,7 +4692,7 @@
- (1) Where—
- (a) profits have been allocated to a member of a multinational group (“*O*”) under [section 167](https://www.legislation.gov.uk/ukpga/2023/30/section/167/2023-07-31) or [168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-07-31) (allocation of profits of hybrid, transparent and reverse hybrid entities), and
- (a) profits have been allocated to a member of a multinational group (“*O*”) under [section 167](https://www.legislation.gov.uk/ukpga/2023/30/section/167/2023-08-01) or [168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-08-01) (allocation of profits of hybrid, transparent and reverse hybrid entities), and
- (b) the member from whom the profits have been allocated has an amount of qualifying current tax expense in respect of those profits,
@@ -4706,9 +4706,9 @@
- *Step 3* Multiply the result of Step 2 by the amount of mobile income to which the qualifying tax expense relates.
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-07-31) and [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-07-31), “*mobile income*” means income of a type mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/4/2023-07-31) in respect of which a member of a multinational group is subject to tax—
- (a) under a controlled foreign company tax regime (see [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/4/2023-07-31)), or
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-08-01) and [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-08-01), “*mobile income*” means income of a type mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/4/2023-08-01) in respect of which a member of a multinational group is subject to tax—
- (a) under a controlled foreign company tax regime (see [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/4/2023-08-01)), or
- (b) as a result of an ownership interest in an entity regarded as tax transparent in the territory the member is located in but not so regarded in the territory in which that entity is located.
@@ -4724,7 +4724,7 @@
- (e) an annuity, or
- (f) net gains from property of a type that produces income described in [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/4/a/2023-07-31) to [(e)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/4/e/2023-07-31).
- (f) net gains from property of a type that produces income described in [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/4/a/2023-08-01) to [(e)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/4/e/2023-08-01).
#### Controlled foreign company tax regimes
@@ -4746,7 +4746,7 @@
- *Step 3* Multiply the result of Step 2 by the amount of mobile income to which the qualifying current tax expense relates.
- (3) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/1/2023-07-31) does not apply to a controlled foreign company tax regime that is a blended CFC regime in accounting periods commencing on or before 31 December 2025 that end on or before 30 June 2027.
- (3) [Subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/1/2023-08-01) does not apply to a controlled foreign company tax regime that is a blended CFC regime in accounting periods commencing on or before 31 December 2025 that end on or before 30 June 2027.
- (4) In this Part—
@@ -4758,9 +4758,9 @@
##### 180
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/180/2023-07-31) applies to accounting periods commencing on or before 31 December 2025 that end on or before 30 June 2027.
- (2) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/2023-07-31) applies where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/180/2023-08-01) applies to accounting periods commencing on or before 31 December 2025 that end on or before 30 June 2027.
- (2) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/2023-08-01) applies where—
- (a) a member of a multinational group (“*C*”) is subject to a blended CFC regime in an accounting period (“*the relevant period*”),
@@ -4784,7 +4784,7 @@
- (6) But where—
- (a) the result of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/5/b/2023-07-31) in relation to a blended CFC entity is less than nil, or
- (a) the result of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/5/b/2023-08-01) in relation to a blended CFC entity is less than nil, or
- (b) the applicable effective tax rate of that entity is greater than 15%,
@@ -4826,7 +4826,7 @@
- (1) Where qualifying current tax expense in respect of covered taxes accrued in an accounting period in the underlying profits accounts of a member of a multinational group (“*R*”) is in respect of a distribution received from another member of the group (“*D*”) in which R has a direct ownership interest, that expense is to be allocated to D.
- (2) Reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/181/1/2023-07-31) to a distribution received is to be treated as including deemed distributions taken account of for the purposes of taxes on a shareholder of an entity in respect of undistributed earnings or capital of the entity.
- (2) Reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/181/1/2023-08-01) to a distribution received is to be treated as including deemed distributions taken account of for the purposes of taxes on a shareholder of an entity in respect of undistributed earnings or capital of the entity.
### Dealing with deferred tax assets etc
@@ -4846,23 +4846,23 @@
- (d) any amount of that expense arising from a re-measurement with respect to a change in the rate of tax;
- (e) any amount of that expense that reflects the generation or use of tax credits (but see [section 183](https://www.legislation.gov.uk/ukpga/2023/30/section/183/2023-07-31) which permits the inclusion of qualifying foreign tax credits).
- (e) any amount of that expense that reflects the generation or use of tax credits (but see [section 183](https://www.legislation.gov.uk/ukpga/2023/30/section/183/2023-08-01) which permits the inclusion of qualifying foreign tax credits).
- (3) Where a deferred tax liability is reversed in an accounting period, and that deferred tax liability was treated as an unclaimed accrual in a previous accounting period, the deferred tax expense is to be increased by the amount of the deferred tax liability that has reversed.
- (4) Where a deferred tax asset is not reflected in the deferred tax expense only as a result of the recognition criteria not being met, that deferred tax asset is to be reflected in the total deferred tax adjustment amount.
- (5) Where the amount of a deferred tax asset is adjusted as a result of [section 186](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-07-31), an amount equal to that adjustment is to be reflected in the total deferred tax adjustment amount.
- (6) Where an amount of recaptured deferred tax liability (see [section 184](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2023-07-31)) that was determined for a previous accounting period is reversed during the accounting period, that amount is to be reflected in the total deferred tax adjustment amount.
- (7) Where the deferred tax expense relates to covered taxes where the rate is greater than 15%, the amount of that expense (after adjustment under [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2/2023-07-31) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/6/2023-07-31)) is to be adjusted so that it reflects the amount it would have been had the rate been 15%.
- (8) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-07-31)—
- (5) Where the amount of a deferred tax asset is adjusted as a result of [section 186](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-08-01), an amount equal to that adjustment is to be reflected in the total deferred tax adjustment amount.
- (6) Where an amount of recaptured deferred tax liability (see [section 184](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2023-08-01)) that was determined for a previous accounting period is reversed during the accounting period, that amount is to be reflected in the total deferred tax adjustment amount.
- (7) Where the deferred tax expense relates to covered taxes where the rate is greater than 15%, the amount of that expense (after adjustment under [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2/2023-08-01) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/6/2023-08-01)) is to be adjusted so that it reflects the amount it would have been had the rate been 15%.
- (8) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-08-01)—
- “*disallowed accrual*” means— any movement in deferred tax expense reflected in the member’s underlying profits which relates to an uncertain tax position, or any movement in deferred tax expense reflected in those profits which relates to distributions from another member of that group;
- “*unclaimed accrual*” means an increase in a deferred tax liability reflected in the member’s underlying profits for an accounting period— that is not expected to be reversed before the end of the fifth accounting period after that period, and in respect of which the filing member has elected not to include in the total deferred tax adjustment amount for that period. [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election not to include an unclaimed accrual in the total deferred tax adjustment amount.
- “*unclaimed accrual*” means an increase in a deferred tax liability reflected in the member’s underlying profits for an accounting period— that is not expected to be reversed before the end of the fifth accounting period after that period, and in respect of which the filing member has elected not to include in the total deferred tax adjustment amount for that period. [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election not to include an unclaimed accrual in the total deferred tax adjustment amount.
#### Qualifying foreign tax credits (substitute loss carry forward assets)
@@ -4888,9 +4888,9 @@
- (b) the amount of domestic loss used to offset the relevant foreign income, multiplied by the tax rate in respect of which the foreign tax was calculated.
- (4) [Section 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/7/2023-07-31) (adjustment where rate of tax exceeds 15%) applies to a qualifying tax credit included in the member’s total deferred tax adjustment amount as it applies to the member’s deferred tax expense.
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/183/2023-07-31) “*relevant foreign income*”, in relation to a member of a multinational group, means income of a controlled foreign company of the member on which the member is taxed as a result of a controlled foreign company tax regime.
- (4) [Section 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/7/2023-08-01) (adjustment where rate of tax exceeds 15%) applies to a qualifying tax credit included in the member’s total deferred tax adjustment amount as it applies to the member’s deferred tax expense.
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/183/2023-08-01) “*relevant foreign income*”, in relation to a member of a multinational group, means income of a controlled foreign company of the member on which the member is taxed as a result of a controlled foreign company tax regime.
#### Recaptured deferred tax liabilities
@@ -4908,9 +4908,9 @@
- (ii) the top-up amounts that those members would have.
- (3) [Section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) applies to recalculations under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2/2023-07-31).
- (4) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/1/2023-07-31) “*excluded liability*” means a tax expense attributable to changes in associated deferred tax liabilities in respect of—
- (3) [Section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) applies to recalculations under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2/2023-08-01).
- (4) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/1/2023-08-01) “*excluded liability*” means a tax expense attributable to changes in associated deferred tax liabilities in respect of—
- (a) cost recovery allowances on tangible assets,
@@ -4928,19 +4928,19 @@
- (h) gains from the sale of tangible property located in the same territory as the member that are reinvested in tangible property in the same territory, or
- (i) additional amounts accrued as a result of accounting principle changes with respect to things falling within any of [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/4/a/2023-07-31) to [(h)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/4/h/2023-07-31).
- (i) additional amounts accrued as a result of accounting principle changes with respect to things falling within any of [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/4/a/2023-08-01) to [(h)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/4/h/2023-08-01).
#### Inclusion of existing deferred tax assets and liabilities on entry into regime
##### 185
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/185/2023-07-31) applies to deferred tax assets and deferred tax liabilities of a member of a multinational group as at the beginning of the first accounting period for which Pillar Two rules apply to it that is reflected in its underlying profits accounts (and the adjustments set out in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/185/2023-07-31) apply instead of those set out in [section 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2/2023-07-31) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/7/2023-07-31)).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/185/2023-08-01) applies to deferred tax assets and deferred tax liabilities of a member of a multinational group as at the beginning of the first accounting period for which Pillar Two rules apply to it that is reflected in its underlying profits accounts (and the adjustments set out in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/185/2023-08-01) apply instead of those set out in [section 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2/2023-08-01) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/7/2023-08-01)).
- (2) Each such asset and liability is to be taken into account in determining the member’s deferred tax expense—
- (a) if the nominal tax rate in relation to the asset—
- (i) is less than 15% and [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/3/2023-07-31) does not apply, at its nominal tax rate,
- (i) is less than 15% and [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/3/2023-08-01) does not apply, at its nominal tax rate,
- (ii) is 15% or more, as if the rate of tax to which the asset or liability related was 15%,
@@ -4950,11 +4950,11 @@
- (a) the nominal tax rate in relation to the asset is less than 15%, and
- (b) the member can demonstrate that a deferred tax asset is attributable to the fact of the member having a loss which would have been taken account of in determining adjusted profits had those profits been determined under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31),
- (b) the member can demonstrate that a deferred tax asset is attributable to the fact of the member having a loss which would have been taken account of in determining adjusted profits had those profits been determined under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01),
that asset is to be taken into account in determining the member’s deferred tax expense as if the rate of tax to which the asset related was 15%.
- (4) Where a deferred tax asset relates to a tax credit neither [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/2/a/2023-07-31) nor [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/3/2023-07-31) applies.
- (4) Where a deferred tax asset relates to a tax credit neither [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/2/a/2023-08-01) nor [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/3/2023-08-01) applies.
- (5) If the nominal tax rate that applies on the reversal of such a tax asset exceeds 15%, the amount of the reversal is to be treated as if it were the amount given by multiplying—
@@ -4966,49 +4966,49 @@
- (b) 15%.
- (6) [Subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/7/2023-07-31) applies to a deferred tax asset of a member of a qualifying multinational group that arises—
- (6) [Subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/185/7/2023-08-01) applies to a deferred tax asset of a member of a qualifying multinational group that arises—
- (a) as a result of a transaction made after 30 November 2021 and before the commencement of the first accounting period for which Pillar Two rules apply to it, and
- (b) in relation to an item that either—
- (i) is included in the member’s taxable income but which would not be included in the member’s adjusted profits (had those profits been determined under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)), or
- (ii) is not included in the member’s taxable income but which would be included in the member’s adjusted profits (had those profits been determined under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)).
- (7) A deferred tax asset to which [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/185/7/2023-07-31) applies is to be ignored in determining the member’s deferred tax expense.
- (i) is included in the member’s taxable income but which would not be included in the member’s adjusted profits (had those profits been determined under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)), or
- (ii) is not included in the member’s taxable income but which would be included in the member’s adjusted profits (had those profits been determined under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)).
- (7) A deferred tax asset to which [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/185/7/2023-08-01) applies is to be ignored in determining the member’s deferred tax expense.
#### Deferred tax assets recorded at less than minimum rate
##### 186
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-07-31) applies where the value of a deferred tax asset of a member of a multinational group—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-08-01) applies where the value of a deferred tax asset of a member of a multinational group—
- (a) is calculated on the basis of a tax rate of less than 15%, and
- (b) is attributable to an accounting period in which the member’s adjusted profits were a loss.
- (2) But [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-07-31) only applies in relation to a deferred tax asset if the filing member has made an election for it to apply to the member.
- (3) [Subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/186/4/2023-07-31) applies where the loss for the accounting period upon which the value of that asset was calculated does not exceed the loss established on determining the member’s adjusted profits for that period.
- (4) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/186/4/2023-07-31) applies, the asset is to be treated as having the value it would have if the tax rate upon which it was calculated were 15%.
- (5) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/186/6/2023-07-31) applies where the loss for the accounting period upon which the value of that asset was calculated exceeds the loss established on determining the member’s adjusted profits for that period.
- (2) But [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-08-01) only applies in relation to a deferred tax asset if the filing member has made an election for it to apply to the member.
- (3) [Subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/186/4/2023-08-01) applies where the loss for the accounting period upon which the value of that asset was calculated does not exceed the loss established on determining the member’s adjusted profits for that period.
- (4) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/186/4/2023-08-01) applies, the asset is to be treated as having the value it would have if the tax rate upon which it was calculated were 15%.
- (5) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/186/6/2023-08-01) applies where the loss for the accounting period upon which the value of that asset was calculated exceeds the loss established on determining the member’s adjusted profits for that period.
- (6) The relevant part of the asset is to be treated as having the value of a deferred tax asset generated on the loss established on determining the member’s adjusted profits on the basis of a tax rate of 15%.
- (7) The “relevant part” of the asset means so much of the asset derived from an amount of loss that does not exceed the loss established on determining the member’s adjusted profits.
- (8) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-07-31).
- (8) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-08-01).
#### Election for losses to be treated as special loss deferred tax assets
##### 187
- (1) The filing member of a multinational group may elect that [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-07-31) applies to all of the standard members of the group in a particular territory (“the relevant territory”).
- (2) An election under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/1/2023-07-31)—
- (1) The filing member of a multinational group may elect that [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-08-01) applies to all of the standard members of the group in a particular territory (“the relevant territory”).
- (2) An election under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/1/2023-08-01)—
- (a) must be made having effect for the first accounting period in which the Pillar Two rules apply to any standard member in the relevant territory,
@@ -5016,21 +5016,21 @@
- (c) may not be made for a territory that has an eligible distribution tax system.
- (3) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-07-31) applies to the standard members of a multinational group for an accounting period—
- (3) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-08-01) applies to the standard members of a multinational group for an accounting period—
- (a) none of those members has a total deferred tax adjustment amount for that period, and
- (b) if the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) in relation to those members is nil or less (those members between them have made a loss), the amount of that result (expressed as a positive number) multiplied by 15% is a special loss deferred tax asset of those members.
- (4) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/5/2023-07-31) applies where—
- (a) [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-07-31) applies in relation to the standard members of a multinational group in a territory for an accounting period,
- (b) the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) in relation to those members is greater than nil, and
- (b) if the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) in relation to those members is nil or less (those members between them have made a loss), the amount of that result (expressed as a positive number) multiplied by 15% is a special loss deferred tax asset of those members.
- (4) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/5/2023-08-01) applies where—
- (a) [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-08-01) applies in relation to the standard members of a multinational group in a territory for an accounting period,
- (b) the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) in relation to those members is greater than nil, and
- (c) those members have one or more special loss deferred tax assets.
- (5) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/187/5/2023-07-31) applies, the standard members of the group that have made a profit in that accounting period are to use those assets in that period to increase their covered tax balances in accordance with [subsections (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/6/2023-07-31) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/7/2023-07-31).
- (5) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/187/5/2023-08-01) applies, the standard members of the group that have made a profit in that accounting period are to use those assets in that period to increase their covered tax balances in accordance with [subsections (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/6/2023-08-01) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/7/2023-08-01).
- (6) The amount of the special loss deferred tax assets that is to be used is the lesser of—
@@ -5038,21 +5038,21 @@
- (b) the amount which would cause the effective tax result of the standard members of the group in that territory to be 15%.
Any remainder continues to be a special loss deferred tax asset of the relevant members of the group (and is available for use in subsequent accounting periods where [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/5/2023-07-31) applies).
- (7) Each of the standard members that made a profit in that period is to use the proportion of the amount to be used in accordance with [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/6/2023-07-31) that is equal to the proportion the adjusted profits of the member bears to the total adjusted profits of all of the standard members that made a profit.
Any remainder continues to be a special loss deferred tax asset of the relevant members of the group (and is available for use in subsequent accounting periods where [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/5/2023-08-01) applies).
- (7) Each of the standard members that made a profit in that period is to use the proportion of the amount to be used in accordance with [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/187/6/2023-08-01) that is equal to the proportion the adjusted profits of the member bears to the total adjusted profits of all of the standard members that made a profit.
#### Further provision about elections under section 187
##### 188
- (1) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under section 187.
- (1) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under section 187.
- (2) But that paragraph has effect for the purposes of such an election as if—
- (a) sub-paragraph (4) were omitted (so that there is no restriction on revoking the election), and
- (b) sub-paragraph (5) were omitted (as an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-07-31) cannot be made again once revoked).
- (b) sub-paragraph (5) were omitted (as an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-08-01) cannot be made again once revoked).
### Eligible distribution tax systems: deemed taxes
@@ -5060,11 +5060,11 @@
##### 189
- (1) The filing member of a multinational group may make an election that [section 190](https://www.legislation.gov.uk/ukpga/2023/30/section/190/2023-07-31) (deemed distribution tax) applies to all of the standard members of the group in a particular territory for an accounting period.
- (2) An election under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/189/1/2023-07-31) may only be made in relation to a territory if that territory has an eligible distribution tax system.
- (3) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) “*eligible distribution tax system*” means a system of tax on company profits that—
- (1) The filing member of a multinational group may make an election that [section 190](https://www.legislation.gov.uk/ukpga/2023/30/section/190/2023-08-01) (deemed distribution tax) applies to all of the standard members of the group in a particular territory for an accounting period.
- (2) An election under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/189/1/2023-08-01) may only be made in relation to a territory if that territory has an eligible distribution tax system.
- (3) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) “*eligible distribution tax system*” means a system of tax on company profits that—
- (a) is generally only payable when a company distributes, or is deemed to distribute, those profits to its members, or when it incurs certain non-business expenses,
@@ -5072,21 +5072,21 @@
- (c) was in force on or before 1 July 2021.
- (4) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-07-31).
- (4) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-08-01).
#### Deemed distribution tax amount
##### 190
- (1) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/190/2023-07-31) applies to the standard members of a multinational group in a territory for an accounting period, those members have a deemed distribution tax amount for that period.
- (1) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/190/2023-08-01) applies to the standard members of a multinational group in a territory for an accounting period, those members have a deemed distribution tax amount for that period.
- (2) The deemed distribution tax amount is the lesser of—
- (a) the amount that, when added to the result of Step 4 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31), would result in the effective tax rate of those members for that period being 15%, and
- (a) the amount that, when added to the result of Step 4 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01), would result in the effective tax rate of those members for that period being 15%, and
- (b) the amount of tax that would have been due in that territory if all of those members had distributed all of their profits of that period.
- (3) The combined covered tax balance of those members for that period, as determined under Step 4 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31), is to be increased by adding that deemed distribution tax amount.
- (3) The combined covered tax balance of those members for that period, as determined under Step 4 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01), is to be increased by adding that deemed distribution tax amount.
- (4) In the following accounting period, those members have a “recapture amount” in respect of the previous accounting period that is (initially) equal to the deemed distribution tax amount for that period.
@@ -5096,7 +5096,7 @@
- (b) the time when the recapture amount has reduced to nil.
- (6) [Section 191](https://www.legislation.gov.uk/ukpga/2023/30/section/191/2023-07-31) sets out how recapture amounts reduce.
- (6) [Section 191](https://www.legislation.gov.uk/ukpga/2023/30/section/191/2023-08-01) sets out how recapture amounts reduce.
- (7) If the recapture amount in respect of an accounting period has not reduced to nil by the end of the fourth accounting period after that period the following are to be recalculated for the period in which the recapture amount arose, with the amount of the recapture amount remaining subtracted from the combined covered tax balance (after the addition of the deemed distribution tax amount)—
@@ -5108,7 +5108,7 @@
##### 191
- (1) Where standard members of a multinational group in a territory have a recapture amount in an accounting period (“*the relevant period*”) in respect of a previous accounting period that amount is to be reduced in accordance with [subsections (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/3/2023-07-31) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/5/2023-07-31).
- (1) Where standard members of a multinational group in a territory have a recapture amount in an accounting period (“*the relevant period*”) in respect of a previous accounting period that amount is to be reduced in accordance with [subsections (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/3/2023-08-01) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/5/2023-08-01).
- (2) If those members have more than one recapture amount in the relevant period, those reductions are to be applied first to the recapture amount in respect of the earliest accounting period, then the next earliest and so on.
@@ -5120,13 +5120,13 @@
- (6) An amount is “available” to the extent it has not been used to reduce another recapture amount (in the case of a qualifying carried forward loss, whether in that period or a previous period).
- (7) For the purposes of [subsections (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/3/2023-07-31) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/6/2023-07-31)—
- (7) For the purposes of [subsections (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/3/2023-08-01) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/6/2023-08-01)—
- “*qualifying taxes*” means taxes accrued in the relevant period on actual or deemed distributions of profits;
- members of the group have a “*collective loss*” for an accounting period if the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) is less than nil, and the amount of that loss is that result expressed as a positive number,
- members of the group have a “*qualifying carried forward loss*” if — they had a collective loss in a period, and after making reductions in accordance with [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/2/2023-07-31) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/5/2023-07-31) an amount of that collective loss remains available, and the amount of that qualifying carried forward loss is the amount of the collective loss that remained available.
- members of the group have a “*collective loss*” for an accounting period if the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) is less than nil, and the amount of that loss is that result expressed as a positive number,
- members of the group have a “*qualifying carried forward loss*” if — they had a collective loss in a period, and after making reductions in accordance with [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/2/2023-08-01) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/191/5/2023-08-01) an amount of that collective loss remains available, and the amount of that qualifying carried forward loss is the amount of the collective loss that remained available.
- (8) Any amount of qualifying taxes accrued by a member of the group that is used to reduce a recapture amount is excluded from that member’s covered tax balance.
@@ -5134,7 +5134,7 @@
##### 192
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-07-31) applies where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-08-01) applies where—
- (a) in an accounting period (“*the relevant period*”), a standard member of a multinational group (“*D*”) in a territory (“the relevant territory”)—
@@ -5146,33 +5146,33 @@
- (b) the standard members (including D) of the group in the relevant territory (“the relevant members”) had, in previous accounting periods, one or more recapture amounts (each a “recapture period”).
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-07-31) applies, the following are to be recalculated for each recapture period—
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-08-01) applies, the following are to be recalculated for each recapture period—
- (a) the effective tax rate for the relevant members, and
- (b) the top-up amounts that those members would have in accordance with that recalculation.
- (3) In recalculating that rate and those amounts for each of those periods, deduct the amount of each recapture amount that was outstanding in the period (after any reduction under [section 191](https://www.legislation.gov.uk/ukpga/2023/30/section/191/2023-07-31) in that period) from the combined covered tax balance of those members for the period.
- (4) The relevant members have a special additional top-up tax amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-07-31) for the relevant period that is equal to the sum of the amounts given by—
- (a) subtracting the amount of top-up amounts those members had for each recapture period from the sum of the top-up amounts those members would have for that period as recalculated under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2/b/2023-07-31), and
- (b) multiplying the result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/4/a/2023-07-31) for each recapture period by the disposition recapture ratio for that period.
- (5) Subject to [subsections (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/6/2023-07-31) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/7/2023-07-31), the disposition recapture ratio for an accounting period is the amount given by dividing—
- (3) In recalculating that rate and those amounts for each of those periods, deduct the amount of each recapture amount that was outstanding in the period (after any reduction under [section 191](https://www.legislation.gov.uk/ukpga/2023/30/section/191/2023-08-01) in that period) from the combined covered tax balance of those members for the period.
- (4) The relevant members have a special additional top-up tax amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-08-01) for the relevant period that is equal to the sum of the amounts given by—
- (a) subtracting the amount of top-up amounts those members had for each recapture period from the sum of the top-up amounts those members would have for that period as recalculated under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2/b/2023-08-01), and
- (b) multiplying the result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/4/a/2023-08-01) for each recapture period by the disposition recapture ratio for that period.
- (5) Subject to [subsections (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/6/2023-08-01) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/7/2023-08-01), the disposition recapture ratio for an accounting period is the amount given by dividing—
- (a) the adjusted profits of D in that period, by
- (b) the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) for the relevant members for that period.
- (6) If either of the amounts described in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/5/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/5/b/2023-07-31) of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/5/2023-07-31) is nil or less, the disposition recapture ratio is nil.
- (7) If (ignoring [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/192/7/2023-07-31)) the disposition recapture ratio would be greater than 1, it is to be treated as 1.
- (8) [Sections 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) and [207](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2023-07-31) include further provision about special additional top-up tax amounts under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-07-31).
- (9) Each of the amounts mentioned in [subsection (10)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/10/2023-07-31) for each affected period is to be treated, for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), as the amount given by multiplying—
- (b) the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) for the relevant members for that period.
- (6) If either of the amounts described in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/5/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/5/b/2023-08-01) of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/5/2023-08-01) is nil or less, the disposition recapture ratio is nil.
- (7) If (ignoring [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/192/7/2023-08-01)) the disposition recapture ratio would be greater than 1, it is to be treated as 1.
- (8) [Sections 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) and [207](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2023-08-01) include further provision about special additional top-up tax amounts under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-08-01).
- (9) Each of the amounts mentioned in [subsection (10)](https://www.legislation.gov.uk/ukpga/2023/30/section/192/10/2023-08-01) for each affected period is to be treated, for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), as the amount given by multiplying—
- (a) that amount, by
@@ -5180,7 +5180,7 @@
- (10) Those amounts are—
- (a) the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) for those members for that period;
- (a) the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) for those members for that period;
- (b) the combined covered tax balance of the standard members of the group in the relevant territory;
@@ -5202,17 +5202,17 @@
Take the following steps to determine if a standard member of a multinational group (“the member in question”) has a top-up amount for an accounting period and, if it does, the extent of it—
- *Step 1* Determine, under [section 194](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2023-07-31), the total top-up amount for the accounting period for the territory the member in question is located in.
- *Step 1* Determine, under [section 194](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2023-08-01), the total top-up amount for the accounting period for the territory the member in question is located in.
- *Step 2* If the total top-up amount for that territory is nil, the member in question does not have a top-up amount. Otherwise, proceed to Step 3.
- *Step 3* Determine the adjusted profits of the member in question for the period (in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-07-31)).
- *Step 3* Determine the adjusted profits of the member in question for the period (in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-08-01)).
- *Step 4* If the member has not made a profit for the period (as determined by reference to its adjusted profits), the member in question does not have a top-up amount. Otherwise, proceed to Step 5.
- *Step 5* If there are no other standard members of the multinational group located in the same territory as the member in question, the member’s top-up amount is equal to the total top-up amount for that territory for the period. Otherwise, proceed to Step 6.
- *Step 6* Determine (in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-07-31)) the adjusted profits for the period of all of the other standard members of the group that are located in same territory as the member in question.
- *Step 6* Determine (in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-08-01)) the adjusted profits for the period of all of the other standard members of the group that are located in same territory as the member in question.
- *Step 7* Add together the adjusted profits of all standard members of the group in that territory that have profits (including those of the member in question).
@@ -5226,7 +5226,7 @@
- (1) Take the following steps to determine the total top-up amount for an accounting period for a territory—
- *Step 1* Subtract the effective tax rate of the standard members of the group in that territory for that period (as determined in accordance with [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)) from 15%.
- *Step 1* Subtract the effective tax rate of the standard members of the group in that territory for that period (as determined in accordance with [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)) from 15%.
- *Step 2* If the result of Step 1 is nil or less, the total top-up amount for that territory is nil. Otherwise, proceed to Step 3.
@@ -5238,41 +5238,41 @@
- *Step 6* Multiply the result of Step 1 (which will be a percentage) by the result of Step 4.
- (2) But where those members have a QDT credit for that territory for the accounting period, the total top-up amount is to be reduced in accordance with [subsections (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/4/2023-07-31) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/7/2023-07-31).
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), standard members of a multinational group in a territory have a “QDT credit” for a territory for an accounting period if qualifying domestic top-up tax (see [section 256](https://www.legislation.gov.uk/ukpga/2023/30/section/256/2023-07-31)) is accrued by one or more of those members in that territory in that period.
- (2) But where those members have a QDT credit for that territory for the accounting period, the total top-up amount is to be reduced in accordance with [subsections (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/4/2023-08-01) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/7/2023-08-01).
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), standard members of a multinational group in a territory have a “QDT credit” for a territory for an accounting period if qualifying domestic top-up tax (see [section 256](https://www.legislation.gov.uk/ukpga/2023/30/section/256/2023-08-01)) is accrued by one or more of those members in that territory in that period.
- (4) Where—
- (a) the standard members do not have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for the period, and
- (b) the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-07-31) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
- (a) the standard members do not have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for the period, and
- (b) the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-08-01) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the total top-up amount is to be reduced by the sum of those amounts.
- (5) Where—
- (a) the standard members do not have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for the period, and
- (b) the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-07-31) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in the period,
- (a) the standard members do not have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for the period, and
- (b) the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-08-01) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in the period,
the total top-up amount is to be reduced to nil.
- (6) Where—
- (a) the standard members have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for the period, and
- (b) the sum of the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-07-31) and that collective additional amount is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in the period,
- (a) the standard members have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for the period, and
- (b) the sum of the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-08-01) and that collective additional amount is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in the period,
the total top-up amount is to be reduced to nil.
- (7) Where—
- (a) the standard members have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31), and
- (b) the sum of the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-07-31) and that collective additional amount is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in the period,
the total top-up amount is to be reduced by the amount given by multiplying the sum of those amounts of qualifying domestic top-up tax by the amount given by dividing the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-07-31) by the sum of the result of that step and that collective additional amount.
- (a) the standard members have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01), and
- (b) the sum of the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-08-01) and that collective additional amount is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in the period,
the total top-up amount is to be reduced by the amount given by multiplying the sum of those amounts of qualifying domestic top-up tax by the amount given by dividing the result of Step 6 in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/1/2023-08-01) by the sum of the result of that step and that collective additional amount.
#### Substance based income exclusion
@@ -5288,17 +5288,17 @@
- (2) But if the filing member for the group elects not to calculate the substance based income exclusion for the period, the exclusion is nil.
- (3) Paragraph [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2/2023-07-31).
- (3) Paragraph [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2/2023-08-01).
- (4) The payroll carve-out amount for a member is 5% of the eligible payroll costs incurred by the member in the period.
- (5) The tangible asset carve-out amount for a member is 5% of the eligible tangible asset amount of the member in the period.
- (6) Section [196](https://www.legislation.gov.uk/ukpga/2023/30/section/196/2023-07-31) sets out how to calculate the eligible payroll costs of a member.
- (7) Section [197](https://www.legislation.gov.uk/ukpga/2023/30/section/197/2023-07-31) sets out how to calculate the eligible tangible asset amount of a member.
- (8) Section [198](https://www.legislation.gov.uk/ukpga/2023/30/section/198/2023-07-31) sets out special rules on calculating the eligible payroll costs and eligible tangible asset amount of a member that is a permanent establishment or a flow-through entity.
- (6) Section [196](https://www.legislation.gov.uk/ukpga/2023/30/section/196/2023-08-01) sets out how to calculate the eligible payroll costs of a member.
- (7) Section [197](https://www.legislation.gov.uk/ukpga/2023/30/section/197/2023-08-01) sets out how to calculate the eligible tangible asset amount of a member.
- (8) Section [198](https://www.legislation.gov.uk/ukpga/2023/30/section/198/2023-08-01) sets out special rules on calculating the eligible payroll costs and eligible tangible asset amount of a member that is a permanent establishment or a flow-through entity.
#### Eligible payroll costs
@@ -5334,11 +5334,11 @@
- (a) costs taken into account in determining the underlying profits of a permanent establishment of the member;
- (b) costs taken into account in a carrying value used to calculate the eligible tangible asset amount (see section [197](https://www.legislation.gov.uk/ukpga/2023/30/section/197/2023-07-31));
- (c) costs that are core international shipping costs (see section [157](https://www.legislation.gov.uk/ukpga/2023/30/section/157/2023-07-31));
- (d) costs that are ancillary international shipping costs (see section [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-07-31)), subject to subsections [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/196/5/2023-07-31) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/196/6/2023-07-31).
- (b) costs taken into account in a carrying value used to calculate the eligible tangible asset amount (see section [197](https://www.legislation.gov.uk/ukpga/2023/30/section/197/2023-08-01));
- (c) costs that are core international shipping costs (see section [157](https://www.legislation.gov.uk/ukpga/2023/30/section/157/2023-08-01));
- (d) costs that are ancillary international shipping costs (see section [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-08-01)), subject to subsections [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/196/5/2023-08-01) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/196/6/2023-08-01).
- (5) Where the member has an ancillary international shipping profit cap adjustment of more than nil for the period, only the eligible proportion of costs that are ancillary international shipping costs are excluded costs.
@@ -5358,7 +5358,7 @@
- (b) the sum of the carrying values of each eligible tangible asset held by the member, as those values are recorded at the end of the period.
- (2) Where a value is not recorded at a time referred to in subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/197/1/2023-07-31), the value is to be calculated as if it were recorded at that time.
- (2) Where a value is not recorded at a time referred to in subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/197/1/2023-08-01), the value is to be calculated as if it were recorded at that time.
- (3) “*Recorded*” means recorded for the purposes of preparing the consolidated financial statements of the ultimate parent.
@@ -5366,7 +5366,7 @@
- (a) accumulated depreciation, amortisation or depletion,
- (b) amounts attributable to the capitalisation of eligible payroll costs and costs that would be eligible payroll costs were they not excluded costs under section [196](https://www.legislation.gov.uk/ukpga/2023/30/section/196/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/196/4/2023-07-31), and
- (b) amounts attributable to the capitalisation of eligible payroll costs and costs that would be eligible payroll costs were they not excluded costs under section [196](https://www.legislation.gov.uk/ukpga/2023/30/section/196/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/196/4/2023-08-01), and
- (c) amounts attributable to any purchase accounting adjustment relating to the asset,
@@ -5374,7 +5374,7 @@
- (5) An asset is an eligible tangible asset if it is—
- (a) of a type referred to in subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/197/6/2023-07-31), and
- (a) of a type referred to in subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/197/6/2023-08-01), and
- (b) not an excluded asset.
@@ -5396,9 +5396,9 @@
- (a) property (including land or buildings) that is held for sale, lease or investment (whether such sale, lease or investment is to be carried out in the period or not);
- (b) an asset used in the course of core international shipping activity (see section [157](https://www.legislation.gov.uk/ukpga/2023/30/section/157/2023-07-31));
- (c) an asset used in the course of ancillary international shipping activity (see section [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-07-31)), subject to subsections [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/197/8/2023-07-31) and [(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/197/9/2023-07-31).
- (b) an asset used in the course of core international shipping activity (see section [157](https://www.legislation.gov.uk/ukpga/2023/30/section/157/2023-08-01));
- (c) an asset used in the course of ancillary international shipping activity (see section [158](https://www.legislation.gov.uk/ukpga/2023/30/section/158/2023-08-01)), subject to subsections [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/197/8/2023-08-01) and [(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/197/9/2023-08-01).
- (8) Where the member has an ancillary international shipping profit cap adjustment of more than nil for the period, only the eligible proportion of an asset used in the course of ancillary international shipping activity is to be treated as an excluded asset.
@@ -5414,7 +5414,7 @@
- (1) In calculating the eligible payroll costs and eligible tangible asset amount of a permanent establishment, the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the establishment.
- (2) But if, following the application of subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/198/1/2023-07-31), the value of an eligible tangible asset used in the business of the establishment has not been taken into account in calculating the eligible tangible asset amount of the establishment, the value of that asset is to be taken into account as well.
- (2) But if, following the application of subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/198/1/2023-08-01), the value of an eligible tangible asset used in the business of the establishment has not been taken into account in calculating the eligible tangible asset amount of the establishment, the value of that asset is to be taken into account as well.
- (3) In calculating the eligible payroll costs and eligible tangible asset amount of a flow-through entity, the only amounts to be taken into account are amounts that would be taken into account in determining the adjusted profits of the entity.
@@ -5424,7 +5424,7 @@
- (1) The filing member of a multinational group may elect that the total top-up amount for an accounting period (“*the current period*”) for a territory is to be treated as nil.
- (2) An election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/199/2023-07-31) may be made only if—
- (2) An election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/199/2023-08-01) may be made only if—
- (a) the average revenue for an accounting period of the standard members of the group in that territory is less than 10 million euros, and
@@ -5448,11 +5448,11 @@
- (b) none of the standard members of the group in the territory made a loss in that period.
- (7) Where a qualifying period is longer or shorter than a year, the adjusted profits and revenue of the members are to be treated for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/199/2023-07-31) as the amounts given by multiplying the profits and revenue by the amount given by dividing 365 by the number of days in the period.
- (8) An election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/199/2023-07-31) may not be made in respect of the nominal territory of a stateless member of a multinational group.
- (9) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/199/2023-07-31).
- (7) Where a qualifying period is longer or shorter than a year, the adjusted profits and revenue of the members are to be treated for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/199/2023-08-01) as the amounts given by multiplying the profits and revenue by the amount given by dividing 365 by the number of days in the period.
- (8) An election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/199/2023-08-01) may not be made in respect of the nominal territory of a stateless member of a multinational group.
- (9) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/199/2023-08-01).
### Chapter 7 — Allocating top-up amounts to responsible members
@@ -5460,9 +5460,9 @@
##### 200
- (1) The amount of a top-up amount of a member of a multinational group that is attributed to a responsible member (see [section 128](https://www.legislation.gov.uk/ukpga/2023/30/section/128/2023-07-31)) is found by multiplying the top-up amount by the responsible member’s inclusion ratio for the member whose top-up amount it is.
- (2) Where the responsible member’s (“the first responsible member”) interest in the member is through another responsible member, the first responsible member’s top-up amount is to be reduced (but not below nil) by the amount attributed under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/200/2023-07-31) to that other responsible member.
- (1) The amount of a top-up amount of a member of a multinational group that is attributed to a responsible member (see [section 128](https://www.legislation.gov.uk/ukpga/2023/30/section/128/2023-08-01)) is found by multiplying the top-up amount by the responsible member’s inclusion ratio for the member whose top-up amount it is.
- (2) Where the responsible member’s (“the first responsible member”) interest in the member is through another responsible member, the first responsible member’s top-up amount is to be reduced (but not below nil) by the amount attributed under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/200/2023-08-01) to that other responsible member.
#### Inclusion ratio
@@ -5470,7 +5470,7 @@
- (1) A responsible member’s inclusion ratio for a member with a top-up amount (“the relevant member”) is found as follows—
- *Step 1* Determine the adjusted profits of the relevant member with the top-up amount (in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-07-31)).
- *Step 1* Determine the adjusted profits of the relevant member with the top-up amount (in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-08-01)).
- *Step 2* Determine how much of those profits are attributable to ownership interests held by entities other than the responsible member.
@@ -5478,11 +5478,11 @@
- *Step 4* The inclusion ratio is given by dividing the amount determined under Step 3 by the amount determined under Step 1.
- (2) The amount of profits of the relevant member attributable to ownership interests held by entities other than the responsible member is the amount that would, in hypothetical consolidated financial statements prepared by the responsible member (whether or not it actually prepared consolidated financial statements), have been treated in those statements as attributable to such entities under the principles of the authorised accounting standard used, or treated as used (see [section 249](https://www.legislation.gov.uk/ukpga/2023/30/section/249/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/2023-07-31)[(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/d/2023-07-31)), in the ultimate parent’s consolidated financial statements.
- (2) The amount of profits of the relevant member attributable to ownership interests held by entities other than the responsible member is the amount that would, in hypothetical consolidated financial statements prepared by the responsible member (whether or not it actually prepared consolidated financial statements), have been treated in those statements as attributable to such entities under the principles of the authorised accounting standard used, or treated as used (see [section 249](https://www.legislation.gov.uk/ukpga/2023/30/section/249/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/2023-08-01)[(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/d/2023-08-01)), in the ultimate parent’s consolidated financial statements.
- (3) For the purposes of determining what that amount would be in those hypothetical consolidated financial statements of the responsible member, use the following assumptions—
- (a) the relevant member’s profits were its adjusted profits as determined in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-07-31);
- (a) the relevant member’s profits were its adjusted profits as determined in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-08-01);
- (b) the responsible member had a controlling interest in the relevant member such that all of its income and expenses were consolidated on a line-by-line basis with those of the responsible member;
@@ -5500,25 +5500,25 @@
##### 202
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-07-31) applies to the standard members of a multinational group in a territory (“the relevant territory”) in an accounting period (“*the current period*”) if—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-08-01) applies to the standard members of a multinational group in a territory (“the relevant territory”) in an accounting period (“*the current period*”) if—
- (a) those members do not have a collective loss for the current period, and
- (b) the combined covered tax balance for those members for the current period is less than nil (including as a result of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-07-31) or [section 205](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-07-31) having applied in a previous accounting period).
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-07-31) applies—
- (b) the combined covered tax balance for those members for the current period is less than nil (including as a result of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-08-01) or [section 205](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-08-01) having applied in a previous accounting period).
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-08-01) applies—
- (a) the amount of the combined covered tax balance for the current period is to be added to the combined covered tax balance for the standard members in the relevant territory in the next accounting period in which those members do not have a collective loss (which as the balance for the current period is negative will reduce the combined covered tax balance for that next period), and
- (b) the combined covered tax balance for those members for the current period is to be treated as nil (and as a result of Step 5 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) their effective tax rate for the current period will be 0%).
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-07-31) and [sections 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) to [205](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-07-31), the standard members of a multinational group in a territory have a collective loss for a period if the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) is nil or less for those members for that period.
- (b) the combined covered tax balance for those members for the current period is to be treated as nil (and as a result of Step 5 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) their effective tax rate for the current period will be 0%).
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-08-01) and [sections 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) to [205](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-08-01), the standard members of a multinational group in a territory have a collective loss for a period if the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) is nil or less for those members for that period.
#### Additional top-up amounts where covered taxes less than expected
##### 203
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) applies in an accounting period in relation to standard members of a multinational group in a territory where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) applies in an accounting period in relation to standard members of a multinational group in a territory where—
- (a) those members have a collective loss for that period, and
@@ -5526,47 +5526,47 @@
- (c) the collective negative covered tax balance expressed as a positive number is greater than the amount given by multiplying the collective loss expressed as a positive number by 15% (“the expected covered tax amount”).
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) applies, those members in that territory collectively have an additional top-up amount (a “collective additional amount”) equal to the difference between the expected covered tax amount and the combined covered tax balance.
- (3) Where those members have a QDT credit for the accounting period, the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) is to be reduced in accordance with [subsections (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/4/2023-07-31) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/7/2023-07-31).
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) applies, those members in that territory collectively have an additional top-up amount (a “collective additional amount”) equal to the difference between the expected covered tax amount and the combined covered tax balance.
- (3) Where those members have a QDT credit for the accounting period, the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) is to be reduced in accordance with [subsections (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/4/2023-08-01) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/7/2023-08-01).
- (4) Where—
- (a) the standard members do not have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for the period, and
- (b) the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) (before reduction by relevant QDT credit) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) is to be reduced by the sum of those accrued amounts.
- (a) the standard members do not have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for the period, and
- (b) the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) (before reduction by relevant QDT credit) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) is to be reduced by the sum of those accrued amounts.
- (5) Where—
- (a) the standard members do not have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for the period, and
- (b) the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) (before reduction by relevant QDT credit) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) is to be reduced to nil.
- (a) the standard members do not have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for the period, and
- (b) the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) (before reduction by relevant QDT credit) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) is to be reduced to nil.
- (6) Where—
- (a) the standard members have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for the period, and
- (b) the sum of the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) (before reduction by relevant QDT credit) and the collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) is to be reduced to nil.
- (a) the standard members have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for the period, and
- (b) the sum of the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) (before reduction by relevant QDT credit) and the collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) is to be reduced to nil.
- (7) Where—
- (a) the standard members have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for the period, and
- (b) the sum of the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) (before reduction by relevant QDT credit) and the collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) is to be reduced by the amount given by multiplying the sum of those amounts of qualifying domestic top-up tax by the amount given by dividing the collective additional amount under this section by the sum of that collective additional amount and the collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31).
- (a) the standard members have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for the period, and
- (b) the sum of the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) (before reduction by relevant QDT credit) and the collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) is to be reduced by the amount given by multiplying the sum of those amounts of qualifying domestic top-up tax by the amount given by dividing the collective additional amount under this section by the sum of that collective additional amount and the collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01).
#### Allocation of collective additional amount under section 203 to members
##### 204
- (1) Where the standard members of a multinational group in a territory have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31), an amount of that amount is to be allocated to each member that has a negative covered tax balance, expressed as a negative number, which is less than the adjusted profits of that member (which may be positive or negative) multiplied by 15%.
- (1) Where the standard members of a multinational group in a territory have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01), an amount of that amount is to be allocated to each member that has a negative covered tax balance, expressed as a negative number, which is less than the adjusted profits of that member (which may be positive or negative) multiplied by 15%.
- (2) To determine the amount of the collective additional amount to be allocated to each such member, take the following steps—
@@ -5578,25 +5578,25 @@
- *Step 4* Allocate to each member the amount given by multiplying the result of Step 3 for that member by the collective additional amount.
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), an amount of a collective additional amount allocated to a member of a multinational group under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/204/2023-07-31) is an additional top-up amount.
- (4) [Chapter 7](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/7/2023-07-31) (allocation of top-up amounts to responsible members) applies to an additional top-up amount allocated to a member of a multinational group under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) as it applies to a top-up amount of that member as if the adjusted profits of that member were the amount given by dividing the additional top-up amount by 15%.
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), an amount of a collective additional amount allocated to a member of a multinational group under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/204/2023-08-01) is an additional top-up amount.
- (4) [Chapter 7](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/7/2023-08-01) (allocation of top-up amounts to responsible members) applies to an additional top-up amount allocated to a member of a multinational group under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) as it applies to a top-up amount of that member as if the adjusted profits of that member were the amount given by dividing the additional top-up amount by 15%.
#### Election to carry forward and reduce collective additional amount
##### 205
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-07-31) applies where the standard members of a multinational group in a territory (“the relevant territory”) have a collective additional amount for an accounting period (“*the current period*”) and the filing member of the group has elected for this section to apply for that period.
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-07-31) applies—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-08-01) applies where the standard members of a multinational group in a territory (“the relevant territory”) have a collective additional amount for an accounting period (“*the current period*”) and the filing member of the group has elected for this section to apply for that period.
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-08-01) applies—
- (a) the qualifying amount of the collective additional amount for the current period is to be subtracted from the combined covered tax balance for the standard members of the group in the relevant territory in the next accounting period in which those members do not have a collective loss, and
- (b) the collective additional amount for the current period is to be reduced by the qualifying amount of that collective additional amount (including to nil where the whole amount is qualifying).
- (3) The amount of the collective additional amount that is “qualifying” is the amount given by subtracting the amount of any deferred tax asset deemed to arise under [section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/7/2023-07-31) for the period.
- (4) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-07-31).
- (3) The amount of the collective additional amount that is “qualifying” is the amount given by subtracting the amount of any deferred tax asset deemed to arise under [section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/7/2023-08-01) for the period.
- (4) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-08-01).
### Additional top-up amounts on recalculations
@@ -5604,81 +5604,81 @@
##### 206
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) applies to the standard members of a multinational group in an accounting period (“*the current period*”) in a territory where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) applies to the standard members of a multinational group in an accounting period (“*the current period*”) in a territory where—
- (a) a recalculation is required in the current period in relation to one or more previous accounting periods (each a “prior period”) as a result of any of the following sections—
- (i) [section 163](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/163/4/2023-07-31);
- (ii) [section 184](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2/2023-07-31);
- (iii) [section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-07-31);
- (iv) [section 219](https://www.legislation.gov.uk/ukpga/2023/30/section/219/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/219/1/2023-07-31), or
- (b) the members have a special additional top-up tax amount under [section 192](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-07-31) for the current period.
- (i) [section 163](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/163/4/2023-08-01);
- (ii) [section 184](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2/2023-08-01);
- (iii) [section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-08-01);
- (iv) [section 219](https://www.legislation.gov.uk/ukpga/2023/30/section/219/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/219/1/2023-08-01), or
- (b) the members have a special additional top-up tax amount under [section 192](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-08-01) for the current period.
- (2) Where—
- (a) the sum of the top-up amounts that those members would have for a prior period, determined in accordance with a recalculation required under one of the sections mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/a/2023-07-31), is greater than the sum of the top-up amounts those members had for that prior period, or
- (b) [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) applies as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/b/2023-07-31) (whether or not it also applies as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/a/2023-07-31)),
the members collectively have an additional top-up amount (a “collective additional amount”) under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for the current period.
- (3) Take the following steps to determine the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31)—
- *Step 1* Where one or more recalculations are required in accordance with any of the sections mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/a/2023-07-31), for each prior period carry out the recalculation or recalculations required in respect of that period to establish the top-up amounts those members would have had for the prior period (taking account of all recalculations required for that period).
- (a) the sum of the top-up amounts that those members would have for a prior period, determined in accordance with a recalculation required under one of the sections mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/a/2023-08-01), is greater than the sum of the top-up amounts those members had for that prior period, or
- (b) [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) applies as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/b/2023-08-01) (whether or not it also applies as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/a/2023-08-01)),
the members collectively have an additional top-up amount (a “collective additional amount”) under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for the current period.
- (3) Take the following steps to determine the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01)—
- *Step 1* Where one or more recalculations are required in accordance with any of the sections mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/1/a/2023-08-01), for each prior period carry out the recalculation or recalculations required in respect of that period to establish the top-up amounts those members would have had for the prior period (taking account of all recalculations required for that period).
- *Step 2* For each prior period, subtract the sum of the top-up amounts those members had for that prior period from the sum of top-up amounts that those members would have for that period.
- *Step 3* Add together all of the results of Step 2 that are greater than nil.
- *Step 4* Where the members have a special additional top-up tax amount under [section 192](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-07-31) for the current period, add that amount to the result of Step 2 (which may be nil).
- (4) Where those members have a QDT credit for the accounting period, the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) is to be reduced in accordance with [subsections (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/5/2023-07-31) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/8/2023-07-31).
- *Step 4* Where the members have a special additional top-up tax amount under [section 192](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-08-01) for the current period, add that amount to the result of Step 2 (which may be nil).
- (4) Where those members have a QDT credit for the accounting period, the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) is to be reduced in accordance with [subsections (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/5/2023-08-01) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/8/2023-08-01).
- (5) Where—
- (a) the standard members do not have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) for the period,
- (a) the standard members do not have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) for the period,
- (b) the total top-up amount for the current period for the members for the members’ territory is nil, and
- (c) the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) (before reduction by relevant QDT credit) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) is to be reduced by the sum of those accrued amounts.
- (c) the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) (before reduction by relevant QDT credit) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) is to be reduced by the sum of those accrued amounts.
- (6) Where—
- (a) the standard members do not have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) for the period,
- (a) the standard members do not have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) for the period,
- (b) the total top-up amount for the current period for the standard members in the territory is nil, and
- (c) the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) (before reduction by relevant QDT credit) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) is to be reduced to nil.
- (c) the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) (before reduction by relevant QDT credit) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) is to be reduced to nil.
- (7) Where—
- (a) the standard members have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) for the period or the total top-up amount for the current period for members for the members’ territory is greater than nil, and
- (b) the sum of the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) (before reduction by relevant QDT credit), any collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) and the total top-up amount for the current period for the members for the member’s territory is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) is to be reduced to nil.
- (a) the standard members have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) for the period or the total top-up amount for the current period for members for the members’ territory is greater than nil, and
- (b) the sum of the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) (before reduction by relevant QDT credit), any collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) and the total top-up amount for the current period for the members for the member’s territory is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) is to be reduced to nil.
- (8) Where—
- (a) the standard members have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) for the period or the total top-up amount for the current period for members for the members’ territory is greater than nil, and
- (b) the sum of the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) (before reduction by relevant QDT credit), any collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) and the total top-up amount for the current period for the members for the member’s territory is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) is to be reduced by the amount given by multiplying the sum of those amounts of qualifying domestic top-up tax by the amount given by dividing the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) by the sum of that collective additional amount, any collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) and the total-up up amount for the current period.
- (a) the standard members have a collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) for the period or the total top-up amount for the current period for members for the members’ territory is greater than nil, and
- (b) the sum of the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) (before reduction by relevant QDT credit), any collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) and the total top-up amount for the current period for the members for the member’s territory is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) is to be reduced by the amount given by multiplying the sum of those amounts of qualifying domestic top-up tax by the amount given by dividing the collective additional amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) by the sum of that collective additional amount, any collective additional amount under [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) and the total-up up amount for the current period.
#### Allocation of collective additional amounts under section 206 to members
##### 207
- (1) Where the standard members of a multinational group in a territory have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) for an accounting period (“*the current period*”), that amount is to be allocated to those members as follows—
- (1) Where the standard members of a multinational group in a territory have a collective additional amount under [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) for an accounting period (“*the current period*”), that amount is to be allocated to those members as follows—
- *Step 1* Determine the sum of the top-up amounts that those members would have (in prior accounting periods) in accordance with the recalculation, or recalculations, that relate to that collective additional amount.
@@ -5686,13 +5686,13 @@
- *Step 3* For each member where the result of Step 2 is greater than nil, divide that result by the result of step 1.
- *Step 4* Each such member has an additional top-up amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2023-07-31) equal to the amount given by multiplying the collective additional amount by the result of Step 3 for that member.
- (2) [Chapter 7](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/7/2023-07-31) (allocation of top-up amounts to responsible members)—
- (a) applies to an additional top-up amount allocated to a member of a multinational group under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) as it applies to a top-up amount of that member, and
- (b) if the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) in relation to the standard members of the group for the current period is nil or less (those members between them have made a loss), has effect as if the adjusted profits of that member were the amount given by dividing the additional top-up amount by 15%.
- *Step 4* Each such member has an additional top-up amount under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2023-08-01) equal to the amount given by multiplying the collective additional amount by the result of Step 3 for that member.
- (2) [Chapter 7](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/7/2023-08-01) (allocation of top-up amounts to responsible members)—
- (a) applies to an additional top-up amount allocated to a member of a multinational group under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) as it applies to a top-up amount of that member, and
- (b) if the result of Step 2 in [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) in relation to the standard members of the group for the current period is nil or less (those members between them have made a loss), has effect as if the adjusted profits of that member were the amount given by dividing the additional top-up amount by 15%.
### Restructuring of groups
@@ -5700,7 +5700,7 @@
##### 208
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/2/2023-07-31) applies to an entity where, in an accounting period (“the transfer period”) of a multinational group, the entity—
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/2/2023-08-01) applies to an entity where, in an accounting period (“the transfer period”) of a multinational group, the entity—
- (a) becomes a member of that multinational group (including, where it was previously a member of a different group, as a result of it becoming the ultimate parent of a new group), or
@@ -5708,35 +5708,35 @@
- (2) The entity is to be treated as a member of that group for the whole of the transfer period (whether or not that results in it being treated as a member of two or more groups) if any portion of its assets, liabilities, income, expenses or cash flows are included on a line-by-line basis in the consolidated financial statements of the ultimate parent for that period.
- (3) But in applying [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) in relation to the entity as a member of the multinational group it has become or ceased to be a member of, only its profits, covered taxes and (where applicable) eligible payroll costs that are taken into account in the consolidated financial statements of the ultimate parent are to be taken account of.
- (3) But in applying [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) in relation to the entity as a member of the multinational group it has become or ceased to be a member of, only its profits, covered taxes and (where applicable) eligible payroll costs that are taken into account in the consolidated financial statements of the ultimate parent are to be taken account of.
- (4) Any purchase accounting consolidation adjustments arising from the transfer of the ownership interests resulting in an entity becoming a member of a multinational group are to be ignored in determining the adjusted profits and covered tax balance of that entity as a member of that group in the transfer period and in subsequent accounting periods.
- (5) When (where applicable) determining the eligible tangible asset amount of an entity that becomes a member of a multinational group as a member of that group in the transfer period, adjust that amount by multiplying it by the amount given by dividing the number of days in the post-transfer period by the number of days in the transfer period.
- (6) For the purposes of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/5/2023-07-31) the “*post-transfer period*” means the period beginning with the day on which the member became or (as the case may be) ceased to be a member of a multinational group and ending with the last day of the transfer period.
- (6) For the purposes of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/5/2023-08-01) the “*post-transfer period*” means the period beginning with the day on which the member became or (as the case may be) ceased to be a member of a multinational group and ending with the last day of the transfer period.
- (7) When (where applicable) determining the eligible tangible asset amount of an entity that ceased to be a member of a multinational group as a member of that group in the transfer period, adjust that amount by multiplying it by the amount given by dividing the number of days in the pre-transfer period by the number of days in the transfer period.
- (8) For the purposes of [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/7/2023-07-31) the “*pre-transfer period*” means the period beginning with the commencement of the transfer period and ending with the day before the day on which the ownership interests were transferred.
- (9) [Subsections (10)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/10/2023-07-31) and [(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/11/2023-07-31) apply where an entity that becomes a member of a multinational group (“group A”) as a result of a transfer of direct or indirect ownership interests in it was a member of another multinational group immediately before the transfer (“group B”).
- (8) For the purposes of [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/7/2023-08-01) the “*pre-transfer period*” means the period beginning with the commencement of the transfer period and ending with the day before the day on which the ownership interests were transferred.
- (9) [Subsections (10)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/10/2023-08-01) and [(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/208/11/2023-08-01) apply where an entity that becomes a member of a multinational group (“group A”) as a result of a transfer of direct or indirect ownership interests in it was a member of another multinational group immediately before the transfer (“group B”).
- (10) The amount of deferred tax assets and tax liabilities (which for these purposes does not include a special loss deferred tax asset) of the entity that existed immediately before the transfer to be taken into account in relation to that entity as a member of group A is the amount that would have been taken into account had group A had a controlling interest in the entity at the time the assets and liabilities arose.
- (11) Where a deferred tax liability of the entity was included in the total deferred tax adjustment amount for that member in group B—
- (a) that deferred tax liability is to be deemed to have reversed without the need to reflect the reversal in any calculation made for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) in relation to group B, and
- (a) that deferred tax liability is to be deemed to have reversed without the need to reflect the reversal in any calculation made for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) in relation to group B, and
- (b) the deferred tax liability is to be treated as arising in the transfer period for the purpose of determining the total deferred tax adjustment amount for the member in group A,
- (c) any resulting reduction in the covered tax balance of the entity as a member of group A (see [sections 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-07-31) and [184](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2023-07-31)) is only to have effect in the accounting period in which the deferred tax liability is recaptured.
- (c) any resulting reduction in the covered tax balance of the entity as a member of group A (see [sections 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-08-01) and [184](https://www.legislation.gov.uk/ukpga/2023/30/section/184/2023-08-01)) is only to have effect in the accounting period in which the deferred tax liability is recaptured.
#### When transfer of controlling interest treated as acquisition of assets and liabilities
##### 209
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/209/2023-07-31) applies to the acquisition or disposal of a controlling interest in a member of a multinational group where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/209/2023-08-01) applies to the acquisition or disposal of a controlling interest in a member of a multinational group where—
- (a) the acquisition or disposal of that controlling interest is treated in the same, or a similar manner, as a transfer of assets and liabilities of the member (rather than ownership interests in it) by—
@@ -5746,7 +5746,7 @@
- (b) that territory imposes a covered tax on the seller based on the difference between the tax basis and either the consideration paid in exchange for the controlling interest or the fair value of the assets and liabilities.
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/209/2023-07-31) applies to an acquisition or disposal of a controlling interest in a member of a multinational group, that acquisition or disposal is to be treated as an acquisition or disposal of the assets and liabilities of the member (and accordingly, [section 208](https://www.legislation.gov.uk/ukpga/2023/30/section/208/2023-07-31) will not apply in relation to that transfer).
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/209/2023-08-01) applies to an acquisition or disposal of a controlling interest in a member of a multinational group, that acquisition or disposal is to be treated as an acquisition or disposal of the assets and liabilities of the member (and accordingly, [section 208](https://www.legislation.gov.uk/ukpga/2023/30/section/208/2023-08-01) will not apply in relation to that transfer).
- (3) Any covered tax arising in relation to the disposal of a controlling interest in a member of a multinational group described in subsection (1)(b) is to included in the covered tax balance of that member.
@@ -5754,9 +5754,9 @@
##### 210
- (1) Where a member of a multinational group transfers assets or liabilities to another entity in the course of a qualifying reorganisation (see [section 212](https://www.legislation.gov.uk/ukpga/2023/30/section/212/2023-07-31)), any gain or loss on the transfer is to be excluded from the adjusted profits of the member, except to the extent it is a non-qualifying gain or loss.
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/210/2023-07-31), and in [sections 211](https://www.legislation.gov.uk/ukpga/2023/30/section/211/2023-07-31) and [212](https://www.legislation.gov.uk/ukpga/2023/30/section/212/2023-07-31), “*non-qualifying gain or loss*” means a gain or loss of the transferee on the transfer of assets or liabilities, and is the lesser of—
- (1) Where a member of a multinational group transfers assets or liabilities to another entity in the course of a qualifying reorganisation (see [section 212](https://www.legislation.gov.uk/ukpga/2023/30/section/212/2023-08-01)), any gain or loss on the transfer is to be excluded from the adjusted profits of the member, except to the extent it is a non-qualifying gain or loss.
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/210/2023-08-01), and in [sections 211](https://www.legislation.gov.uk/ukpga/2023/30/section/211/2023-08-01) and [212](https://www.legislation.gov.uk/ukpga/2023/30/section/212/2023-08-01), “*non-qualifying gain or loss*” means a gain or loss of the transferee on the transfer of assets or liabilities, and is the lesser of—
- (a) the amount of that gain or loss that is subject to tax in the territory the transferee is located in, and
@@ -5768,19 +5768,19 @@
- (1) Where there has been a transfer of assets or liabilities to a member of a multinational group—
- (a) if the transfer forms part of a qualifying reorganisation (see [section 212](https://www.legislation.gov.uk/ukpga/2023/30/section/212/2023-07-31)), the value of the assets or liabilities is, for the purpose of determining the adjusted profits of the member, the carrying value of the assets or liabilities in the hands of the transferor immediately before the transfer, or
- (b) otherwise, the value of the assets or liabilities, for that purpose, is the carrying value of the assets or liabilities immediately after the transfer as determined under the accounting standard used in determining the underlying profits of the member for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) and subject to the adjustments to those profits made in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-07-31).
- (2) But [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/211/3/2023-07-31) applies where—
- (a) [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/211/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/211/1/b/2023-07-31) applies to the transfer,
- (a) if the transfer forms part of a qualifying reorganisation (see [section 212](https://www.legislation.gov.uk/ukpga/2023/30/section/212/2023-08-01)), the value of the assets or liabilities is, for the purpose of determining the adjusted profits of the member, the carrying value of the assets or liabilities in the hands of the transferor immediately before the transfer, or
- (b) otherwise, the value of the assets or liabilities, for that purpose, is the carrying value of the assets or liabilities immediately after the transfer as determined under the accounting standard used in determining the underlying profits of the member for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) and subject to the adjustments to those profits made in accordance with [Chapter 4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-08-01).
- (2) But [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/211/3/2023-08-01) applies where—
- (a) [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/211/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/211/1/b/2023-08-01) applies to the transfer,
- (b) the transfer is from another member of the group, and
- (c) neither a gain nor a loss is recorded in the underlying profits accounts of the transferor in respect of that transfer.
- (3) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/149/6/2023-07-31) applies the adjusted profits of both the transferor and the transferee are to be adjusted to secure that the transfer is reflected on an arm’s length basis (see [section 149](https://www.legislation.gov.uk/ukpga/2023/30/section/149/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/149/7/2023-07-31)).
- (3) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/149/6/2023-08-01) applies the adjusted profits of both the transferor and the transferee are to be adjusted to secure that the transfer is reflected on an arm’s length basis (see [section 149](https://www.legislation.gov.uk/ukpga/2023/30/section/149/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/149/7/2023-08-01)).
- (4) Where a member of a multinational group transfers assets or liabilities to another entity in the course of a qualifying reorganisation, and recognises a non-qualifying gain or loss as a result of that transfer—
@@ -5792,7 +5792,7 @@
##### 212
- (1) For the purposes of [sections 210](https://www.legislation.gov.uk/ukpga/2023/30/section/210/2023-07-31) and [211](https://www.legislation.gov.uk/ukpga/2023/30/section/211/2023-07-31), a transfer of assets or liabilities is made in the course of a qualifying reorganisation if the transfer takes place as a result of a merger, de-merger, liquidation or a change in form of an entity, or a similar event, and conditions A, B and C are met.
- (1) For the purposes of [sections 210](https://www.legislation.gov.uk/ukpga/2023/30/section/210/2023-08-01) and [211](https://www.legislation.gov.uk/ukpga/2023/30/section/211/2023-08-01), a transfer of assets or liabilities is made in the course of a qualifying reorganisation if the transfer takes place as a result of a merger, de-merger, liquidation or a change in form of an entity, or a similar event, and conditions A, B and C are met.
- (2) Condition A is that—
@@ -5850,7 +5850,7 @@
- (2) For the purposes of determining whether O has ownership interests in M, only interests that give rise to a share of profits are to be taken into account.
- (3) An investment entity tax transparency election is an election that, for the purposes of sections [168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-07-31) (underlying profits of transparent entities) and [178](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-07-31) (covered taxes of transparent entities)—
- (3) An investment entity tax transparency election is an election that, for the purposes of sections [168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-08-01) (underlying profits of transparent entities) and [178](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-08-01) (covered taxes of transparent entities)—
- (a) M is to be treated as a flow-through entity,
@@ -5858,11 +5858,11 @@
- (c) O is to be treated as having direct ownership interests in M.
- (4) To determine the percentage of direct ownership interest O is to be treated as having in M, section [246](https://www.legislation.gov.uk/ukpga/2023/30/section/246/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/2023-07-31) applies as if paragraph [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/b/2023-07-31) were omitted, and for those purposes only interests that give rise in a share of profits are relevant.
- (4) To determine the percentage of direct ownership interest O is to be treated as having in M, section [246](https://www.legislation.gov.uk/ukpga/2023/30/section/246/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/2023-08-01) applies as if paragraph [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/b/2023-08-01) were omitted, and for those purposes only interests that give rise in a share of profits are relevant.
- (5) The filing member may only make such an election if—
- (a) an election under section [214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-07-31) is not in effect in relation to M and O, and
- (a) an election under section [214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-08-01) is not in effect in relation to M and O, and
- (b) either—
@@ -5876,9 +5876,9 @@
- (b) it is wholly owned by persons with which it has entered into insurance contracts.
- (7) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under this section.
- (8) Subsection [(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/213/9/2023-07-31) applies where—
- (7) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under this section.
- (8) Subsection [(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/213/9/2023-08-01) applies where—
- (a) an election under this section has been revoked, and
@@ -5886,7 +5886,7 @@
- (9) In determining those profits, the value of any gain or loss from the disposition of an asset or liability by M is to be determined by reference to the fair value of the asset or liability as at the first day of the revocation period.
- (10) Subsection [(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/213/11/2023-07-31) applies where—
- (10) Subsection [(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/213/11/2023-08-01) applies where—
- (a) an election under this section has been revoked, and
@@ -5910,7 +5910,7 @@
- (2) The filing member may only make such an election if—
- (a) an election under section [213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-07-31) is not in effect in relation to the owner,
- (a) an election under section [213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-08-01) is not in effect in relation to the owner,
- (b) the owner is not itself an investment entity, and
@@ -5926,17 +5926,17 @@
- (4) If an election is made under this section—
- (a) an undistributed income amount for the entity for an accounting period is to be determined under section [215](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-07-31), and
- (b) any positive undistributed income amount is to be added to the top-up amount of that entity as determined under section [220](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/220/1/2023-07-31) (see section [220](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2/2023-07-31)).
- (5) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under this section.
- (6) Subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/214/7/2023-07-31) applies where—
- (a) an undistributed income amount for the entity for an accounting period is to be determined under section [215](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-08-01), and
- (b) any positive undistributed income amount is to be added to the top-up amount of that entity as determined under section [220](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/220/1/2023-08-01) (see section [220](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2/2023-08-01)).
- (5) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under this section.
- (6) Subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/214/7/2023-08-01) applies where—
- (a) an election under this section has been revoked, and
- (b) the adjusted profits of the investment entity fall to be determined under section [220](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2023-07-31) for the first accounting period in respect of which the election no longer applies.
- (b) the adjusted profits of the investment entity fall to be determined under section [220](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2023-08-01) for the first accounting period in respect of which the election no longer applies.
- (7) Those profits are to include any positive undistributed income amount for the entity for the previous accounting period.
@@ -5944,11 +5944,11 @@
##### 215
- (1) The undistributed income amount for an investment entity for an accounting period is the entity’s adjusted profits for the income period less the amounts referred to in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2/2023-07-31).
- (1) The undistributed income amount for an investment entity for an accounting period is the entity’s adjusted profits for the income period less the amounts referred to in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2/2023-08-01).
- (2) The amounts are—
- (a) the covered taxes payable by the entity (determined in accordance with [Chapter 5](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/5/2023-07-31)) in the income period;
- (a) the covered taxes payable by the entity (determined in accordance with [Chapter 5](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/5/2023-08-01)) in the income period;
- (b) distributions and deemed distributions paid by the entity and received by shareholders other than other investment entities in the review period;
@@ -5956,9 +5956,9 @@
- (d) the investment loss carry-forward amount for the review period.
- (3) But an amount referred to in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2/2023-07-31) is not to be deducted from the undistributed income amount for an accounting period if it has already been deducted from the undistributed income amount for a previous accounting period.
- (4) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-07-31)—
- (3) But an amount referred to in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2/2023-08-01) is not to be deducted from the undistributed income amount for an accounting period if it has already been deducted from the undistributed income amount for a previous accounting period.
- (4) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-08-01)—
- (a) the “income period” is the third accounting period before the accounting period for which the undistributed income amount falls to be determined;
@@ -5978,13 +5978,13 @@
##### 216
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/216/2023-07-31) applies to a member of a multinational group if the filing member has made an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/216/2023-07-31) in respect of a relevant tax adjustment made in an accounting period (“the adjustment period”) in relation to that member.
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/216/2023-08-01) applies to a member of a multinational group if the filing member has made an election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/216/2023-08-01) in respect of a relevant tax adjustment made in an accounting period (“the adjustment period”) in relation to that member.
- (2) A “relevant tax adjustment” is an adjustment to the value of assets or liabilities of a member of a multinational group for tax purposes so that they reflect fair value that is required or permitted, under the law of the territory the member is located in, as a result of the occurrence of an event.
- (3) But adjustments made in connection with transfer pricing, or in connection with the sale of assets in the course of carrying on a trade, are not relevant tax adjustments.
- (4) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/216/2023-07-31) applies to the member—
- (4) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/216/2023-08-01) applies to the member—
- (a) the member has an adjustment amount in respect of each asset or liability that is subject to the relevant adjustment, and
@@ -6002,31 +6002,31 @@
- (a) subtracting the carrying value of the asset or liability immediately before the event that caused, or enabled, the adjustment to be made from the fair value of the asset immediately after occurrence of that event, and
- (b) if that event resulted in a non-qualifying gain or loss (within the meaning given by [section 210](https://www.legislation.gov.uk/ukpga/2023/30/section/210/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/210/2/2023-07-31)) for the member—
- (b) if that event resulted in a non-qualifying gain or loss (within the meaning given by [section 210](https://www.legislation.gov.uk/ukpga/2023/30/section/210/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/210/2/2023-08-01)) for the member—
- (i) in the case of a non-qualifying gain, reducing the result of paragraph (a) by the amount of that gain, or
- (ii) in the case of a non-qualifying loss, increasing the result of paragraph (a) by the amount of that loss.
- (8) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under this section.
- (8) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under this section.
#### Post filing adjustments of covered taxes
##### 217
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-07-31) applies where, in an accounting period (“*the current period*”), the liability of a member of a multinational group to covered taxes for a prior accounting period (“the prior period”) as reflected in an information return, overseas information return or self-assessment return (see [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)) has increased or decreased.
- (2) [Subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/4/2023-07-31) applies where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-08-01) applies where, in an accounting period (“*the current period*”), the liability of a member of a multinational group to covered taxes for a prior accounting period (“the prior period”) as reflected in an information return, overseas information return or self-assessment return (see [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)) has increased or decreased.
- (2) [Subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/4/2023-08-01) applies where—
- (a) that liability has increased, or
- (b) that liability has decreased and the decrease is to be treated as insignificant.
- (3) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-07-31) applies where that liability has decreased, unless the decrease is to be treated as insignificant.
- (4) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/217/4/2023-07-31) applies, the covered tax balance of the member for the current period is to be adjusted so as to reflect the amount of that increase or decrease if not already reflected in that balance.
- (5) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-07-31) applies—
- (3) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-08-01) applies where that liability has decreased, unless the decrease is to be treated as insignificant.
- (4) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/217/4/2023-08-01) applies, the covered tax balance of the member for the current period is to be adjusted so as to reflect the amount of that increase or decrease if not already reflected in that balance.
- (5) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-08-01) applies—
- (a) the following are to be recalculated for the prior period to take account of the decrease—
@@ -6036,13 +6036,13 @@
- (iii) if the liability to covered taxes has decreased because of a reduction of the member’s profits, its adjusted profits but only to the extent necessary to prevent the effective tax rate from decreasing,
- (b) the adjusted profits of those members in subsequent accounting periods are to be adjusted in consequence of the decrease, and the matters referred to in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/a/2023-07-31) recalculated accordingly, and
- (b) the adjusted profits of those members in subsequent accounting periods are to be adjusted in consequence of the decrease, and the matters referred to in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/a/2023-08-01) recalculated accordingly, and
- (c) if the amount of the decrease is reflected in the covered tax balance of the member for the current period, that balance is to be adjusted to exclude it.
- (6) [Section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) applies to a recalculation under [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-07-31).
- (7) Where [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-07-31) applies in relation to a decrease in liability to covered taxes that arises as a result of the member offsetting a loss in a later accounting period against profits in the prior period, the member is treated for the purposes of this Part—
- (6) [Section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) applies to a recalculation under [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-08-01).
- (7) Where [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/5/2023-08-01) applies in relation to a decrease in liability to covered taxes that arises as a result of the member offsetting a loss in a later accounting period against profits in the prior period, the member is treated for the purposes of this Part—
- (a) as having a deferred tax asset that arises in the later period that is equal to the amount offset multiplied by the lesser of—
@@ -6052,13 +6052,13 @@
- (b) as having used that asset in the prior accounting period.
- (8) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-07-31), a decrease of liability is to be treated as insignificant if—
- (8) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-08-01), a decrease of liability is to be treated as insignificant if—
- (a) the aggregate decrease in liability for covered taxes for the prior period is less than 1 million euros, and
- (b) the filing member has made an election for decreases in the prior period to be treated as insignificant.
[Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/217/8/2023-07-31).
[Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/217/8/2023-08-01).
#### Effect of rate changes to deferred tax expense
@@ -6072,7 +6072,7 @@
- (c) the effect of the rate change would reduce the member’s covered tax balance in a previous accounting period if the deferred tax expense in that period were recalculated to take account of the change in the rate,
[section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-07-31) applies to so much of that reduction as reflects the extent of the change in rate that is relevant as it applies to a decrease in liability to covered taxes.
[section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-08-01) applies to so much of that reduction as reflects the extent of the change in rate that is relevant as it applies to a decrease in liability to covered taxes.
- (2) Where—
@@ -6084,9 +6084,9 @@
- (d) the effect of the rate change would increase the member’s covered tax balance in a previous accounting period if the deferred tax expense in that period were recalculated to take account of the change in the rate,
[section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-07-31) applies to so much of that increase as reflects the extent of the change in rate that is relevant as it applies to a increase in liability to covered taxes.
- (3) For the purposes of [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/218/1/2023-07-31) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/218/2/2023-07-31), a change of a rate of tax is relevant to the extent that—
[section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-08-01) applies to so much of that increase as reflects the extent of the change in rate that is relevant as it applies to a increase in liability to covered taxes.
- (3) For the purposes of [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/218/1/2023-08-01) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/218/2/2023-08-01), a change of a rate of tax is relevant to the extent that—
- (a) in the case of a rate that is increasing, it reflects an increase from below 15% to the lesser of—
@@ -6110,9 +6110,9 @@
- (b) the top-up amounts that those members would have.
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/219/1/2023-07-31) does not apply unless the total of amounts included in the covered tax balance for that accounting period which are not paid before the end of that 3 year period exceeds 1 million euros.
- (3) [Section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) applies to a recalculation under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/219/1/2023-07-31).
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/219/1/2023-08-01) does not apply unless the total of amounts included in the covered tax balance for that accounting period which are not paid before the end of that 3 year period exceeds 1 million euros.
- (3) [Section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) applies to a recalculation under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/219/1/2023-08-01).
### Chapter 9 — Special provision for investment entities, joint venture groups and minority-owned members
@@ -6122,25 +6122,25 @@
##### 220
- (1) The top-up amount for an accounting period of a member of a multinational group that is an investment entity is, subject to subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2/2023-07-31), determined by taking the following steps—
- (1) The top-up amount for an accounting period of a member of a multinational group that is an investment entity is, subject to subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2/2023-08-01), determined by taking the following steps—
- *Step 1* Determine the adjusted profits (if any) of the entity for the period in accordance with Chapter 4. If the adjusted profits are nil or less, the top-up amount is nil. Otherwise, proceed to Step 2.
- *Step 2* Adjust the result of Step 1 in accordance with section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-07-31) (to the extent applicable). If the adjusted result is nil, the top-up amount is nil. Otherwise, proceed to Step 3.
- *Step 3* Determine the substance-based income exclusion for the entity for the period (see section [221](https://www.legislation.gov.uk/ukpga/2023/30/section/221/2023-07-31)).
- *Step 4* Adjust the result of Step 3 in accordance with section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-07-31) (to the extent applicable).
- *Step 2* Adjust the result of Step 1 in accordance with section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-08-01) (to the extent applicable). If the adjusted result is nil, the top-up amount is nil. Otherwise, proceed to Step 3.
- *Step 3* Determine the substance-based income exclusion for the entity for the period (see section [221](https://www.legislation.gov.uk/ukpga/2023/30/section/221/2023-08-01)).
- *Step 4* Adjust the result of Step 3 in accordance with section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-08-01) (to the extent applicable).
- *Step 5* Subtract the result of Step 4 from the result of Step 2. If the result is nil or less, the top-up amount is nil. Otherwise, proceed to Step 6.
- *Step 6* Determine the investment entity effective tax rate for the territory for the period (see section [222](https://www.legislation.gov.uk/ukpga/2023/30/section/222/2023-07-31)).
- *Step 6* Determine the investment entity effective tax rate for the territory for the period (see section [222](https://www.legislation.gov.uk/ukpga/2023/30/section/222/2023-08-01)).
- *Step 7* Subtract the result of Step 6 from 15%. If the result is nil or less, the top-up amount is nil. Otherwise, proceed to Step 8.
- *Step 8* Multiply the result of Step 7 by the result of Step 5. This is the top-up amount for the entity.
- (2) If an election under section [214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-07-31) (taxable distribution method election) has been made in relation to the entity, the top-up amount for an accounting period of the entity is the top-up amount determined under subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/220/1/2023-07-31) added together with any positive undistributed income amount for the entity for the period (see section [215](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-07-31)).
- (2) If an election under section [214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-08-01) (taxable distribution method election) has been made in relation to the entity, the top-up amount for an accounting period of the entity is the top-up amount determined under subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/220/1/2023-08-01) added together with any positive undistributed income amount for the entity for the period (see section [215](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-08-01)).
- (3) For the purposes of applying Chapter 4 in relation to an investment entity, the references in section 33(2) to “standard members” of a multinational group are instead to members of the multinational group that are investment entities.
@@ -6154,13 +6154,13 @@
- (b) the tangible asset carve-out amount of the entity,
- (2) Section [195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/4/2023-07-31) applies to the determination of the payroll carve-out amount of the entity as it applies for members of the group that are not investment entities.
- (3) Section [195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/5/2023-07-31) applies to the determination of the tangible asset carve-out amount of the entity as it applies for members of the group that are not investment entities.
- (2) Section [195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/4/2023-08-01) applies to the determination of the payroll carve-out amount of the entity as it applies for members of the group that are not investment entities.
- (3) Section [195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/5/2023-08-01) applies to the determination of the tangible asset carve-out amount of the entity as it applies for members of the group that are not investment entities.
- (4) If the filing member for the group elects not to calculate the substance based income exclusion for the period in a self-assessment (see Schedule 12), the exclusion is nil.
- (5) Paragraph [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/221/4/2023-07-31).
- (5) Paragraph [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/221/4/2023-08-01).
#### Investment entity effective tax rate
@@ -6168,7 +6168,7 @@
The investment entity effective tax rate in a territory for an accounting period is determined by taking the following steps—
- *Step 1* Determine the adjusted profits made by each of the investment entities in the territory, as determined under Chapter 4 and adjusted under section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-07-31).
- *Step 1* Determine the adjusted profits made by each of the investment entities in the territory, as determined under Chapter 4 and adjusted under section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-08-01).
- *Step 2* Subtract the sum of the losses of those investment entities that made a loss in that period from the sum of the profits of those investment entities that made a profit in that period.
@@ -6176,7 +6176,7 @@
- *Step 4* Determine the covered tax balance of each such investment entity in accordance with Chapter 5.
- *Step 5* Adjust the amounts determined in Step 4 in accordance with section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-07-31) (to the extent applicable).
- *Step 5* Adjust the amounts determined in Step 4 in accordance with section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-08-01) (to the extent applicable).
- *Step 6* Add together the amounts determined in Step 5 that are adjusted positive covered tax balances.
@@ -6198,9 +6198,9 @@
- (c) the covered tax balance of an investment entity.
- (2) An external holding adjustment is to be made to each relevant amount if a person that is not a member of the multinational group has ownership interests in the entity and no election under section [213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-07-31) (tax transparency election) has been made in relation to the entity.
- (3) An election adjustment is to be made to each relevant amount if an election under section [213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-07-31) (tax transparency election) or [214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-07-31) (taxable distribution method election) has been made in relation to the entity.
- (2) An external holding adjustment is to be made to each relevant amount if a person that is not a member of the multinational group has ownership interests in the entity and no election under section [213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-08-01) (tax transparency election) has been made in relation to the entity.
- (3) An election adjustment is to be made to each relevant amount if an election under section [213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-08-01) (tax transparency election) or [214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-08-01) (taxable distribution method election) has been made in relation to the entity.
- (4) Where both an external holding adjustment and an election adjustment are to be made, the election adjustment is to be made after the external holding adjustment (and accordingly is to be an adjustment of a relevant amount as adjusted by the external holding adjustment).
@@ -6212,7 +6212,7 @@
- (a) the amount of profits of the entity attributable to ownership interests held by persons that are not members of the group, by
- (b) the total amount of profits of the entity determined under Chapter [4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-07-31).
- (b) the total amount of profits of the entity determined under Chapter [4](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/4/2023-08-01).
- (8) The adjustment factor for an election adjustment is the value obtained by dividing—
@@ -6220,41 +6220,41 @@
- (b) the total amount of profits of the entity attributable to ownership interests held by members of the group.
- (9) The amount of profits attributable to ownership interests is to be determined in accordance with the method in section [201](https://www.legislation.gov.uk/ukpga/2023/30/section/201/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/201/2/2023-07-31) for determining the amount of profits attributable to the ownership interests referred to in that section.
- (10) Where the covered tax balance of an investment entity includes an amount allocated to it under [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/1/2023-07-31) or [180](https://www.legislation.gov.uk/ukpga/2023/30/section/180/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/a/2023-07-31) (allocation of tax imposed under controlled foreign company tax regimes), only so much of its covered tax balance as is not comprised of amounts allocated under those sections is subject to adjustment under this section.
- (9) The amount of profits attributable to ownership interests is to be determined in accordance with the method in section [201](https://www.legislation.gov.uk/ukpga/2023/30/section/201/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/201/2/2023-08-01) for determining the amount of profits attributable to the ownership interests referred to in that section.
- (10) Where the covered tax balance of an investment entity includes an amount allocated to it under [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/1/2023-08-01) or [180](https://www.legislation.gov.uk/ukpga/2023/30/section/180/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/180/3/a/2023-08-01) (allocation of tax imposed under controlled foreign company tax regimes), only so much of its covered tax balance as is not comprised of amounts allocated under those sections is subject to adjustment under this section.
#### Additional top-up amounts of investment entities
##### 224
- (1) Sections [202](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-07-31) to [207](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2023-07-31) apply in respect of a member of a multinational group that is an investment entity such that the member may have additional top-up amounts.
- (1) Sections [202](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-08-01) to [207](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2023-08-01) apply in respect of a member of a multinational group that is an investment entity such that the member may have additional top-up amounts.
- (2) For that purpose—
- (a) references in those sections to the standard members of a multinational group in a territory apply as if they were references to the investment entities of the group in the territory;
- (b) the reference in section [202](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/202/3/2023-07-31) to Step 2 in section [132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-07-31) applies as if it were a reference to Step 2 in [section 222](https://www.legislation.gov.uk/ukpga/2023/30/section/222/2023-07-31);
- (c) sections [204](https://www.legislation.gov.uk/ukpga/2023/30/section/204/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/204/4/2023-07-31) and [207](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2/2023-07-31) do not apply.
- (b) the reference in section [202](https://www.legislation.gov.uk/ukpga/2023/30/section/202/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/202/3/2023-08-01) to Step 2 in section [132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/132/1/2023-08-01) applies as if it were a reference to Step 2 in [section 222](https://www.legislation.gov.uk/ukpga/2023/30/section/222/2023-08-01);
- (c) sections [204](https://www.legislation.gov.uk/ukpga/2023/30/section/204/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/204/4/2023-08-01) and [207](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/207/2/2023-08-01) do not apply.
#### Attribution of top-up amounts and additional top-up amounts to responsible member
##### 225
- (1) In this section “*top-up amount*” includes an additional top-up amount determined under section [224](https://www.legislation.gov.uk/ukpga/2023/30/section/224/2023-07-31).
- (2) Section [200](https://www.legislation.gov.uk/ukpga/2023/30/section/200/2023-07-31) applies to the attribution of a top-up amount of a member of a multinational group that is an investment entity (“the relevant member”) to a responsible member as it applies to a top-up amount of any other member of the group.
- (3) Section [201](https://www.legislation.gov.uk/ukpga/2023/30/section/201/2023-07-31) applies for the purpose of determining the inclusion ratio of the responsible member, but—
- (a) in carrying out Step 1 in section [201](https://www.legislation.gov.uk/ukpga/2023/30/section/201/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/201/1/2023-07-31)—
- (i) the adjusted profits of the entity determined in that Step are to be further adjusted in accordance with section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-07-31) (to the extent applicable);
- (ii) if an election under section [214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-07-31) (taxable distribution method election) has been made in relation to the entity, the adjusted profits of the entity are to be treated as including the undistributed income amount for the entity determined under section [215](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-07-31), and
- (b) subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/201/4/2023-07-31) of that section applies whether or not the relevant member is a flow-through entity (so that entities that are not members of the group are always ignored).
- (1) In this section “*top-up amount*” includes an additional top-up amount determined under section [224](https://www.legislation.gov.uk/ukpga/2023/30/section/224/2023-08-01).
- (2) Section [200](https://www.legislation.gov.uk/ukpga/2023/30/section/200/2023-08-01) applies to the attribution of a top-up amount of a member of a multinational group that is an investment entity (“the relevant member”) to a responsible member as it applies to a top-up amount of any other member of the group.
- (3) Section [201](https://www.legislation.gov.uk/ukpga/2023/30/section/201/2023-08-01) applies for the purpose of determining the inclusion ratio of the responsible member, but—
- (a) in carrying out Step 1 in section [201](https://www.legislation.gov.uk/ukpga/2023/30/section/201/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/201/1/2023-08-01)—
- (i) the adjusted profits of the entity determined in that Step are to be further adjusted in accordance with section [223](https://www.legislation.gov.uk/ukpga/2023/30/section/223/2023-08-01) (to the extent applicable);
- (ii) if an election under section [214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-08-01) (taxable distribution method election) has been made in relation to the entity, the adjusted profits of the entity are to be treated as including the undistributed income amount for the entity determined under section [215](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-08-01), and
- (b) subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/201/4/2023-08-01) of that section applies whether or not the relevant member is a flow-through entity (so that entities that are not members of the group are always ignored).
### Joint venture group
@@ -6294,7 +6294,7 @@
##### 227
- (1) This Part applies to a joint venture group as it applies to a multinational group, but [Chapters 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/3/2023-07-31) to [6](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/6/2023-07-31) and [8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) and [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31) apply as if—
- (1) This Part applies to a joint venture group as it applies to a multinational group, but [Chapters 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/3/2023-08-01) to [6](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/6/2023-08-01) and [8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) and [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01) apply as if—
- (a) references to the ultimate parent were to the joint venture parent of that group,
@@ -6340,13 +6340,13 @@
- (a) those groups (“the constituent groups”) are to be treated as a single multinational group (and accordingly multinational top-up tax will be charged in relation to that single group), and
- (b) the group’s members include (as well as the members who are members as a result of [section 126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-07-31)) entities who would not be a member of any of the constituent groups but in which a controlling interest is held by one or more members of the constituent groups,
- (2) [This Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) has effect, in its application to a multi-parent group, as if—
- (b) the group’s members include (as well as the members who are members as a result of [section 126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-08-01)) entities who would not be a member of any of the constituent groups but in which a controlling interest is held by one or more members of the constituent groups,
- (2) [This Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) has effect, in its application to a multi-parent group, as if—
- (a) references (however framed) to the consolidated financial statements of the ultimate parent were to the multi-parent consolidated financial statements,
- (b) references to the ultimate parent were to all of the ultimate parents of the constituent groups, other than the reference in [section 128](https://www.legislation.gov.uk/ukpga/2023/30/section/128/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/3/b/2023-07-31) (responsible members).
- (b) references to the ultimate parent were to all of the ultimate parents of the constituent groups, other than the reference in [section 128](https://www.legislation.gov.uk/ukpga/2023/30/section/128/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/3/b/2023-08-01) (responsible members).
- (3) Where ownership interests in an intermediate parent member of a multi-parent group are held by more than one of the ultimate parents of the multi-parent group, section 127(3) has effect as if for paragraph (b) there were substituted—
@@ -6354,24 +6354,24 @@
.
- (4) Where an intermediate parent member of a multi-parent group is not a member of any of the constituent groups, [section 128](https://www.legislation.gov.uk/ukpga/2023/30/section/128/2023-07-31) has effect in relation to it as if—
- (a) paragraph [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/3/b/2023-07-31) of subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/3/2023-07-31) were omitted, and
- (b) for [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/4/2023-07-31) there were substituted—
- (4) Where an intermediate parent member of a multi-parent group is not a member of any of the constituent groups, [section 128](https://www.legislation.gov.uk/ukpga/2023/30/section/128/2023-08-01) has effect in relation to it as if—
- (a) paragraph [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/3/b/2023-08-01) of subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/3/2023-08-01) were omitted, and
- (b) for [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/128/4/2023-08-01) there were substituted—
> (4) Such an intermediate parent member is responsible for each member of the group it has an ownership interest provided the conditions in subsection (4A) are met in relation to that member (“the owned member”).
> (4A) Those conditions are that—
> (a) the owned member is not located in the same territory as the intermediate parent member, and
> (b) any of the ultimate parents of the constituent groups that has an ownership interest in the owned member is not subject to Pillar Two IIR tax.
- (5) Unless a nomination under [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) is in force in relation to a multi-parent group—
- (5) Unless a nomination under [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) is in force in relation to a multi-parent group—
- (a) the ultimate parents of the constituent groups are jointly the filing member of the multi-parent group, and
- (b) any liability for a penalty for a failure to comply with the obligations of the filing member is the joint and several liability of those ultimate parents.
- (6) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/229/2023-07-31)—
- (6) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/229/2023-08-01)—
- two or more consolidated groups form part of a “*multi-parent group*” if— the ultimate parents of those groups are party to an arrangement that is a stapled structure or a dual-listed arrangement, and at least one of the controlled entities of those groups is not in the same territory as another of the other controlled entities of those groups;
@@ -6391,7 +6391,7 @@
##### 230
- (1) The provisions of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/10/2023-07-31) define or otherwise explain terms and concepts used in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31).
- (1) The provisions of [this Chapter](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/10/2023-08-01) define or otherwise explain terms and concepts used in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01).
- (2) Unless the contrary appears, those provisions have effect for the purposes of this Part.
@@ -6413,7 +6413,7 @@
- (2) An entity which is, or is part of, a national, regional or local government is not to be regarded as an entity for the purposes of this Part.
- (3) [Sections 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31) to [238](https://www.legislation.gov.uk/ukpga/2023/30/section/238/2023-07-31) make further provision about entities including provision—
- (3) [Sections 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01) to [238](https://www.legislation.gov.uk/ukpga/2023/30/section/238/2023-08-01) make further provision about entities including provision—
- (a) treating permanent establishments as entities,
@@ -6429,7 +6429,7 @@
- (a) is located in a territory other than the territory of the main entity, and
- (b) meets any of the conditions in [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/a/2023-07-31) to [(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/d/2023-07-31) of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31).
- (b) meets any of the conditions in [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/a/2023-08-01) to [(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/d/2023-08-01) of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01).
- (2) Those conditions are—
@@ -6441,15 +6441,15 @@
- (d) that—
- (i) the place of business does not meet any of the conditions in [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/a/2023-07-31) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/c/2023-07-31), and
- (i) the place of business does not meet any of the conditions in [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/a/2023-08-01) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/c/2023-08-01), and
- (ii) the territory of the main entity exempts the income attributable to the place of business’s operations.
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), a permanent establishment is to be treated as an entity distinct from the entity it is a permanent establishment of (whether that would otherwise be the case or not).
- (4) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31) “*place of business*” means a place of business as construed in accordance with the OECD tax model, and includes a deemed place of business for the purpose of that model, a tax treaty or the domestic law of a territory.
- (5) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), a reference to “*the main entity*” in relation to a permanent establishment is to be construed in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31).
- (3) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), a permanent establishment is to be treated as an entity distinct from the entity it is a permanent establishment of (whether that would otherwise be the case or not).
- (4) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01) “*place of business*” means a place of business as construed in accordance with the OECD tax model, and includes a deemed place of business for the purpose of that model, a tax treaty or the domestic law of a territory.
- (5) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), a reference to “*the main entity*” in relation to a permanent establishment is to be construed in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01).
#### Treatment of protected cell companies
@@ -6491,7 +6491,7 @@
- (c) it is accountable to that government on its overall performance and provides annual information reporting to that government,
- (d) it does not carry on a trade or business, other than an investment business described in [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/b/2023-07-31)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/b/ii/2023-07-31),
- (d) it does not carry on a trade or business, other than an investment business described in [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/b/2023-08-01)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/b/ii/2023-08-01),
- (e) its assets vest in that government on its dissolution, and
@@ -6513,7 +6513,7 @@
- (ii) as a professional organisation, business league, chamber of commerce, labour organisation, agricultural or horticultural organisation, civic league or an organisation operated exclusively for the promotion of social welfare, and
- (b) it meets all of the conditions mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/4/2023-07-31).
- (b) it meets all of the conditions mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/4/2023-08-01).
- (4) Those conditions are that—
@@ -6549,7 +6549,7 @@
- (2) An entity is a “pension services entity” if it is an entity established and operated exclusively or almost exclusively—
- (a) to invest funds for the benefit of an entity falling with the description in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/235/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/235/1/a/2023-07-31), or
- (a) to invest funds for the benefit of an entity falling with the description in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/235/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/235/1/a/2023-08-01), or
- (b) to carry out activities that are ancillary to the regulated activities carried out by an entity falling with that description, provided that the entities are members of the same group.
@@ -6579,7 +6579,7 @@
- (2) An “insurance investment entity” is an entity that meets all of the following conditions—
- (a) the entity is not an investment fund under subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/1/2023-07-31), but would be an investment fund if it were designed to pool assets from more than one investor or those investors were required not to be connected;
- (a) the entity is not an investment fund under subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/1/2023-08-01), but would be an investment fund if it were designed to pool assets from more than one investor or those investors were required not to be connected;
- (b) the costs or risks the entity operates with a view to reducing are those associated with insurance or annuity contracts;
@@ -6597,19 +6597,19 @@
- (c) an entity—
- (i) that is 95% owned by one or more entities falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/b/2023-07-31), and
- (i) that is 95% owned by one or more entities falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/b/2023-08-01), and
- (ii) whose activities consist, wholly or almost wholly, of the holding of assets or the investment of funds for the benefit of those owners,
- (d) an entity—
- (i) that is 85% owned by one or more entities falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/b/2023-07-31), and
- (i) that is 85% owned by one or more entities falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/b/2023-08-01), and
- (ii) whose income is wholly or almost wholly excluded dividends or excluded equity gains (or a mixture of both), or
- (e) an insurance investment entity.
- (4) For the purposes of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/2023-07-31) references to an entity being 95% or 85% owned by one or entities falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/b/2023-07-31) of that subsection is to those entities together having at least that percentage of the ownership interests in that entity.
- (4) For the purposes of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/2023-08-01) references to an entity being 95% or 85% owned by one or entities falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/236/3/b/2023-08-01) of that subsection is to those entities together having at least that percentage of the ownership interests in that entity.
#### Intermediate and partially-owned parent members
@@ -6641,13 +6641,13 @@
##### 239
- (1) The normal rule for determining, for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), the territory in which an entity is located is that—
- (1) The normal rule for determining, for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), the territory in which an entity is located is that—
- (a) if it is tax resident in a territory based on its place of management or place of creation, or based on similar criteria, it is located in that territory, or
- (b) if it is not tax resident in any territory based on such criteria, it is located in the territory in which it was created.
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/1/2023-07-31) does not apply to a flow-through entity or a permanent establishment (as to which, see [section 240](https://www.legislation.gov.uk/ukpga/2023/30/section/240/2023-07-31)).
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/1/2023-08-01) does not apply to a flow-through entity or a permanent establishment (as to which, see [section 240](https://www.legislation.gov.uk/ukpga/2023/30/section/240/2023-08-01)).
- (3) Where, in an accounting period, an entity is tax resident based on its place of management, place of creation or similar criteria in more than one territory and—
@@ -6663,31 +6663,31 @@
- (b) if paragraph (a) does not apply and the entity has a greater qualifying substance based income exclusion amount in one of those territories than in the others, it is to be treated as located in that territory for that period, or
- (c) if neither [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/a/2023-07-31) nor [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/b/2023-07-31) applies—
- (c) if neither [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/a/2023-08-01) nor [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/b/2023-08-01) applies—
- (i) if the entity is the ultimate parent of a multinational group, it is to be treated as being located in the place where it was created for that period, or
- (ii) otherwise, the entity is a stateless entity for that period.
- (5) For the purposes of [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/b/2023-07-31) “the qualifying substance based income exclusion amount” for an entity for a period in a territory is—
- (a) if the substance based income exclusion is calculated for that period for that territory, the sum of the payroll carve-out amount and the tangible asset carve-out amount as would be determined under [section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/1/2023-07-31) for the entity for that period if the entity were located in that territory, and
- (5) For the purposes of [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/b/2023-08-01) “the qualifying substance based income exclusion amount” for an entity for a period in a territory is—
- (a) if the substance based income exclusion is calculated for that period for that territory, the sum of the payroll carve-out amount and the tangible asset carve-out amount as would be determined under [section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/1/2023-08-01) for the entity for that period if the entity were located in that territory, and
- (b) if the substance based income exclusion is not calculated for that period for that territory, nil.
- (6) Where—
- (a) an entity is not (ignoring [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/239/6/2023-07-31)) subject to Pillar Two IIR tax within the meaning of [section 128](https://www.legislation.gov.uk/ukpga/2023/30/section/128/2023-07-31),
- (a) an entity is not (ignoring [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/239/6/2023-08-01)) subject to Pillar Two IIR tax within the meaning of [section 128](https://www.legislation.gov.uk/ukpga/2023/30/section/128/2023-08-01),
- (b) it is tax resident based on its place of management, place of creation or similar criteria in the United Kingdom,
- (c) as a result of the application of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/3/2023-07-31) or [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/2023-07-31) it is treated as not being located in the United Kingdom, and
- (c) as a result of the application of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/3/2023-08-01) or [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/239/4/2023-08-01) it is treated as not being located in the United Kingdom, and
- (d) if it were located in the United Kingdom, it would be a responsible member of a multinational group,
the entity is instead to be treated as located in the United Kingdom for the purposes of [sections 122](https://www.legislation.gov.uk/ukpga/2023/30/section/122/2023-07-31) and [126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) (but not otherwise).
- (7) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)—
the entity is instead to be treated as located in the United Kingdom for the purposes of [sections 122](https://www.legislation.gov.uk/ukpga/2023/30/section/122/2023-08-01) and [126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) (but not otherwise).
- (7) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)—
- (a) a “stateless entity” is to be treated as not being located in any territory;
@@ -6701,13 +6701,13 @@
- (2) Any other flow-through entity is a stateless entity.
- (3) A permanent establishment that is a permanent establishment falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/a/2023-07-31) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31) (entity treated as permanent establishment in accordance with tax treaty) is located in the territory where it is treated as a permanent establishment in accordance with the tax treaty in accordance with which it is treated as a permanent establishment.
- (4) A permanent establishment that is a permanent establishment falling within [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/b/2023-07-31) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31) (permanent establishment taxed on similar basis to residents in absence of tax treaty) is located in the territory where it is subject to net basis taxation based on its business presence.
- (5) A permanent establishment that is a a permanent establishment falling within [paragraph (c)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/c/2023-07-31) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31) (permanent establishment located in territory without corporate income tax) is located in the territory in which it is situated.
- (6) A permanent establishment that is a permanent establishment falling within [paragraph (d)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/d/2023-07-31) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-07-31) (other permanent establishments) is a stateless entity.
- (3) A permanent establishment that is a permanent establishment falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/a/2023-08-01) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01) (entity treated as permanent establishment in accordance with tax treaty) is located in the territory where it is treated as a permanent establishment in accordance with the tax treaty in accordance with which it is treated as a permanent establishment.
- (4) A permanent establishment that is a permanent establishment falling within [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/b/2023-08-01) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01) (permanent establishment taxed on similar basis to residents in absence of tax treaty) is located in the territory where it is subject to net basis taxation based on its business presence.
- (5) A permanent establishment that is a a permanent establishment falling within [paragraph (c)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/c/2023-08-01) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01) (permanent establishment located in territory without corporate income tax) is located in the territory in which it is situated.
- (6) A permanent establishment that is a permanent establishment falling within [paragraph (d)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/d/2023-08-01) of [section 232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2/2023-08-01) (other permanent establishments) is a stateless entity.
#### Pillar Two territories
@@ -6771,9 +6771,9 @@
- (1) For the purpose of determining the percentage of ownership interests in an entity (“*A*”) held by a class of entities (“*B*”)—
- (a) ignore any indirect ownership interest required to be ignored as described in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/244/2/2023-07-31), and
- (b) reduce any percentage direct ownership interest required to be reduced in accordance with [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/244/3/2023-07-31).
- (a) ignore any indirect ownership interest required to be ignored as described in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/244/2/2023-08-01), and
- (b) reduce any percentage direct ownership interest required to be reduced in accordance with [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/244/3/2023-08-01).
- (2) An indirect ownership interest is to be ignored if—
@@ -6783,21 +6783,21 @@
- (3) Where a member of B holds an indirect ownership interest in A solely through an entity, or entities, that are not members of B, the direct ownership interest from which it is derived is to be reduced by the amount of that indirect ownership interest.
- (4) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/244/2023-07-31) does not apply—
- (4) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/244/2023-08-01) does not apply—
- (a) for the purpose of any provision that requires the calculation of direct ownership interests only, or
- (b) for the purposes of [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/a/2023-07-31) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/a/2023-07-31) (whether an entity is 95% or 85% owned by qualifying excluded entities).
- (b) for the purposes of [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/a/2023-08-01) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/a/2023-08-01) (whether an entity is 95% or 85% owned by qualifying excluded entities).
#### Calculating percentage ownership interests: excluded entities
##### 245
- (1) For the purpose of determining, under [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/a/2023-07-31) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/a/2023-07-31), the percentage of ownership interests in an entity (“*A*”) held by qualifying excluded entities—
- (1) For the purpose of determining, under [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/6/a/2023-08-01) and [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/7/a/2023-08-01), the percentage of ownership interests in an entity (“*A*”) held by qualifying excluded entities—
- (a) ignore any indirect ownership interest apart from ownership interests held solely through one or more qualifying service entities or qualifying exempt income entities, and
- (b) ignore any direct or indirect ownership interest required to be ignored as described in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/245/2/2023-07-31).
- (b) ignore any direct or indirect ownership interest required to be ignored as described in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/245/2/2023-08-01).
- (2) Where an entity holds an indirect ownership interest in A solely through an entity, or entities, that are qualifying service entities or qualifying exempt income entities, each direct and indirect ownership interest from which it is derived is to be ignored.
@@ -6817,15 +6817,15 @@
- (b) if—
- (i) F issues all of those types of interest and all of those types are relevant, divide the result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/2023-07-31) by 3, or
- (ii) F only issues 2 of the relevant types of interest or there are only 2 types of interest that are relevant and E issues both of them, divide the result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/2023-07-31) by 2.
- (2) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/2023-07-31)—
- (i) F issues all of those types of interest and all of those types are relevant, divide the result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/2023-08-01) by 3, or
- (ii) F only issues 2 of the relevant types of interest or there are only 2 types of interest that are relevant and E issues both of them, divide the result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/2023-08-01) by 2.
- (2) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/2023-08-01)—
- (a) where a provision under which a percentage of ownership interests is to be determined refers to types of interest mentioned in those sub-paragraphs, the types referred to are “relevant”, and
- (b) where such a provision does not refer to types of interest mentioned in [sub-paragraphs (i)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/i/2023-07-31) to [(iii)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/iii/2023-07-31) of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/2023-07-31), all of those types of interest are “relevant”.
- (b) where such a provision does not refer to types of interest mentioned in [sub-paragraphs (i)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/i/2023-08-01) to [(iii)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/iii/2023-08-01) of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/a/2023-08-01), all of those types of interest are “relevant”.
- (3) To determine the percentage indirect ownership interest an entity or individual (“*G*”) has in an entity (“*H*”)—
@@ -6833,7 +6833,7 @@
- (b) add those percentage indirect ownership interests for those stacks together.
- (4) For the purposes of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/3/2023-07-31) a “*stack*” means a chain of entities through which G has an indirect ownership interest in H which is comprised of an entity (“*J*”) which has a direct ownership interest in H and—
- (4) For the purposes of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/3/2023-08-01) a “*stack*” means a chain of entities through which G has an indirect ownership interest in H which is comprised of an entity (“*J*”) which has a direct ownership interest in H and—
- (a) where G has a direct ownership interest in J, G, or
@@ -6847,13 +6847,13 @@
- (5) To determine G’s percentage indirect ownership interest in H arising as a result of a stack—
- (a) determine, in accordance with [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/2023-07-31)—
- (a) determine, in accordance with [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/1/2023-08-01)—
- (i) J’s percentage direct ownership interest in H, and
- (ii) the percentage direct ownership interest each other member of the stack has in the member of the stack it has a direct ownership interest in, and
- (b) multiply together the percentage direct ownership interests determined under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/5/a/2023-07-31).
- (b) multiply together the percentage direct ownership interests determined under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/246/5/a/2023-08-01).
#### Timing of transfers of interests
@@ -6867,7 +6867,7 @@
(instead of at any earlier time when the transfer is effective).
- (2) In [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/247/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/247/1/b/2023-07-31) the reference to “*substantive consideration*” means any amount of the consideration for the transfer other than any amount provided before the transfer which would not be refundable if the transfer did not take place as a result of the transferee not meeting its obligations under the arrangements to make the transfer.
- (2) In [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/247/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/247/1/b/2023-08-01) the reference to “*substantive consideration*” means any amount of the consideration for the transfer other than any amount provided before the transfer which would not be refundable if the transfer did not take place as a result of the transferee not meeting its obligations under the arrangements to make the transfer.
#### Exclusion of indirect interests held through ultimate parent
@@ -6887,15 +6887,15 @@
- (b) where the entity is the ultimate parent of a consolidated group whose only members are that entity and its permanent establishments, the financial accounts of that entity that are prepared in accordance with an acceptable accounting standard,
- (c) where the entity has prepared statements that would fall within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/b/2023-07-31) but they were not prepared in accordance with an acceptable accounting standard, those statements but adjusted to prevent material competitive distortions, or
- (d) where no statements were prepared falling within [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/a/2023-07-31) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/c/2023-07-31), the statements that would have been prepared (whether or not the entity was required to prepare such statements) in accordance with an authorised accounting standard that is either—
- (c) where the entity has prepared statements that would fall within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/b/2023-08-01) but they were not prepared in accordance with an acceptable accounting standard, those statements but adjusted to prevent material competitive distortions, or
- (d) where no statements were prepared falling within [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/a/2023-08-01) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/c/2023-08-01), the statements that would have been prepared (whether or not the entity was required to prepare such statements) in accordance with an authorised accounting standard that is either—
- (i) an acceptable accounting standard, or
- (ii) a financial accounting standard whose application is adjusted to prevent material competitive distortions.
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/2023-07-31)[(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/d/2023-07-31) is not to be taken as imposing a requirement to consolidate entities where that is not required, or is not permitted, by an authorised accounting standard.
- (2) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/2023-08-01)[(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/1/d/2023-08-01) is not to be taken as imposing a requirement to consolidate entities where that is not required, or is not permitted, by an authorised accounting standard.
- (3) “*Authorised accounting standard*” in relation to an entity means a set of generally acceptable accounting principles permitted by the body responsible for prescribing, establishing or accepting accounting standards for financial reporting purposes in the territory the entity is located in.
@@ -6905,13 +6905,13 @@
- (b) the treatment of those items in accounts prepared in accordance with the corresponding principles or procedures under international financial reporting standards.
- (5) Competitive distortions are “material” if the sum of the differences between the treatment of items in the accounts referred to in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/4/2023-07-31) exceeds 75 million euros.
- (5) Competitive distortions are “material” if the sum of the differences between the treatment of items in the accounts referred to in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/4/2023-08-01) exceeds 75 million euros.
#### Acceptable accounting standards
##### 250
- (1) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) “*acceptable accounting standards*” means—
- (1) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) “*acceptable accounting standards*” means—
- (a) UK GAAP,
@@ -6955,7 +6955,7 @@
- the United States of America.
- (4) The Treasury may by regulations amend [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/250/3/2023-07-31) to add or remove territories.
- (4) The Treasury may by regulations amend [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/250/3/2023-08-01) to add or remove territories.
- (5) In this section “*UK companies*” means companies incorporated or formed under the law of a part of the United Kingdom.
@@ -6979,7 +6979,7 @@
##### 252
- (1) A sovereign wealth fund that would, ignoring this subsection, be the ultimate parent of a multinational group is not to be regarded as the ultimate parent of that group and is to be ignored for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31).
- (1) A sovereign wealth fund that would, ignoring this subsection, be the ultimate parent of a multinational group is not to be regarded as the ultimate parent of that group and is to be ignored for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01).
- (2) Accordingly, an entity (“*A*”) in which such a sovereign wealth fund has a controlling interest as a result of direct ownership interests is to be regarded as the ultimate parent of a consolidated group consisting of—
@@ -6987,7 +6987,7 @@
- (b) the entities that A has a controlling interest in.
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/252/2023-07-31) “*sovereign wealth fund*” means an entity which is a government entity for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) as a result of meeting the condition in [section 234](https://www.legislation.gov.uk/ukpga/2023/30/section/234/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/b/2023-07-31)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/b/ii/2023-07-31).
- (3) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/252/2023-08-01) “*sovereign wealth fund*” means an entity which is a government entity for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) as a result of meeting the condition in [section 234](https://www.legislation.gov.uk/ukpga/2023/30/section/234/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/b/2023-08-01)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/234/1/b/ii/2023-08-01).
#### Disqualified and qualified refundable imputation taxes
@@ -7027,13 +7027,13 @@
- (vi) to a resident life insurance company to the extent the dividends are received in connection with a pension fund business and subject to tax in a similar manner as a dividend received by a pension fund.
- (3) For the purposes of [sub-paragraphs (v)](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2/b/v/2023-07-31) and [(vi)](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2/b/vi/2023-07-31) of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2/b/2023-07-31), an entity is a resident entity if it is resident in the territory that imposed the tax, and for those purposes—
- (3) For the purposes of [sub-paragraphs (v)](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2/b/v/2023-08-01) and [(vi)](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2/b/vi/2023-08-01) of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/253/2/b/2023-08-01), an entity is a resident entity if it is resident in the territory that imposed the tax, and for those purposes—
- (a) a non-profit organisation or pension fund is resident in a territory if it is created and managed in that territory;
- (b) an investment entity is resident in a territory if it is created and regulated in that territory;
- (c) a life insurance company is resident in a territory if it is located there (see [section 239](https://www.legislation.gov.uk/ukpga/2023/30/section/239/2023-07-31)).
- (c) a life insurance company is resident in a territory if it is located there (see [section 239](https://www.legislation.gov.uk/ukpga/2023/30/section/239/2023-08-01)).
#### Use of currency
@@ -7051,7 +7051,7 @@
- (b) any further commentaries or guidance published from time to time by the OECD that are relevant to the implementation of the Pillar Two model rules.
- (2) In [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/255/1/2023-07-31)—
- (2) In [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/255/1/2023-08-01)—
- “*Pillar Two model rules*” means the model rules published by the Organisation for Economic Co-operation and Development as “Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two): Inclusive Framework on BEPS”;
@@ -7061,15 +7061,15 @@
- (a) the group is a qualifying multinational group, or
- (b) the group would be a qualifying multinational group but is not only as a result of Condition B in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/3/2023-07-31) (requirement that at least one member located in the United Kingdom).
- (b) the group would be a qualifying multinational group but is not only as a result of Condition B in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/3/2023-08-01) (requirement that at least one member located in the United Kingdom).
#### Qualifying domestic top-up tax
##### 256
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) a tax is a “qualifying domestic top-up tax” if it is—
- (a) domestic top-up tax (see [Part 4](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31)), or
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) a tax is a “qualifying domestic top-up tax” if it is—
- (a) domestic top-up tax (see [Part 4](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01)), or
- (b) specified in a regulations made by the Treasury.
@@ -7087,7 +7087,7 @@
##### 257
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) a tax is a “qualifying undertaxed profits tax” if it is specified in regulations made by the Treasury.
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) a tax is a “qualifying undertaxed profits tax” if it is specified in regulations made by the Treasury.
- (2) A tax may only be specified in regulations if the Treasury consider that the tax is an appropriate means of implementing the UTPR (within the meaning of the Pillar Two rules).
@@ -7103,7 +7103,7 @@
##### 259
- (1) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)—
- (1) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)—
- “*company*” means a body corporate;
@@ -7159,13 +7159,13 @@
##### 260
[Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31) makes transitional provision.
[Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01) makes transitional provision.
#### Index of defined expressions
##### 261
[Schedule 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/17/2023-07-31) contains a table that lists terms defined for [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) and the provisions that define or explain them.
[Schedule 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/17/2023-08-01) contains a table that lists terms defined for [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) and the provisions that define or explain them.
#### Power to amend to ensure consistency with Pillar Two
@@ -7173,9 +7173,9 @@
- (1) Where the Treasury consider it necessary for the purpose of ensuring consistency with the Pillar Two rules, the Treasury may by regulations—
- (a) make further provision about the application of provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) or of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) to [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31), or
- (b) amend [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) or [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) to [Schedule 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/17/2023-07-31).
- (a) make further provision about the application of provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) or of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) to [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01), or
- (b) amend [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) or [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) to [Schedule 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/17/2023-08-01).
- (2) The power in this section may not be exercised after 31 December 2026.
@@ -7183,13 +7183,13 @@
##### 263
- (1) A power to make regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) includes a power to make consequential, supplementary, incidental, transitional or saving provision.
- (2) Regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) are to be made by statutory instrument.
- (3) A statutory instrument containing (whether alone or with other provision) regulations made under [section 262](https://www.legislation.gov.uk/ukpga/2023/30/section/262/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/262/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/262/1/b/2023-07-31) is subject to the made affirmative procedure.
- (4) Otherwise, a statutory instrument containing regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) is subject to annulment in pursuance of a resolution of the House of Commons.
- (1) A power to make regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) includes a power to make consequential, supplementary, incidental, transitional or saving provision.
- (2) Regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) are to be made by statutory instrument.
- (3) A statutory instrument containing (whether alone or with other provision) regulations made under [section 262](https://www.legislation.gov.uk/ukpga/2023/30/section/262/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/262/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/262/1/b/2023-08-01) is subject to the made affirmative procedure.
- (4) Otherwise, a statutory instrument containing regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) is subject to annulment in pursuance of a resolution of the House of Commons.
- (5) Where a statutory instrument is subject to “the made affirmative procedure”—
@@ -7197,13 +7197,13 @@
- (b) it ceases to have effect at the end of the period of 28 sitting days beginning with the day on which the instrument is made, unless within that period the instrument is approved by a resolution of the House of Commons.
- (6) Where regulations cease to have effect as a result of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/263/5/2023-07-31), that does not—
- (6) Where regulations cease to have effect as a result of [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/263/5/2023-08-01), that does not—
- (a) affect anything previously done under the regulations, or
- (b) prevent the making of new regulations.
- (7) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/262/2023-07-31), “*sitting day*” means a day on which the House of Commons is sitting (and a day is only a day on which the House of Commons is sitting if the House begins to sit on that day).
- (7) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/262/2023-08-01), “*sitting day*” means a day on which the House of Commons is sitting (and a day is only a day on which the House of Commons is sitting if the House begins to sit on that day).
#### Multinational top-up tax to apply from 31 December 2023
@@ -7219,19 +7219,19 @@
##### 265
- (1) The purpose of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) is to make provision for a qualified domestic minimum top-up tax within the meaning of the Pillar Two rules.
- (2) For that purpose, [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) makes provision for a tax payable in respect of qualifying entities (that will be located in the United Kingdom) whose rate of tax (as determined in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31)) is less than 15%.
- (1) The purpose of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) is to make provision for a qualified domestic minimum top-up tax within the meaning of the Pillar Two rules.
- (2) For that purpose, [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) makes provision for a tax payable in respect of qualifying entities (that will be located in the United Kingdom) whose rate of tax (as determined in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01)) is less than 15%.
- (3) The tax is to be known as “*domestic top-up tax*”.
- (4) [This Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) applies (with modifications) many of the provisions of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) (multinational top-up tax) for the purposes of—
- (4) [This Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) applies (with modifications) many of the provisions of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) (multinational top-up tax) for the purposes of—
- (a) determining liability to domestic top-up tax, and
- (b) administering domestic top-up tax.
- (5) Except where the contrary appears, expressions used in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) and in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) (multinational top-up tax) have the same meaning in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) as they have in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31).
- (5) Except where the contrary appears, expressions used in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) and in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) (multinational top-up tax) have the same meaning in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) as they have in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01).
#### Qualifying entities
@@ -7243,43 +7243,43 @@
- (b) if it is a member of a group, it meets condition C for that period.
- (2) Condition A is met by an entity for an accounting period if it is located in the United Kingdom in that period (see [section 239](https://www.legislation.gov.uk/ukpga/2023/30/section/239/2023-07-31) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)).
- (3) Condition B is met by an entity for an accounting period if the entity has revenue that exceeds the threshold set out in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/6/2023-07-31) in at least 2 previous accounting periods of the previous 4 accounting periods.
- (2) Condition A is met by an entity for an accounting period if it is located in the United Kingdom in that period (see [section 239](https://www.legislation.gov.uk/ukpga/2023/30/section/239/2023-08-01) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)).
- (3) Condition B is met by an entity for an accounting period if the entity has revenue that exceeds the threshold set out in [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/6/2023-08-01) in at least 2 previous accounting periods of the previous 4 accounting periods.
- (4) For the purposes of condition B, the revenue of an entity that is not a member of a group is to be determined by reference to its qualifying financial statements.
- (5) Condition C is met by a member of a group for an accounting period if the members of the group have revenue that exceeds the threshold set out in subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/6/2023-07-31) in at least 2 previous accounting periods of the previous 4 accounting periods.
- (5) Condition C is met by a member of a group for an accounting period if the members of the group have revenue that exceeds the threshold set out in subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/6/2023-08-01) in at least 2 previous accounting periods of the previous 4 accounting periods.
- (6) The threshold for an accounting period is the amount given by multiplying 750 million euros by the amount given by dividing the number of days in the accounting period by 365.
- (7) For the purposes of condition C, the revenue of the members of a group for a period is to be determined by reference to the consolidated financial statements of the ultimate parent for that period (see [sections 126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2/2023-07-31) and [249](https://www.legislation.gov.uk/ukpga/2023/30/section/249/2023-07-31) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)).
- (8) [Sections 130](https://www.legislation.gov.uk/ukpga/2023/30/section/130/2023-07-31) and [131](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2023-07-31) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) (change in composition of multinational groups) apply for the purpose of Condition C as if—
- (7) For the purposes of condition C, the revenue of the members of a group for a period is to be determined by reference to the consolidated financial statements of the ultimate parent for that period (see [sections 126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2/2023-08-01) and [249](https://www.legislation.gov.uk/ukpga/2023/30/section/249/2023-08-01) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)).
- (8) [Sections 130](https://www.legislation.gov.uk/ukpga/2023/30/section/130/2023-08-01) and [131](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2023-08-01) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) (change in composition of multinational groups) apply for the purpose of Condition C as if—
- (a) references to “multinational group” were to “group”,
- (b) in [section 130](https://www.legislation.gov.uk/ukpga/2023/30/section/130/2023-07-31)—
- (i) in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/1/2023-07-31), for “condition A in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2/2023-07-31)” there were substituted “condition C in [section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/5/2023-07-31)”,
- (ii) in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/4/2023-07-31), for “[section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-07-31)” there were substituted “[section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/6/2023-07-31)”,
- (c) in [section 131](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/131/1/2023-07-31)—
- (i) for “[section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)” there were substituted “[section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-07-31)”,
- (ii) for “[subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2/2023-07-31)” there were substituted “[subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/5/2023-07-31)”,
- (b) in [section 130](https://www.legislation.gov.uk/ukpga/2023/30/section/130/2023-08-01)—
- (i) in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/1/2023-08-01), for “condition A in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2/2023-08-01)” there were substituted “condition C in [section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/5/2023-08-01)”,
- (ii) in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/4/2023-08-01), for “[section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-08-01)” there were substituted “[section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/6/2023-08-01)”,
- (c) in [section 131](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/131/1/2023-08-01)—
- (i) for “[section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)” there were substituted “[section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-08-01)”,
- (ii) for “[subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2/2023-08-01)” there were substituted “[subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/5/2023-08-01)”,
- (iii) for “condition A” there were substituted “condition C”, and
- (iv) for “[section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-07-31)” there were substituted “[section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/6/2023-07-31), and
- (d) in [section 131](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2/2023-07-31), for “condition A in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2/2023-07-31)” there were substituted “condition C in [section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/5/2023-07-31)”
- (9) References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) to a “*group*” (other than in the expression “multinational group”) means a consolidated group (see [section 126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2/2023-07-31) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)).
- (10) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) “*qualifying financial statements*” in relation to an entity means—
- (iv) for “[section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/4/2023-08-01)” there were substituted “[section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/6/2023-08-01), and
- (d) in [section 131](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/131/2/2023-08-01), for “condition A in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2/2023-08-01)” there were substituted “condition C in [section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/266/5/2023-08-01)”
- (9) References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) to a “*group*” (other than in the expression “multinational group”) means a consolidated group (see [section 126](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/126/2/2023-08-01) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)).
- (10) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) “*qualifying financial statements*” in relation to an entity means—
- (a) financial statements of the entity prepared in accordance with acceptable accounting standards, or
@@ -7287,7 +7287,7 @@
- (i) an acceptable accounting standard, or
- (ii) a financial accounting standard whose application is adjusted to prevent material competitive distortions (see [section 249](https://www.legislation.gov.uk/ukpga/2023/30/section/249/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/4/2023-07-31)).
- (ii) a financial accounting standard whose application is adjusted to prevent material competitive distortions (see [section 249](https://www.legislation.gov.uk/ukpga/2023/30/section/249/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/249/4/2023-08-01)).
#### DTT excluded entities
@@ -7295,13 +7295,13 @@
- (1) An entity is a DTT excluded entity if—
- (a) it falls within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/3/2023-07-31) of [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-07-31) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) (excluded entities),
- (b) it is a member of a multinational group and falls within [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/4/2023-07-31) of that section, or
- (a) it falls within [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/3/2023-08-01) of [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-08-01) in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) (excluded entities),
- (b) it is a member of a multinational group and falls within [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/4/2023-08-01) of that section, or
- (c) it is a member of a group that is not a multinational group, but would fall within that subsection if that group were a multinational group.
- (2) A DTT excluded entity falling within subsection (1) (as well as not being a qualifying entity) is, for the purposes of the provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) other than [section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-07-31) and [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/267/2023-07-31), to be treated as not being a member of any group.
- (2) A DTT excluded entity falling within subsection (1) (as well as not being a qualifying entity) is, for the purposes of the provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) other than [section 266](https://www.legislation.gov.uk/ukpga/2023/30/section/266/2023-08-01) and [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/267/2023-08-01), to be treated as not being a member of any group.
- (3) A qualifying transformer vehicle that is not a member of a multinational group is also a DTT excluded entity.
@@ -7315,7 +7315,7 @@
##### 268
Section [232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/3/2023-07-31) (permanent establishment treated as distinct from entity it is a permanent establishment of) applies for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) as it applies for the purposes of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31).
Section [232](https://www.legislation.gov.uk/ukpga/2023/30/section/232/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/232/3/2023-08-01) (permanent establishment treated as distinct from entity it is a permanent establishment of) applies for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) as it applies for the purposes of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01).
### Chapter 2 — Charge to domestic top-up tax
@@ -7341,17 +7341,17 @@
- (b) the person is resident in the United Kingdom for the purposes of that tax.
- (4) Where a partnership that is not a body corporate is chargeable to domestic top-up tax as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/269/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/269/1/a/2023-07-31)—
- (4) Where a partnership that is not a body corporate is chargeable to domestic top-up tax as a result of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/269/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/269/1/a/2023-08-01)—
- (a) the person liable to pay the tax is the responsible partners, and
- (b) the liability of the responsible partners to do so is joint and several.
- (5) The references in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/269/4/2023-07-31) to “the responsible partners” are to all the persons who are members of the partnership at any time during the accounting period.
- (6) A partnership is to be regarded for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/269/2023-07-31) as continuing to be the same partnership regardless of a change in membership, provided that a person who was a member before the change remains a member after the change.
- (7) Where more than one person is chargeable to tax in relation to the same qualifying entity as a result of the application of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/269/2/2023-07-31), each of those persons is jointly and severally liable to domestic top-up tax.
- (5) The references in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/269/4/2023-08-01) to “the responsible partners” are to all the persons who are members of the partnership at any time during the accounting period.
- (6) A partnership is to be regarded for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/269/2023-08-01) as continuing to be the same partnership regardless of a change in membership, provided that a person who was a member before the change remains a member after the change.
- (7) Where more than one person is chargeable to tax in relation to the same qualifying entity as a result of the application of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/269/2/2023-08-01), each of those persons is jointly and severally liable to domestic top-up tax.
#### Amount charged
@@ -7367,7 +7367,7 @@
- (2) Generally, a qualifying entity will have a top-up amount for an accounting period if it has profits for a period and its effective tax rate (or, where it is a member of a group, that of its group) is less than 15%.
- (3) [Chapter 3](https://www.legislation.gov.uk/ukpga/2023/30/part/4/chapter/3/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-07-31) makes provision, principally by applying (with modifications) provisions in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), for determining—
- (3) [Chapter 3](https://www.legislation.gov.uk/ukpga/2023/30/part/4/chapter/3/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/4/2023-08-01) makes provision, principally by applying (with modifications) provisions in [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), for determining—
- (a) the effective tax rate of a qualifying entity by reference—
@@ -7395,9 +7395,9 @@
- (b) the responsible member must pay any amount by way of domestic top-up tax any other member of the group would have been required to pay if the election had not been made.
- (3) Subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/271/2/2023-07-31) does not apply if the responsible member has not consented to the election.
- (4) Paragraph [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under this section, and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.
- (3) Subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/271/2/2023-08-01) does not apply if the responsible member has not consented to the election.
- (4) Paragraph [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under this section, and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.
### Chapter 3 — Application of multinational top-up tax provisions
@@ -7405,33 +7405,33 @@
##### 272
- (1) Subject as follows, [Chapters 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/3/2023-07-31) to [6](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/6/2023-07-31), [8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-07-31) and [9](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/9/2023-07-31) of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) apply for the purposes (“domestic purposes”) of determining whether a qualifying entity that is a member of a group has top-up amounts or additional top-up amounts, and the extent of those amounts, as they apply for the purpose of determining the same for the purposes of multinational top-up tax.
- (1) Subject as follows, [Chapters 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/3/2023-08-01) to [6](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/6/2023-08-01), [8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-08-01) and [9](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/9/2023-08-01) of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) apply for the purposes (“domestic purposes”) of determining whether a qualifying entity that is a member of a group has top-up amounts or additional top-up amounts, and the extent of those amounts, as they apply for the purpose of determining the same for the purposes of multinational top-up tax.
- (2) Where the group is not a multinational group, that Part has effect for domestic purposes as if any reference to a multinational group were to a group.
- (3) [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) has effect for those purposes as if the following provisions (which provide for reductions of top-up amounts where a qualifying domestic top-up tax is payable) were omitted—
- (a) in [section 194](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2023-07-31), subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2/2023-07-31) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/7/2023-07-31);
- (b) in [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31), subsections [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/3/2023-07-31) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/7/2023-07-31);
- (c) in [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31), subsections [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/4/2023-07-31) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/8/2023-07-31).
- (4) The following provisions of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) are of no practical application for domestic purposes and accordingly that Part has effect for those purposes as if they were omitted—
- (a) [section 173](https://www.legislation.gov.uk/ukpga/2023/30/section/173/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/173/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/173/1/b/2023-07-31) and sections [189](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-07-31) to [192](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-07-31) (eligible distribution tax systems);
- (b) [section 225](https://www.legislation.gov.uk/ukpga/2023/30/section/225/2023-07-31) (attribution of top-up amounts of investment entities).
- (3) [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) has effect for those purposes as if the following provisions (which provide for reductions of top-up amounts where a qualifying domestic top-up tax is payable) were omitted—
- (a) in [section 194](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2023-08-01), subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2/2023-08-01) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/7/2023-08-01);
- (b) in [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01), subsections [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/3/2023-08-01) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/7/2023-08-01);
- (c) in [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01), subsections [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/4/2023-08-01) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/8/2023-08-01).
- (4) The following provisions of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) are of no practical application for domestic purposes and accordingly that Part has effect for those purposes as if they were omitted—
- (a) [section 173](https://www.legislation.gov.uk/ukpga/2023/30/section/173/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/173/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/173/1/b/2023-08-01) and sections [189](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-08-01) to [192](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-08-01) (eligible distribution tax systems);
- (b) [section 225](https://www.legislation.gov.uk/ukpga/2023/30/section/225/2023-08-01) (attribution of top-up amounts of investment entities).
- (5) Where—
- (a) an election is made under [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) in relation to a member of a multinational group (whether or not a qualifying entity) for the purposes of multinational top-up tax, and
- (a) an election is made under [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) in relation to a member of a multinational group (whether or not a qualifying entity) for the purposes of multinational top-up tax, and
- (b) if the election had effect for domestic purposes, it would affect the calculation of top-up amounts or additional top-up amounts,
that election has effect for domestic purposes.
- (6) For the purposes of subsection [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/272/5/2023-07-31), a foreign IIR election is to be treated as an election made under [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31).
- (6) For the purposes of subsection [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/272/5/2023-08-01), a foreign IIR election is to be treated as an election made under [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01).
- (7) A “*foreign IIR election*” means an election—
@@ -7445,23 +7445,23 @@
- (8) For domestic purposes—
- (a) [section 134](https://www.legislation.gov.uk/ukpga/2023/30/section/134/2023-07-31) (underlying profits as determined for statements of ultimate parent) has effect as if, after subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/3/2023-07-31), there were inserted—
> (3A) The conditions in subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/3/2023-07-31) are not required to be met if—
- (a) [section 134](https://www.legislation.gov.uk/ukpga/2023/30/section/134/2023-08-01) (underlying profits as determined for statements of ultimate parent) has effect as if, after subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/3/2023-08-01), there were inserted—
> (3A) The conditions in subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/3/2023-08-01) are not required to be met if—
> (a) the alternative accounting standard is UK GAAP,
> (b) all members of the group are located in the United Kingdom, and
> (c) the filing member of the group has made an election in a self-assessment return that the underlying profits of all members of the group are to be determined on the basis of UK GAAP.
> (3B) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (long term elections) applies to an election under subsection [(3A)](#p17588), and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.
> (3B) Paragraph [1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (long term elections) applies to an election under subsection [(3A)](#p17588), and has effect for that purpose as if references to an information return or overseas return notification were to a self-assessment return or below-threshold notification.
;
- (b) [section 176](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2023-07-31) (amounts to be reflected in covered tax balance) has effect as if, for subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/i/2023-07-31) (amounts allocated from another member of the group), there were substituted—
> (i) any amount allocated to the member from another member of the group under section [178](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/1/2023-07-31) (reallocation of tax expense).
- (b) [section 176](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2023-08-01) (amounts to be reflected in covered tax balance) has effect as if, for subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/176/2/i/2023-08-01) (amounts allocated from another member of the group), there were substituted—
> (i) any amount allocated to the member from another member of the group under section [178](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/1/2023-08-01) (reallocation of tax expense).
;
- (c) [section 178](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-07-31) (reallocation of tax expense) has effect as if—
- (c) [section 178](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-08-01) (reallocation of tax expense) has effect as if—
- (i) after subsection (1) there were inserted—
@@ -7469,22 +7469,22 @@
;
- (ii) subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2/2023-07-31) (restriction on allocation of tax expense in respect of mobile income) were omitted;
- (d) [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-07-31) (controlled foreign companies) has effect as if subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2/2023-07-31) (restriction on allocation to CFC) were omitted;
- (e) [section 193](https://www.legislation.gov.uk/ukpga/2023/30/section/193/2023-07-31) (calculation of top-up amounts) has effect as if the total top-up amount referred to in that section included any top-up amounts or additional top-up amounts of investment entities determined under sections [220](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2023-07-31) to [224](https://www.legislation.gov.uk/ukpga/2023/30/section/224/2023-07-31).
- (ii) subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2/2023-08-01) (restriction on allocation of tax expense in respect of mobile income) were omitted;
- (d) [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-08-01) (controlled foreign companies) has effect as if subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2/2023-08-01) (restriction on allocation to CFC) were omitted;
- (e) [section 193](https://www.legislation.gov.uk/ukpga/2023/30/section/193/2023-08-01) (calculation of top-up amounts) has effect as if the total top-up amount referred to in that section included any top-up amounts or additional top-up amounts of investment entities determined under sections [220](https://www.legislation.gov.uk/ukpga/2023/30/section/220/2023-08-01) to [224](https://www.legislation.gov.uk/ukpga/2023/30/section/224/2023-08-01).
#### Determining top-up amounts of entity that is not a member of a group
##### 273
- (1) [Chapters 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/3/2023-07-31) to [6](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/6/2023-07-31), [8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-07-31) and [9](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/9/2023-07-31) of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) apply for the purposes (“domestic entity purposes”) of determining whether a qualifying entity that is not a member of a group has top-up amounts or additional top-up amounts, and the extent of those amounts, as they apply for the purpose of determining the same for the purposes of multinational top-up tax.
- (2) Chapter 3 of that Part has effect for domestic entity purposes as if for [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-07-31) there were substituted—
- (1) [Chapters 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/3/2023-08-01) to [6](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/6/2023-08-01), [8](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/8/2023-08-01) and [9](https://www.legislation.gov.uk/ukpga/2023/30/part/3/chapter/9/2023-08-01) of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) apply for the purposes (“domestic entity purposes”) of determining whether a qualifying entity that is not a member of a group has top-up amounts or additional top-up amounts, and the extent of those amounts, as they apply for the purpose of determining the same for the purposes of multinational top-up tax.
- (2) Chapter 3 of that Part has effect for domestic entity purposes as if for [section 132](https://www.legislation.gov.uk/ukpga/2023/30/section/132/2023-08-01) there were substituted—
> (132) The effective tax rate of a qualifying entity that is not a member of a group is determined as follows—
> - *Step 1* Determine, in accordance with Chapter 4 of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), the adjusted profits for that period of that member.
> - *Step 1* Determine, in accordance with Chapter 4 of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), the adjusted profits for that period of that member.
> - *Step 2* If, on determining those adjusted profits, the member has not made a profit, the effective tax rate is to be treated as 15%. Otherwise, proceed to Step 3.
> - *Step 3* Determine the covered tax balance of the member for the period (which may be negative) in accordance with Chapter 5 of Part 3.
> - *Step 4* If that balance is nil the effective tax rate is 0%. Otherwise, proceed to Step 5.
@@ -7497,79 +7497,79 @@
- (b) any reference (however framed) to the consolidated financial statements of the ultimate parent were to the qualifying financial statements of the entity;
- (c) in [section 194](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2023-07-31) (total top-up amount), subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2/2023-07-31) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/7/2023-07-31) were omitted;
- (d) in [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-07-31) (additional top-up amounts: covered taxes less than expected), subsections [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/3/2023-07-31) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/7/2023-07-31) were omitted;
- (e) in [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-07-31) (additional top-up amounts: recalculations), subsections [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/4/2023-07-31) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/8/2023-07-31) were omitted.
- (4) [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) has effect for those purposes as if the following provisions (which are only relevant to groups or have no relevance for domestic purposes) were omitted—
- (a) in [section 134](https://www.legislation.gov.uk/ukpga/2023/30/section/134/2023-07-31) (underlying profits as determined for statements of ultimate parent), subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/2/2023-07-31) to [(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/9/2023-07-31);
- (b) [section 135](https://www.legislation.gov.uk/ukpga/2023/30/section/135/2023-07-31) (permanent establishments);
- (c) [section 139](https://www.legislation.gov.uk/ukpga/2023/30/section/139/2023-07-31) (consolidation adjustments);
- (d) [section 140](https://www.legislation.gov.uk/ukpga/2023/30/section/140/2023-07-31) (purchase accounting adjustments);
- (e) in [section 141](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2023-07-31) (general exclusion of dividends), subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/3/c/2023-07-31);
- (f) [section 149](https://www.legislation.gov.uk/ukpga/2023/30/section/149/2023-07-31) (arm’s length requirement);
- (g) [section 150](https://www.legislation.gov.uk/ukpga/2023/30/section/150/2023-07-31) (transactions between group members);
- (h) [section 154](https://www.legislation.gov.uk/ukpga/2023/30/section/154/2023-07-31) (exclusion of qualifying intra-group financing arrangement expenses);
- (i) sections [159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-07-31) and [160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-07-31) (adjustments applicable to permanent establishments);
- (j) in [section 163](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-07-31) (election to spread capital gains), subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/163/3/2023-07-31);
- (k) [section 164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-07-31) (election to exclude intra-group transactions);
- (l) [section 167](https://www.legislation.gov.uk/ukpga/2023/30/section/167/2023-07-31) (underlying profits of member of group seen as transparent);
- (m) in [section 168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-07-31) (underlying profits of flow-through entities), subsection [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/168/8/2023-07-31);
- (n) [section 169](https://www.legislation.gov.uk/ukpga/2023/30/section/169/2023-07-31) (non-tax resident entities to be treated as flow-through entities);
- (o) [section 170](https://www.legislation.gov.uk/ukpga/2023/30/section/170/2023-07-31) (adjustments for ultimate parent that is flow-through entity);
- (p) section [172](https://www.legislation.gov.uk/ukpga/2023/30/section/172/2023-07-31) (ultimate parent subject to deductible dividend regime);
- (q) [section 177](https://www.legislation.gov.uk/ukpga/2023/30/section/177/2023-07-31) (allocation of covered taxes: permanent establishments);
- (r) [section 178](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-07-31) (reallocation of tax expense);
- (s) [sections 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-07-31) and [180](https://www.legislation.gov.uk/ukpga/2023/30/section/180/2023-07-31) (controlled foreign company tax regimes);
- (t) [section 181](https://www.legislation.gov.uk/ukpga/2023/30/section/181/2023-07-31) (distributions from other group members);
- (u) [section 183](https://www.legislation.gov.uk/ukpga/2023/30/section/183/2023-07-31) (qualifying foreign tax credits);
- (v) sections [189](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-07-31) to [192](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-07-31) (deemed distribution tax election);
- (w) sections [208](https://www.legislation.gov.uk/ukpga/2023/30/section/208/2023-07-31) to [212](https://www.legislation.gov.uk/ukpga/2023/30/section/212/2023-07-31) (restructuring of groups);
- (x) sections [213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-07-31) to [215](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-07-31) (elections in relation to investment entities);
- (y) in [section 216](https://www.legislation.gov.uk/ukpga/2023/30/section/216/2023-07-31) (election where assets and liabilities adjusted to fair value), subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/216/6/2023-07-31);
- (z) sections [226](https://www.legislation.gov.uk/ukpga/2023/30/section/226/2023-07-31) to [229](https://www.legislation.gov.uk/ukpga/2023/30/section/229/2023-07-31) (joint venture groups, minority owned members and multi-parent groups).
- (c) in [section 194](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2023-08-01) (total top-up amount), subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/2/2023-08-01) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/194/7/2023-08-01) were omitted;
- (d) in [section 203](https://www.legislation.gov.uk/ukpga/2023/30/section/203/2023-08-01) (additional top-up amounts: covered taxes less than expected), subsections [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/3/2023-08-01) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/203/7/2023-08-01) were omitted;
- (e) in [section 206](https://www.legislation.gov.uk/ukpga/2023/30/section/206/2023-08-01) (additional top-up amounts: recalculations), subsections [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/4/2023-08-01) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/206/8/2023-08-01) were omitted.
- (4) [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) has effect for those purposes as if the following provisions (which are only relevant to groups or have no relevance for domestic purposes) were omitted—
- (a) in [section 134](https://www.legislation.gov.uk/ukpga/2023/30/section/134/2023-08-01) (underlying profits as determined for statements of ultimate parent), subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/2/2023-08-01) to [(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/134/9/2023-08-01);
- (b) [section 135](https://www.legislation.gov.uk/ukpga/2023/30/section/135/2023-08-01) (permanent establishments);
- (c) [section 139](https://www.legislation.gov.uk/ukpga/2023/30/section/139/2023-08-01) (consolidation adjustments);
- (d) [section 140](https://www.legislation.gov.uk/ukpga/2023/30/section/140/2023-08-01) (purchase accounting adjustments);
- (e) in [section 141](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2023-08-01) (general exclusion of dividends), subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/2/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/141/3/c/2023-08-01);
- (f) [section 149](https://www.legislation.gov.uk/ukpga/2023/30/section/149/2023-08-01) (arm’s length requirement);
- (g) [section 150](https://www.legislation.gov.uk/ukpga/2023/30/section/150/2023-08-01) (transactions between group members);
- (h) [section 154](https://www.legislation.gov.uk/ukpga/2023/30/section/154/2023-08-01) (exclusion of qualifying intra-group financing arrangement expenses);
- (i) sections [159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-08-01) and [160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-08-01) (adjustments applicable to permanent establishments);
- (j) in [section 163](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-08-01) (election to spread capital gains), subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/163/3/2023-08-01);
- (k) [section 164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-08-01) (election to exclude intra-group transactions);
- (l) [section 167](https://www.legislation.gov.uk/ukpga/2023/30/section/167/2023-08-01) (underlying profits of member of group seen as transparent);
- (m) in [section 168](https://www.legislation.gov.uk/ukpga/2023/30/section/168/2023-08-01) (underlying profits of flow-through entities), subsection [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/168/8/2023-08-01);
- (n) [section 169](https://www.legislation.gov.uk/ukpga/2023/30/section/169/2023-08-01) (non-tax resident entities to be treated as flow-through entities);
- (o) [section 170](https://www.legislation.gov.uk/ukpga/2023/30/section/170/2023-08-01) (adjustments for ultimate parent that is flow-through entity);
- (p) section [172](https://www.legislation.gov.uk/ukpga/2023/30/section/172/2023-08-01) (ultimate parent subject to deductible dividend regime);
- (q) [section 177](https://www.legislation.gov.uk/ukpga/2023/30/section/177/2023-08-01) (allocation of covered taxes: permanent establishments);
- (r) [section 178](https://www.legislation.gov.uk/ukpga/2023/30/section/178/2023-08-01) (reallocation of tax expense);
- (s) [sections 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-08-01) and [180](https://www.legislation.gov.uk/ukpga/2023/30/section/180/2023-08-01) (controlled foreign company tax regimes);
- (t) [section 181](https://www.legislation.gov.uk/ukpga/2023/30/section/181/2023-08-01) (distributions from other group members);
- (u) [section 183](https://www.legislation.gov.uk/ukpga/2023/30/section/183/2023-08-01) (qualifying foreign tax credits);
- (v) sections [189](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-08-01) to [192](https://www.legislation.gov.uk/ukpga/2023/30/section/192/2023-08-01) (deemed distribution tax election);
- (w) sections [208](https://www.legislation.gov.uk/ukpga/2023/30/section/208/2023-08-01) to [212](https://www.legislation.gov.uk/ukpga/2023/30/section/212/2023-08-01) (restructuring of groups);
- (x) sections [213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-08-01) to [215](https://www.legislation.gov.uk/ukpga/2023/30/section/215/2023-08-01) (elections in relation to investment entities);
- (y) in [section 216](https://www.legislation.gov.uk/ukpga/2023/30/section/216/2023-08-01) (election where assets and liabilities adjusted to fair value), subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/216/6/2023-08-01);
- (z) sections [226](https://www.legislation.gov.uk/ukpga/2023/30/section/226/2023-08-01) to [229](https://www.legislation.gov.uk/ukpga/2023/30/section/229/2023-08-01) (joint venture groups, minority owned members and multi-parent groups).
#### Application of section 262
##### 274
The power in [section 262](https://www.legislation.gov.uk/ukpga/2023/30/section/262/2023-07-31) (power to amend to ensure consistency with Pillar Two) applies in relation to this Part as it applies to [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31).
The power in [section 262](https://www.legislation.gov.uk/ukpga/2023/30/section/262/2023-08-01) (power to amend to ensure consistency with Pillar Two) applies in relation to this Part as it applies to [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01).
#### Application of Schedule 14
##### 275
[Schedule 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/2023-07-31)—
- (a) applies [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) for the purpose of the administration of domestic top-up tax;
[Schedule 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/2023-08-01)—
- (a) applies [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) for the purpose of the administration of domestic top-up tax;
- (b) makes related amendments.
@@ -7577,19 +7577,19 @@
##### 276
The transitional provision in [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31) applies in relation to domestic top-up tax as it applies in relation to multinational top-up tax as if—
The transitional provision in [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01) applies in relation to domestic top-up tax as it applies in relation to multinational top-up tax as if—
- (a) references in that Schedule to a multinational group were to a group;
- (b) where a qualifying entity is a member of a group and all members of the group are located in the United Kingdom, the following provisions of that Schedule (which have no relevance in such a case) were omitted—
- (i) paragraph [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/b/2023-07-31) and [(d)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/d/2023-07-31), and [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/7/2023-07-31) and [(8)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/8/2023-07-31) (country-by-country reporting);
- (ii) the words “that are used for preparation of the group’s country-by-country report” in paragraph [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2/2023-07-31);
- (iii) paragraph [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/5/2023-07-31) (use of statements used for preparation of country-by-country report);
- (iv) in [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2/2023-07-31), the words from “ignoring” to the end.
- (i) paragraph [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/b/2023-08-01) and [(d)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/d/2023-08-01), and [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/7/2023-08-01) and [(8)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/8/2023-08-01) (country-by-country reporting);
- (ii) the words “that are used for preparation of the group’s country-by-country report” in paragraph [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2/2023-08-01);
- (iii) paragraph [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/5/2023-08-01) (use of statements used for preparation of country-by-country report);
- (iv) in [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2/2023-08-01), the words from “ignoring” to the end.
- (c) where a qualifying entity is not a member of a group—
@@ -7597,15 +7597,15 @@
- (ii) references in that Schedule (however framed) to the consolidated financial statements of the ultimate parent were to the qualifying financial statements of the entity;
- (iii) [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/2023-07-31) were omitted;
- (iv) the provisions mentioned in [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/276/b/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/276/b/i/2023-07-31) to [(iv)](https://www.legislation.gov.uk/ukpga/2023/30/section/276/b/iv/2023-07-31) were omitted.
- (iii) [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/2023-08-01) were omitted;
- (iv) the provisions mentioned in [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/section/276/b/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/276/b/i/2023-08-01) to [(iv)](https://www.legislation.gov.uk/ukpga/2023/30/section/276/b/iv/2023-08-01) were omitted.
#### Index of defined expressions
##### 277
See the table in [Schedule 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/17/2023-07-31) for a list of terms defined for Part [3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), but which also contains some terms defined for this Part, and the provisions that define or explain them.
See the table in [Schedule 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/17/2023-08-01) for a list of terms defined for Part [3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), but which also contains some terms defined for this Part, and the provisions that define or explain them.
#### Domestic top-up tax to apply from 31 December 2023
@@ -7623,9 +7623,9 @@
- (1) If a qualifying generating undertaking has exceptional generation receipts for a qualifying period, that undertaking is liable to pay a charge equal to 45% of those exceptional receipts.
- (2) The charge is referred to in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) as the “electricity generator levy”.
- (3) A generating undertaking is “qualifying” in a qualifying period if generation attributed to it under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) (see [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31), but also [sections 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31) to [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-07-31)) for that period exceeds the levy threshold.
- (2) The charge is referred to in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) as the “electricity generator levy”.
- (3) A generating undertaking is “qualifying” in a qualifying period if generation attributed to it under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) (see [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01), but also [sections 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01) to [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-08-01)) for that period exceeds the levy threshold.
- (4) The levy threshold for a qualifying period is—
@@ -7635,13 +7635,13 @@
- (5) To determine if a generating undertaking has exceptional generation receipts for a qualifying period and (if so) the amount of those receipts, take the following steps—
- *Step 1 (attribute generation receipts)* Determine the amount of generation receipts to be attributed to the undertaking for the period in accordance with [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-07-31).
- *Step 2 (determine the maximum amount of receipts that would not be exceptional)* Multiply the amount of electricity generation (expressed in megawatt hours) attributed to the undertaking for the period (see [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)) by the benchmark amount (see [section 281](https://www.legislation.gov.uk/ukpga/2023/30/section/281/2023-07-31)).
- *Step 1 (attribute generation receipts)* Determine the amount of generation receipts to be attributed to the undertaking for the period in accordance with [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-08-01).
- *Step 2 (determine the maximum amount of receipts that would not be exceptional)* Multiply the amount of electricity generation (expressed in megawatt hours) attributed to the undertaking for the period (see [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)) by the benchmark amount (see [section 281](https://www.legislation.gov.uk/ukpga/2023/30/section/281/2023-08-01)).
- *Step 3 (determine whether undertaking has receipts that exceed that amount)* Subtract the result of Step 2 from the amount determined under Step 1. If the result of this Step is nil or less, the undertaking does not have any exceptional generation receipts (otherwise, carry on to Step 4).
- *Step 4 (subtract allowable costs)* Determine the amount of allowable costs (if any) to be attributed to the undertaking for the period (see [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-07-31)) and subtract that amount from the result of Step 3. If the result of this Step is nil or less, the undertaking does not have any exceptional generation receipts (otherwise, carry on to Step 5).
- *Step 4 (subtract allowable costs)* Determine the amount of allowable costs (if any) to be attributed to the undertaking for the period (see [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-08-01)) and subtract that amount from the result of Step 3. If the result of this Step is nil or less, the undertaking does not have any exceptional generation receipts (otherwise, carry on to Step 5).
- *Step 5 (apply revenue allowance)* Subtract the revenue allowance for the period from the result of Step 4.
@@ -7653,21 +7653,21 @@
- (b) where the period is shorter than a year, £10 million multiplied by the amount given by dividing the number of days in the period by 365.
- (7) Other provisions in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) may affect the determination of exceptional generation receipts, including—
- (a) [section 293](https://www.legislation.gov.uk/ukpga/2023/30/section/293/2023-07-31), which contains provision attributing amounts from a joint venture to its participants,
- (b) [sections 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31) and [295](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2023-07-31), which contain provision that attributes generation to participants in a joint venture in certain circumstances,
- (c) [sections 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-07-31) and [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-07-31), which contain provision that attributes generation to significant minority shareholders in a generating undertaking in certain circumstances, and
- (d) [section 308](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-07-31), which contains anti-avoidance provision.
- (7) Other provisions in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) may affect the determination of exceptional generation receipts, including—
- (a) [section 293](https://www.legislation.gov.uk/ukpga/2023/30/section/293/2023-08-01), which contains provision attributing amounts from a joint venture to its participants,
- (b) [sections 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01) and [295](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2023-08-01), which contain provision that attributes generation to participants in a joint venture in certain circumstances,
- (c) [sections 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-08-01) and [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-08-01), which contain provision that attributes generation to significant minority shareholders in a generating undertaking in certain circumstances, and
- (d) [section 308](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-08-01), which contains anti-avoidance provision.
#### Key concepts (generating undertaking etc)
##### 280
- (1) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31)—
- (1) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01)—
- “*company*” has the meaning it has in the Corporation Tax Acts (see section 1121 of CTA 2010);
@@ -7679,7 +7679,7 @@
- a generating station is “*subject*”— to a contract for difference or an investment contract to the extent that its output may give rise to payments under such an instrument, and to feed-in tariff export payments to the extent its output gives rise to such payments, and to a revenue collection contract if the station is the subject of such a contract.
- (2) References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) to a “*qualifying period*” in relation to a generating undertaking means—
- (2) References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) to a “*qualifying period*” in relation to a generating undertaking means—
- (a) the period, if any, between the beginning of 1 January 2023 and the commencement of the first accounting period of the undertaking that commences on or after 1 January 2023,
@@ -7689,13 +7689,13 @@
- (d) the period, if any, between the end of the last accounting period ending on or before 31 March 2028 and the end of 31 March 2028.
- (3) References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) to an “accounting period” are—
- (3) References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) to an “accounting period” are—
- (a) in relation to a company within the charge to corporation tax, to an accounting period for the purposes of that tax, or
- (b) in relation to a company not within the charge to corporation tax, to a period that would be an accounting period for the purposes of that tax were the company within the charge to that tax and had first come within it on 1 January 2023.
See also [section 288](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2023-07-31), which provides that the accounting period of a generating undertaking that is a group is the accounting period of its lead member.
See also [section 288](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2023-08-01), which provides that the accounting period of a generating undertaking that is a group is the accounting period of its lead member.
#### Benchmark amount
@@ -7711,15 +7711,15 @@
- (3) Before the commencement of each of the financial years ending in 2025 to 2028, His Majesty’s Revenue and Customs (referred to elsewhere in this Part as “HMRC”) must publish the benchmark amount for that financial year in such manner as they consider appropriate.
- (4) [Subsections (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/281/5/2023-07-31) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/281/7/2023-07-31) apply where 2 financial years fall within a qualifying period.
- (4) [Subsections (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/281/5/2023-08-01) to [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/281/7/2023-08-01) apply where 2 financial years fall within a qualifying period.
- (5) Generation attributed to a generating undertaking for that period is to be allocated, on a fair and reasonable basis, between those financial years.
- (6) The calculation in Step 2 of [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) is to be applied separately to the generation allocated to each of those financial years by reference to the benchmark amount for that year.
- (6) The calculation in Step 2 of [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) is to be applied separately to the generation allocated to each of those financial years by reference to the benchmark amount for that year.
- (7) Accordingly, the result of that Step is to be the sum of those calculations.
- (8) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/281/2023-07-31)—
- (8) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/281/2023-08-01)—
- “*consumer prices index*” means the all items consumer prices index published by the Statistics Board;
@@ -7737,11 +7737,11 @@
- (b) the amount given by multiplying—
- (i) the amount (if any) of grid connected electricity generation for the period of a relevant generating station that is operated by a qualifying partnership in relation to the undertaking (see [section 291](https://www.legislation.gov.uk/ukpga/2023/30/section/291/2023-07-31)), by
- (i) the amount (if any) of grid connected electricity generation for the period of a relevant generating station that is operated by a qualifying partnership in relation to the undertaking (see [section 291](https://www.legislation.gov.uk/ukpga/2023/30/section/291/2023-08-01)), by
- (ii) the qualifying proportion for that period (see that section).
- (2) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31), a generating station is a generating station of a generating undertaking if—
- (2) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01), a generating station is a generating station of a generating undertaking if—
- (a) in the case of an undertaking that is a company, it is operated by that company otherwise than in partnership with another person, and
@@ -7759,9 +7759,9 @@
- (4) But for the purposes only of—
- (a) [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/3/2023-07-31) (application of levy threshold), and
- (b) Step 2 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) (determination of maximum amount of receipts that would not be exceptional),
- (a) [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/3/2023-08-01) (application of levy threshold), and
- (b) Step 2 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) (determination of maximum amount of receipts that would not be exceptional),
ignore any electricity that was expected to be, but was not, generated by a relevant generating station unless the electricity was not generated in connection with an accepted bid to decrease generation under a settlement code.
@@ -7769,9 +7769,9 @@
##### 283
- (1) Where generation is attributed to a generating undertaking under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31) for a qualifying period, generation receipts in respect of that generation are to be attributed to that undertaking for that period.
- (2) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) “*generation receipts*” means amounts that it is fair and reasonable to attribute to generation attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31) (whether or not they are received by, or otherwise arise to the operator of the station) on the basis that the amounts reflect, directly or indirectly, the amount realised (or to be realised) for the wholesale purchase of electricity arising from that generation (whether or not the electricity is actually generated).
- (1) Where generation is attributed to a generating undertaking under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01) for a qualifying period, generation receipts in respect of that generation are to be attributed to that undertaking for that period.
- (2) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) “*generation receipts*” means amounts that it is fair and reasonable to attribute to generation attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01) (whether or not they are received by, or otherwise arise to the operator of the station) on the basis that the amounts reflect, directly or indirectly, the amount realised (or to be realised) for the wholesale purchase of electricity arising from that generation (whether or not the electricity is actually generated).
- (3) In determining the amounts realised (or to be realised) for the wholesale purchase of electricity the following are, amongst other things, to be taken into account—
@@ -7779,11 +7779,11 @@
- (b) imbalance charges under such a code;
- (c) payments and receipts under arrangements whose principal purpose is to act as a hedge of the exposure to changes in the price of electricity where those arrangements relate to generation attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31).
- (4) The arrangements referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/3/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/3/c/2023-07-31) may include arrangements comprising, or that include the use of, options, futures and contracts for difference (within the meaning of Part 7 of CTA 2009).
- (5) The Treasury may by regulations make provision about when amounts can (and cannot) be fairly and reasonably attributed to generation under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2/2023-07-31).
- (c) payments and receipts under arrangements whose principal purpose is to act as a hedge of the exposure to changes in the price of electricity where those arrangements relate to generation attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01).
- (4) The arrangements referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/3/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/3/c/2023-08-01) may include arrangements comprising, or that include the use of, options, futures and contracts for difference (within the meaning of Part 7 of CTA 2009).
- (5) The Treasury may by regulations make provision about when amounts can (and cannot) be fairly and reasonably attributed to generation under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2/2023-08-01).
- (6) Regulations may also provide that—
@@ -7793,19 +7793,19 @@
“*Specified*” means specified in the regulations.
- (7) [Subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/8/2023-07-31) applies to generation attributed to a generating undertaking under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31) if—
- (7) [Subsection (8)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/8/2023-08-01) applies to generation attributed to a generating undertaking under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01) if—
- (a) provision, within the meaning of Part 4 of TIOPA 2010, has been made or imposed as between two persons by means of a transaction or series of transactions,
- (b) that provision relates to that generation,
- (c) if instead of that provision the arm's length provision had been made or imposed, one of those persons would have an amount that it is fair and reasonable to attribute the generating undertaking in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2/2023-07-31), and
- (c) if instead of that provision the arm's length provision had been made or imposed, one of those persons would have an amount that it is fair and reasonable to attribute the generating undertaking in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2/2023-08-01), and
- (d) were that person within the charge to corporation tax, their profits and losses would be calculated (as a result of Part 4 of TIOPA 2010) as if the arm's length provision had been made or imposed instead of the provision actually made or imposed.
- (8) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/283/8/2023-07-31) applies to generation attributed to a generating undertaking, generation receipts in respect of it are to be determined as if the arm's length provision had been made or imposed instead of the provision actually made or imposed.
- (9) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) “the arm's length provision” has the meaning it has in Part 4 of TIOPA 2010.
- (8) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/283/8/2023-08-01) applies to generation attributed to a generating undertaking, generation receipts in respect of it are to be determined as if the arm's length provision had been made or imposed instead of the provision actually made or imposed.
- (9) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) “the arm's length provision” has the meaning it has in Part 4 of TIOPA 2010.
#### Allowable costs
@@ -7813,11 +7813,11 @@
- (1) “*Allowable costs*” means—
- (a) exceptional generation fuel costs of relevant generating stations (see [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-07-31)),
- (b) exceptional revenue sharing costs in respect of relevant generating stations (see [section 286](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2023-07-31)), and
- (c) qualifying electricity purchase costs (see [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/6/2023-07-31)).
- (a) exceptional generation fuel costs of relevant generating stations (see [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-08-01)),
- (b) exceptional revenue sharing costs in respect of relevant generating stations (see [section 286](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2023-08-01)), and
- (c) qualifying electricity purchase costs (see [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/6/2023-08-01)).
- (2) Allowable costs may only be attributed to a generating undertaking for a qualifying period to the extent—
@@ -7829,17 +7829,17 @@
- (3) Allowable costs are only to be attributed to a generating undertaking if a claim is made for those allowable costs in a company tax return.
In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) “*company tax return*” has the same meaning as in Schedule 18 to FA 1998 (see paragraph 3(1) of that Schedule).
- (4) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/5/2023-07-31) applies to allowable costs of a person (“the cost holder”) to be attributed to a generating undertaking if—
In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) “*company tax return*” has the same meaning as in Schedule 18 to FA 1998 (see paragraph 3(1) of that Schedule).
- (4) [Subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/5/2023-08-01) applies to allowable costs of a person (“the cost holder”) to be attributed to a generating undertaking if—
- (a) the costs arise as a result of provision made or imposed as between the cost holder and another person by means of a transaction or series of transactions, and
- (b) were the cost holder within the charge to corporation tax, the cost holder’s profits and losses would be calculated (as a result of Part 4 of TIOPA 2010) as if the arm's length provision had been made or imposed instead of the provision actually made or imposed.
- (5) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/283/8/2023-07-31) applies to allowable costs, the amount of those costs is to be determined as if that arm's length provision had been made or imposed instead of the provision it arose as a result of.
- (6) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-07-31) “*qualifying electricity purchase costs*” means costs reasonably incurred in the purchase of electricity in order to comply with the terms of an agreement under which it was expected that a relevant generating station will generate but does not do so.
- (5) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/283/8/2023-08-01) applies to allowable costs, the amount of those costs is to be determined as if that arm's length provision had been made or imposed instead of the provision it arose as a result of.
- (6) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-08-01) “*qualifying electricity purchase costs*” means costs reasonably incurred in the purchase of electricity in order to comply with the terms of an agreement under which it was expected that a relevant generating station will generate but does not do so.
#### Exceptional generation fuel costs
@@ -7867,7 +7867,7 @@
- (b) £65 per megawatt hour.
- (4) Subject to [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/5/2023-07-31), the reference period that may be specified in the claim must—
- (4) Subject to [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/5/2023-08-01), the reference period that may be specified in the claim must—
- (a) be a period of at least 12 months in which there is a period of 3 months where the generating station was generating on 50% or more of the days in that 3 month period,
@@ -7875,11 +7875,11 @@
- (c) end no later than 1 March 2020.
- (5) Where a reference period cannot be specified in the claim in accordance with [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/4/2023-07-31) because there is no period of at least 12 months between 1 January 2017 and 1 March 2020 in which there is a period of 3 months where the generating station was generating on 50% or more of the days in that 3 month period—
- (5) Where a reference period cannot be specified in the claim in accordance with [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/4/2023-08-01) because there is no period of at least 12 months between 1 January 2017 and 1 March 2020 in which there is a period of 3 months where the generating station was generating on 50% or more of the days in that 3 month period—
- (a) a period of 12 months commencing no earlier than 1 January 2017 and ending no later than 1 March 2020 may be specified as the reference period,
- (b) the average generation fuel costs of the station for the purposes of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/3/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/3/a/2023-07-31) is to be determined as a fair and reasonable estimate of what those costs would have been—
- (b) the average generation fuel costs of the station for the purposes of [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/3/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/3/a/2023-08-01) is to be determined as a fair and reasonable estimate of what those costs would have been—
- (i) had the generating station been generating in that period, and
@@ -7893,7 +7893,7 @@
##### 286
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2/2023-07-31) applies for the purposes of determining the amount of allowable costs that may be claimed by a generating undertaking in respect of exceptional revenue sharing costs.
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2/2023-08-01) applies for the purposes of determining the amount of allowable costs that may be claimed by a generating undertaking in respect of exceptional revenue sharing costs.
- (2) Take the following steps to determine the amount (if any) that can be claimed for a qualifying period—
@@ -7905,15 +7905,15 @@
- *Step 4* Add together the results of Step 3. If the result of Step 3 is nil or less the generating undertaking, no amount can be claimed. If the result of Step 3 is more than nil, that amount can be claimed (to the extent it is fairly and reasonably attributable to generation receipts attributed to the undertaking).
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2/2023-07-31), arrangements are “qualifying” if they are arrangements under which fuel for generating electricity is acquired and the requirement to make payments under the arrangements relates to that acquisition.
- (4) Where the arrangements provide for some or all of the cost of paying the levy to be passed to the third party (whether by way of reduction of payments or otherwise) no amount of allowable costs in relation to the arrangements may be claimed unless [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/6/2023-07-31) applies.
- (5) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/6/2023-07-31) applies where the arrangements provide for a fixed proportion of the cost of paying the levy to be passed to the third party.
- (6) Where this subsection applies, the proportion of the amount calculated under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2/2023-07-31) that is equal to the proportion of the costs of paying the levy that are not passed to the third party may be claimed.
- (7) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2023-07-31)—
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2/2023-08-01), arrangements are “qualifying” if they are arrangements under which fuel for generating electricity is acquired and the requirement to make payments under the arrangements relates to that acquisition.
- (4) Where the arrangements provide for some or all of the cost of paying the levy to be passed to the third party (whether by way of reduction of payments or otherwise) no amount of allowable costs in relation to the arrangements may be claimed unless [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/6/2023-08-01) applies.
- (5) [Subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/6/2023-08-01) applies where the arrangements provide for a fixed proportion of the cost of paying the levy to be passed to the third party.
- (6) Where this subsection applies, the proportion of the amount calculated under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2/2023-08-01) that is equal to the proportion of the costs of paying the levy that are not passed to the third party may be claimed.
- (7) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2023-08-01)—
- “*third party*”, in relation to a generating undertaking, means a person that is not a significant equity holder in— where the undertaking is not a group, the undertaking, or where the undertaking is a group, any member of the group;
@@ -7927,7 +7927,7 @@
##### 287
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31), the following form a “group”—
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01), the following form a “group”—
- (a) a company that is not a 75% subsidiary of any other company, and
@@ -7951,7 +7951,7 @@
- (c) at least 75% of B’s ordinary share capital is owned directly or indirectly by A.
- (5) Where as a result of the application of each of [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/a/2023-07-31) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/c/2023-07-31) of [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/2023-07-31) a company would (ignoring this paragraph) be a member of more than one group, that company is to be treated as only being a 75% subsidiary of the first company it is a subsidiary of applying the rules in those paragraphs in order (starting with [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/a/2023-07-31)).
- (5) Where as a result of the application of each of [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/a/2023-08-01) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/c/2023-08-01) of [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/2023-08-01) a company would (ignoring this paragraph) be a member of more than one group, that company is to be treated as only being a 75% subsidiary of the first company it is a subsidiary of applying the rules in those paragraphs in order (starting with [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/a/2023-08-01)).
- (6) If at any time a company that is a generating undertaking becomes a member of a group that is a generating undertaking (including a group that becomes a generating undertaking as a result of that company becoming a member), the final qualifying period of the company ends at that time.
@@ -7961,21 +7961,21 @@
##### 288
- (1) For the purposes of [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2/2023-07-31) (meaning of qualifying period), the reference to an accounting period of a generating undertaking that is a group means an accounting period of its lead member.
- (1) For the purposes of [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2/2023-08-01) (meaning of qualifying period), the reference to an accounting period of a generating undertaking that is a group means an accounting period of its lead member.
- (2) Take the following steps in order to identify the lead member of the group (stopping at the first step under which a member of the group is identified as the lead member)—
- *Step 1* If there is a member of the group that— is within the charge to corporation tax, and is nominated for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2023-07-31), that member is the lead member of the group.
- *Step 1* If there is a member of the group that— is within the charge to corporation tax, and is nominated for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2023-08-01), that member is the lead member of the group.
- *Step 2* If the principal member of the group is within the charge to corporation tax, it is the lead member of the group.
- *Step 3* If— there is a member of the group that— is within the charge to corporation tax, and has no 75% parent within the charge to corporation tax, and there is no other member of the group falling within paragraph (a), that member is the lead member of the group.
- *Step 4* If there is more than one member falling within paragraph (a) of Step 3, the lead member is the member falling within that paragraph to which the greatest amount of generation would be attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31) in the period of 12 months ending with the later of 31 December 2022 and the beginning of the first qualifying period in which the group is a qualifying generating undertaking if— each such member were a generating undertaking, and that period of 12 months were a qualifying period.
- *Step 4* If there is more than one member falling within paragraph (a) of Step 3, the lead member is the member falling within that paragraph to which the greatest amount of generation would be attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01) in the period of 12 months ending with the later of 31 December 2022 and the beginning of the first qualifying period in which the group is a qualifying generating undertaking if— each such member were a generating undertaking, and that period of 12 months were a qualifying period.
- *Step 5* If none of the preceding steps identifies a lead member, the principal member of the group (who will not be within the charge to corporation tax) is the lead member of the group.
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2/2023-07-31), a company (“*P*”) is a 75% parent of another company if that other company is a 75% subsidiary—
- (3) For the purposes of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2/2023-08-01), a company (“*P*”) is a 75% parent of another company if that other company is a 75% subsidiary—
- (a) of P,
@@ -7985,7 +7985,7 @@
- (4) A nomination of a member of a group as the lead member of the group—
- (a) is to be made by the member of the group that, ignoring Step 1 in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2/2023-07-31), would be the lead member of the group (“the nominating member”),
- (a) is to be made by the member of the group that, ignoring Step 1 in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2/2023-08-01), would be the lead member of the group (“the nominating member”),
- (b) must be made by notice to HMRC,
@@ -8001,7 +8001,7 @@
- (5) The revocation of a nomination of a member of a group as the lead member—
- (a) is to be made by the member of the group that, ignoring Step 1 in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2/2023-07-31), would be the lead member of the group,
- (a) is to be made by the member of the group that, ignoring Step 1 in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2/2023-08-01), would be the lead member of the group,
- (b) must be made by notice to HMRC, and
@@ -8027,7 +8027,7 @@
##### 290
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31) applies where—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01) applies where—
- (a) a generating undertaking that is a group is liable to an amount of electricity generator levy for a qualifying period,
@@ -8035,13 +8035,13 @@
- (c) some, or all, of that amount is attributable, on a fair and reasonable basis, to the activities of the relevant member and, if it has one or more relevant subsidiaries, those relevant subsidiaries.
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31) applies, the lead member of the group may elect that so much of the amount as is attributable to the activities of the relevant member and (where it has one or more relevant subsidiaries) its relevant subsidiaries must be paid by that member.
- (2) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01) applies, the lead member of the group may elect that so much of the amount as is attributable to the activities of the relevant member and (where it has one or more relevant subsidiaries) its relevant subsidiaries must be paid by that member.
- (3) But the other members of the group are jointly and severally liable for that amount.
- (4) An election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31) in respect of an amount of electricity generator levy for a qualifying period must be made no later than 9 months after the end of that period.
- (5) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31)—
- (4) An election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01) in respect of an amount of electricity generator levy for a qualifying period must be made no later than 9 months after the end of that period.
- (5) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01)—
- (a) a person (“*P*”) is a significant minority shareholder in a subsidiary member of a group (“*S*”) if P is not a member of the group and—
@@ -8059,7 +8059,7 @@
- (iii) at least 10% of S‘s ordinary share capital is owned by members of the group.
- (6) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31) and [sections 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-07-31) and [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-07-31), a company is a relevant subsidiary of another company if it is a 75% subsidiary of—
- (6) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01) and [sections 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-08-01) and [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-08-01), a company is a relevant subsidiary of another company if it is a 75% subsidiary of—
- (a) that other company,
@@ -8077,17 +8077,17 @@
- (b) in the case of a generating undertaking that is a group, at least one partner who is not a member of the group and at least one partner who is a member of the group.
- (2) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31) of [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31), the qualifying proportion for a qualifying period in relation to a generating undertaking that is a company and a qualifying partnership in relation to that undertaking is the proportion of the partnership’s profits represented by the undertaking’s share of those profits.
- (2) For the purposes of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01) of [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01), the qualifying proportion for a qualifying period in relation to a generating undertaking that is a company and a qualifying partnership in relation to that undertaking is the proportion of the partnership’s profits represented by the undertaking’s share of those profits.
- (3) For the purposes of that subsection, the qualifying proportion for a qualifying period in relation to a generating undertaking that is a group and a qualifying partnership in relation to that undertaking is the proportion of the partnership’s profits represented by the sum of the shares of those profits of each partner that is a member of the undertaking.
- (4) Part 17 of CTA 2009 (partnerships) applies for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/291/2023-07-31) as it applies for the purposes of corporation tax.
- (4) Part 17 of CTA 2009 (partnerships) applies for the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/291/2023-08-01) as it applies for the purposes of corporation tax.
#### Qualifying joint ventures
##### 292
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) a company (“*C*”) is a “qualifying joint venture” if—
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) a company (“*C*”) is a “qualifying joint venture” if—
- (a) C is not a member of a group other than a group of which it is the principal member, and
@@ -8097,7 +8097,7 @@
- (ii) in a case where C does not have ordinary share capital, are beneficially entitled to 75% or more of C's profits available for distribution to equity holders of C.
- (2) In determining whether there are five or fewer such persons as are mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/b/2023-07-31), the members of a group are treated as if they were a single company.
- (2) In determining whether there are five or fewer such persons as are mentioned in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/b/2023-08-01), the members of a group are treated as if they were a single company.
- (3) A company (“*P*”) that is not a member of a group is a participant in a qualifying joint venture (“*V*”) if—
@@ -8111,7 +8111,7 @@
- (b) in a case where V does not have ordinary share capital, a member of the group is, or two or more members between them are, beneficially entitled to 10% or more of V's profits available for distribution to equity holders of V.
- (5) Where a participant in a qualifying joint venture is not a generating undertaking, the participant is to be treated as a generating undertaking for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31).
- (5) Where a participant in a qualifying joint venture is not a generating undertaking, the participant is to be treated as a generating undertaking for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01).
### Attribution and surrender of amounts: joint ventures and significant minority shareholders
@@ -8119,7 +8119,7 @@
##### 293
- (1) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/3/2023-07-31) applies where the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) for a joint venture undertaking is greater than nil for a qualifying period.
- (1) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/3/2023-08-01) applies where the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) for a joint venture undertaking is greater than nil for a qualifying period.
- (2) For the purposes of this Part “*joint venture undertaking*” means a generating undertaking—
@@ -8127,13 +8127,13 @@
- (b) that is a group whose principal member is a qualifying joint venture.
- (3) The appropriate proportion of the non-chargeable amount in relation to the joint venture undertaking is to be added to the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) for each generating undertaking that is a participant in the qualifying joint venture (“the JV”) that comprises, or is the principal member of, the joint venture undertaking (and where Step 4 would not otherwise have been reached as a result of the second sentence of Step 3, ignore that sentence).
- (3) The appropriate proportion of the non-chargeable amount in relation to the joint venture undertaking is to be added to the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) for each generating undertaking that is a participant in the qualifying joint venture (“the JV”) that comprises, or is the principal member of, the joint venture undertaking (and where Step 4 would not otherwise have been reached as a result of the second sentence of Step 3, ignore that sentence).
- (4) Where the qualifying period of the joint venture undertaking corresponds to a qualifying period of a participant of the JV, the whole of the appropriate proportion of the non-chargeable amount is to be added to the result of Step 4 for the participant for that period.
Otherwise, the appropriate proportion is to be apportioned, on a fair and reasonable basis, between the qualifying periods of the participant in which the qualifying period of the joint venture undertaking falls.
- (5) The non-chargeable amount for a qualifying period of the joint venture undertaking is so much of the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) for that period as is reduced as a result of Step 5 of that section.
- (5) The non-chargeable amount for a qualifying period of the joint venture undertaking is so much of the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) for that period as is reduced as a result of Step 5 of that section.
- (6) To determine the appropriate proportion of the participants in the JV for a qualifying period of the joint venture undertaking take the following steps—
@@ -8141,7 +8141,7 @@
- *Step 2* In respect of each participant, subtract those allocated allowable costs from those allocated generation receipts. If the result of this Step is less than nil for any of the participants, the appropriate proportion for that participant is nil.
- *Step 3* The appropriate proportion for any other participant is the amount given by dividing— the result of Step 2 in respect of that participant, by the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) for the joint venture undertaking— ignoring any amounts added to the result of that Step in accordance with [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/3/2023-07-31), and where the result of Step 2 for one or more of the participants is less than nil, increased by the sum of those results (each expressed as a positive number).
- *Step 3* The appropriate proportion for any other participant is the amount given by dividing— the result of Step 2 in respect of that participant, by the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) for the joint venture undertaking— ignoring any amounts added to the result of that Step in accordance with [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/3/2023-08-01), and where the result of Step 2 for one or more of the participants is less than nil, increased by the sum of those results (each expressed as a positive number).
- (7) The proportional interest of a participant (“*P*”) in the JV at any time is—
@@ -8157,39 +8157,39 @@
- (ii) where P is a generating undertaking which is a group, to which members of P are beneficially entitled.
- (8) Where the appropriate proportion of the non-chargeable amount is required to be added to the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) for a generating undertaking that is not “*qualifying*” (see [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/3/2023-07-31)) in the qualifying period in which it is to be added, that undertaking is to be treated as qualifying for that period.
- (8) Where the appropriate proportion of the non-chargeable amount is required to be added to the result of Step 4 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) for a generating undertaking that is not “*qualifying*” (see [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/3/2023-08-01)) in the qualifying period in which it is to be added, that undertaking is to be treated as qualifying for that period.
#### Generation acquired and supplied by JV participants
##### 294
- (1) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/2023-07-31) applies to generation if —
- (a) the generation is attributed to a joint venture undertaking, other than in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31) or [sections 295](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2023-07-31) to [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-07-31),
- (1) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/2023-08-01) applies to generation if —
- (a) the generation is attributed to a joint venture undertaking, other than in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01) or [sections 295](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2023-08-01) to [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-08-01),
- (b) it is supplied, directly or indirectly, to a generating undertaking (“*Q*”) that is a participant in the joint venture (“the JV”) that comprises, or is the principal member of, the joint venture undertaking, and
- (c) it is subsequently the subject of a wholesale purchase of electricity from Q.
- (2) Where the generation attributed to the joint venture undertaking is generation falling within [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/b/2023-07-31) (generation expected to be generated which was not generated), reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/1/2023-07-31) to supply or purchase is to any supply or purchase that was expected in consequence of that generation having occurred.
- (3) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/2023-07-31) applies to generation—
- (2) Where the generation attributed to the joint venture undertaking is generation falling within [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/b/2023-08-01) (generation expected to be generated which was not generated), reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/1/2023-08-01) to supply or purchase is to any supply or purchase that was expected in consequence of that generation having occurred.
- (3) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/2023-08-01) applies to generation—
- (a) the generation is to be attributed to Q (as well as to the joint venture undertaking),
- (b) in determining the amount of generation receipts to be attributed to the joint venture undertaking under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-07-31) in respect of that generation, do not take account of the transaction described in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/1/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/1/c/2023-07-31),
- (c) the generation attributed to Q as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-07-31) is to be attributed to Q for the qualifying period of Q in which the generation occurred,
- (d) subject to [paragraph (f)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/f/2023-07-31), the generation attributed to Q as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-07-31) is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) as if it had been attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31),
- (e) in determining the amount of generation receipts to be attributed to Q under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-07-31) in respect of generation attributed as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-07-31), take account of the costs of the transaction under which the generation so attributed was acquired or was expected to be acquired, and
- (f) in determining the exceptional generation receipts of Q for a qualifying period of Q under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31), any generation attributed to Q for that period as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-07-31) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
- (b) in determining the amount of generation receipts to be attributed to the joint venture undertaking under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-08-01) in respect of that generation, do not take account of the transaction described in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/1/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/1/c/2023-08-01),
- (c) the generation attributed to Q as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-08-01) is to be attributed to Q for the qualifying period of Q in which the generation occurred,
- (d) subject to [paragraph (f)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/f/2023-08-01), the generation attributed to Q as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-08-01) is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) as if it had been attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01),
- (e) in determining the amount of generation receipts to be attributed to Q under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-08-01) in respect of generation attributed as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-08-01), take account of the costs of the transaction under which the generation so attributed was acquired or was expected to be acquired, and
- (f) in determining the exceptional generation receipts of Q for a qualifying period of Q under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01), any generation attributed to Q for that period as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-08-01) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
- (4) But the amount generation that is to be attributed to Q in a qualifying period of Q under this section is not to exceed the amount of generation attributed to the joint venture undertaking in respect of that same period multiplied by the relevant proportion.
- (5) The “*relevant proportion*” for the purposes of [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/4/2023-07-31) and [section 295](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/3/2023-07-31) is—
- (5) The “*relevant proportion*” for the purposes of [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/4/2023-08-01) and [section 295](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/3/2023-08-01) is—
- (a) the percentage of the JV’s ordinary share capital held—
@@ -8207,9 +8207,9 @@
##### 295
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/2023-07-31) applies to generation if—
- (a) the generation is attributed to a joint venture undertaking, other than in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31) or [sections 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31), [296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-07-31) or [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-07-31),
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/2023-08-01) applies to generation if—
- (a) the generation is attributed to a joint venture undertaking, other than in accordance with [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01) or [sections 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01), [296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-08-01) or [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-08-01),
- (b) a participant (“*Q*”) in the joint venture (“the JV”) that comprises, or is the principal member of, the joint venture undertaking is party to arrangements that result in amounts arising by reference to the generation,
@@ -8219,63 +8219,63 @@
- (i) is not supplied (directly or indirectly) to Q, or
- (ii) in the case of generation falling within [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/b/2023-07-31) (generation expected to be generated which was not generated), was not expected to be supplied (directly or indirectly) to Q.
- (2) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/2023-07-31) applies to generation—
- (ii) in the case of generation falling within [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/b/2023-08-01) (generation expected to be generated which was not generated), was not expected to be supplied (directly or indirectly) to Q.
- (2) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/2023-08-01) applies to generation—
- (a) the generation is to be attributed to Q (as well as to the joint venture undertaking),
- (b) the generation attributed to Q as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/a/2023-07-31) is to be attributed to Q for the qualifying period of Q in which the generation occurred,
- (c) subject to [paragraph (d)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/d/2023-07-31), the generation attributed to Q as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/a/2023-07-31) is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) as if it had been attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31),
- (d) in determining the exceptional generation receipts of Q for a qualifying period of Q under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31)—
- (e) any generation attributed to Q for that period as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-07-31) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
- (3) But amount of generation that is to be attributed to Q in a qualifying period of Q under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2023-07-31) is not to exceed the amount given by subtracting—
- (a) the amount of generation attributed to Q in that period under [section 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31), from
- (b) the amount of generation attributed to the joint venture undertaking in respect of that same period multiplied by the relevant proportion (see [section 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/5/2023-07-31)).
- (b) the generation attributed to Q as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/a/2023-08-01) is to be attributed to Q for the qualifying period of Q in which the generation occurred,
- (c) subject to [paragraph (d)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/d/2023-08-01), the generation attributed to Q as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2/a/2023-08-01) is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) as if it had been attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01),
- (d) in determining the exceptional generation receipts of Q for a qualifying period of Q under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01)—
- (e) any generation attributed to Q for that period as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/3/a/2023-08-01) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
- (3) But amount of generation that is to be attributed to Q in a qualifying period of Q under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/295/2023-08-01) is not to exceed the amount given by subtracting—
- (a) the amount of generation attributed to Q in that period under [section 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01), from
- (b) the amount of generation attributed to the joint venture undertaking in respect of that same period multiplied by the relevant proportion (see [section 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/5/2023-08-01)).
#### Generation acquired and supplied by significant minority shareholders
##### 296
- (1) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/2023-07-31) applies to generation if—
- (1) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/2023-08-01) applies to generation if—
- (a) a subsidiary member (“*A*”) of a generating undertaking that is a group (“*U*”) has a significant minority shareholder that is a company or group,
- (b) the generation is generation by a relevant generating station operated by A or a relevant subsidiary of A (see [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/6/2023-07-31)),
- (b) the generation is generation by a relevant generating station operated by A or a relevant subsidiary of A (see [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/6/2023-08-01)),
- (c) the generation is supplied, directly or indirectly, to a significant minority shareholder (“*M*”) in A that is a company or a group, and
- (d) the generation is subsequently the subject of a wholesale purchase of electricity from M.
- (2) Where the generation falls within [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/b/2023-07-31) (generation expected to be generated which was not generated), reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/1/2023-07-31) to supply or purchase is to any supply or purchase that was expected in consequence of that generation having occurred.
- (3) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/2023-07-31) applies to generation—
- (2) Where the generation falls within [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/b/2023-08-01) (generation expected to be generated which was not generated), reference in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/1/2023-08-01) to supply or purchase is to any supply or purchase that was expected in consequence of that generation having occurred.
- (3) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/2023-08-01) applies to generation—
- (a) the generation is to be attributed to M (as well as to U),
- (b) in determining the amount of generation receipts to be attributed to U under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-07-31) in respect of the generation, do not take account of the transaction described in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/1/2023-07-31)[(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/1/d/2023-07-31),
- (c) the generation attributed to M as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-07-31) is to be attributed to M for the qualifying period of M in which the generation occurred,
- (d) subject to [paragraph (f)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/f/2023-07-31), the generation attributed to M as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-07-31) is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) as if it had been attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31),
- (e) in determining the amount of generation receipts to be attributed to M under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-07-31) in respect of generation attributed as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-07-31), take account of the costs of the transaction under which the generation so attributed was acquired or was expected to be acquired, and
- (f) in determining the exceptional generation receipts of M for a qualifying period of M under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31), any generation attributed to M for that period as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-07-31) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
- (4) Where the generation is generation by a relevant generating station operated in partnership and at least one of the partners is neither A nor a relevant subsidiary of A, only the qualifying proportion of that generation is to be attributed to M under [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-07-31).
- (5) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-07-31) and [section 297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-07-31), “the qualifying proportion” is the proportion of generation that is equal to the proportion of the partnership’s profits represented by the sum of A’s share of the partnership’s profits and the shares of those profits of any relevant subsidiaries of A (and Part 17 of CTA 2009 applies for the purposes of [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/296/5/2023-07-31) as it applies for the purposes of corporation tax).
- (b) in determining the amount of generation receipts to be attributed to U under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-08-01) in respect of the generation, do not take account of the transaction described in [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/1/2023-08-01)[(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/1/d/2023-08-01),
- (c) the generation attributed to M as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-08-01) is to be attributed to M for the qualifying period of M in which the generation occurred,
- (d) subject to [paragraph (f)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/f/2023-08-01), the generation attributed to M as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-08-01) is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) as if it had been attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01),
- (e) in determining the amount of generation receipts to be attributed to M under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-08-01) in respect of generation attributed as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-08-01), take account of the costs of the transaction under which the generation so attributed was acquired or was expected to be acquired, and
- (f) in determining the exceptional generation receipts of M for a qualifying period of M under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01), any generation attributed to M for that period as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-08-01) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
- (4) Where the generation is generation by a relevant generating station operated in partnership and at least one of the partners is neither A nor a relevant subsidiary of A, only the qualifying proportion of that generation is to be attributed to M under [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/3/a/2023-08-01).
- (5) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-08-01) and [section 297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-08-01), “the qualifying proportion” is the proportion of generation that is equal to the proportion of the partnership’s profits represented by the sum of A’s share of the partnership’s profits and the shares of those profits of any relevant subsidiaries of A (and Part 17 of CTA 2009 applies for the purposes of [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/296/5/2023-08-01) as it applies for the purposes of corporation tax).
- (6) But the generation that is to be attributed to M in a qualifying period of M is not to exceed the amount of generation that is attributable on a fair and reasonable basis to the activities of A and (where it has one or more relevant subsidiaries) its relevant subsidiaries in that same period multiplied by the relevant proportion.
- (7) The “*relevant proportion*” for the purposes of [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/6/2023-07-31) and [section 297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/4/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/4/b/2023-07-31) is—
- (7) The “*relevant proportion*” for the purposes of [subsection (6)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/6/2023-08-01) and [section 297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/4/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/4/b/2023-08-01) is—
- (a) the percentage of A’s ordinary share capital held—
@@ -8289,17 +8289,17 @@
- (ii) where M is a generating undertaking which is a group, to which members of M are beneficially entitled.
- (8) Where M is not a generating undertaking, M is to be treated as a generating undertaking for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31).
- (8) Where M is not a generating undertaking, M is to be treated as a generating undertaking for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01).
#### Arrangements that reflect receipts (significant minority shareholders)
##### 297
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/2023-07-31) applies to generation if—
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/2023-08-01) applies to generation if—
- (a) a subsidiary member (“*A*”) of a generating undertaking that is a group (“*U*”) has a significant minority shareholder that is a company or group,
- (b) the generation is generation by a relevant generating station operated by A or a relevant subsidiary of A (see [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/6/2023-07-31)),
- (b) the generation is generation by a relevant generating station operated by A or a relevant subsidiary of A (see [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/6/2023-08-01)),
- (c) a significant minority shareholder (“*M*”) in A that is a company or a group is party to arrangements that result in amounts arising by reference to the generation,
@@ -8309,45 +8309,45 @@
- (i) is not supplied (directly or indirectly) to M, or
- (ii) in the case of generation falling within [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/b/2023-07-31) (generation expected to be generated which was not generated), was not expected to be supplied (directly or indirectly) to M.
- (2) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/2023-07-31) applies to generation—
- (ii) in the case of generation falling within [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/b/2023-08-01) (generation expected to be generated which was not generated), was not expected to be supplied (directly or indirectly) to M.
- (2) Where [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/2023-08-01) applies to generation—
- (a) the generation is to be attributed to M (as well as to U),
- (b) the generation attributed to M as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/a/2023-07-31) is to be attributed to M for the qualifying period of M in which the generation occurred,
- (c) subject to [paragraph (d)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/d/2023-07-31), the generation attributed to M as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/a/2023-07-31) is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) as if it had been attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-07-31),
- (d) in determining the exceptional generation receipts of M for a qualifying period of M under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31), any generation attributed to M for that period as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/a/2023-07-31) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
- (3) Where the generation is generation by a relevant generating station operated in partnership and at least one of the partners is neither A nor a relevant subsidiary of A, only the qualifying proportion of that generation (see [section 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/4/2023-07-31)) is to be attributed to M under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/a/2023-07-31).
- (b) the generation attributed to M as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/a/2023-08-01) is to be attributed to M for the qualifying period of M in which the generation occurred,
- (c) subject to [paragraph (d)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/d/2023-08-01), the generation attributed to M as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/a/2023-08-01) is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) as if it had been attributed under [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/1/2023-08-01),
- (d) in determining the exceptional generation receipts of M for a qualifying period of M under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01), any generation attributed to M for that period as a result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/a/2023-08-01) is to be ignored for the purposes of Step 2 (which may result in the result of that Step being nil).
- (3) Where the generation is generation by a relevant generating station operated in partnership and at least one of the partners is neither A nor a relevant subsidiary of A, only the qualifying proportion of that generation (see [section 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/4/2023-08-01)) is to be attributed to M under [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2/a/2023-08-01).
- (4) But the amount of generation that is to be attributed to M in a qualifying period of M is not to exceed the amount given by subtracting—
- (a) the amount of generation attributed to M in that period under [section 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-07-31), from
- (b) the amount of generation that is attributable on a fair and reasonable basis to the activities of A and (where it has one or more relevant subsidiaries) its relevant subsidiaries multiplied by the relevant proportion (see [section 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/7/2023-07-31)).
- (5) Where M is not a generating undertaking, M is to be treated as a generating undertaking for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31).
- (a) the amount of generation attributed to M in that period under [section 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-08-01), from
- (b) the amount of generation that is attributable on a fair and reasonable basis to the activities of A and (where it has one or more relevant subsidiaries) its relevant subsidiaries multiplied by the relevant proportion (see [section 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/7/2023-08-01)).
- (5) Where M is not a generating undertaking, M is to be treated as a generating undertaking for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01).
#### Surrender of shortfalls
##### 298
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/298/2023-07-31) applies where in an overlap period for two related generating undertakings—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/298/2023-08-01) applies where in an overlap period for two related generating undertakings—
- (a) one of those undertakings (“*A*”) has a shortfall amount for the overlap period, and
- (b) the other undertaking (“*B*”) has exceptional generation receipts for the overlap period.
- (2) To determine if an undertaking has a shortfall amount or exceptional generation receipts for an overlap period, carry out all of the steps in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) as if the period were a qualifying period, including steps that would normally be ignored because a result of nil or less has already been found.
- (2) To determine if an undertaking has a shortfall amount or exceptional generation receipts for an overlap period, carry out all of the steps in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) as if the period were a qualifying period, including steps that would normally be ignored because a result of nil or less has already been found.
- (3) If the result of Step 5 is less than nil, that result (expressed as a positive number) is a shortfall amount.
- (4) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/298/2023-07-31) applies, an amount of the shortfall amount of A may be surrendered to B.
- (5) [Section 299](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2023-07-31) sets out how much of the shortfall amount may be surrendered by A to B.
- (4) Where [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/298/2023-08-01) applies, an amount of the shortfall amount of A may be surrendered to B.
- (5) [Section 299](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2023-08-01) sets out how much of the shortfall amount may be surrendered by A to B.
- (6) Two generating undertakings are related generating undertakings if—
@@ -8365,7 +8365,7 @@
- (b) where D is a generating undertaking that is a group that has at least one subsidiary member who has at least one significant minority shareholder, C is a significant minority shareholder in a subsidiary member of D.
- (8) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/298/2023-07-31) “*overlap period*” in relation to two generating undertakings means—
- (8) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/298/2023-08-01) “*overlap period*” in relation to two generating undertakings means—
- (a) where a qualifying period of one of the generating undertakings wholly corresponds with a qualifying period of the other, such a period, and
@@ -8379,33 +8379,33 @@
##### 299
- (1) Subject to [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/7/2023-07-31), the maximum amount of a shortfall amount that may be surrendered by a generating undertaking (“*A*”) to another (“*B*”) where A is a relevant shareholder in B, is the lesser of the amounts given by [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2/2023-07-31) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/3/2023-07-31).
- (2) The amount given by [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2/2023-07-31) is the amount of the shortfall amount of A that is, on a fair and reasonable basis, referable to A’s interest in the generation attributed to B in the overlap period.
- (3) The amount given by [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/299/3/2023-07-31) is the amount of the exceptional generation receipts of B for the shortfall period that is, on a fair and reasonable basis, referable to A’s interest in the generation attributed to B in the overlap period.
- (4) Subject to [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/7/2023-07-31), the maximum amount of a shortfall amount that may be surrendered by a generating undertaking (“*C*”) to another (“*D*”) where D is a relevant shareholder in C is the lesser of the amounts given by [subsections (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/5/2023-07-31) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/6/2023-07-31).
- (5) The amount given by [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/299/5/2023-07-31) is the amount of the shortfall amount of C that is, on a fair and reasonable basis, referable to D’s interest in the generation attributed to C in the overlap period.
- (6) The amount given by [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/299/6/2023-07-31) is the amount of the exceptional generation receipts of D for the shortfall period that is, on a fair and reasonable basis, referable to D’s interest in the generation attributed to C in the overlap period.
- (7) A generating undertaking may only surrender an amount of a shortfall amount relating to an overlap period if the result of Step 5 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) for the undertaking for the qualifying period in which the overlap period falls would not exceed nil if—
- (a) all of the steps in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) for that qualifying period were carried out, including steps that would normally be ignored because a result of nil or less has already been found,
- (1) Subject to [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/7/2023-08-01), the maximum amount of a shortfall amount that may be surrendered by a generating undertaking (“*A*”) to another (“*B*”) where A is a relevant shareholder in B, is the lesser of the amounts given by [subsections (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2/2023-08-01) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/3/2023-08-01).
- (2) The amount given by [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2/2023-08-01) is the amount of the shortfall amount of A that is, on a fair and reasonable basis, referable to A’s interest in the generation attributed to B in the overlap period.
- (3) The amount given by [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/299/3/2023-08-01) is the amount of the exceptional generation receipts of B for the shortfall period that is, on a fair and reasonable basis, referable to A’s interest in the generation attributed to B in the overlap period.
- (4) Subject to [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/7/2023-08-01), the maximum amount of a shortfall amount that may be surrendered by a generating undertaking (“*C*”) to another (“*D*”) where D is a relevant shareholder in C is the lesser of the amounts given by [subsections (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/5/2023-08-01) and [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/6/2023-08-01).
- (5) The amount given by [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/299/5/2023-08-01) is the amount of the shortfall amount of C that is, on a fair and reasonable basis, referable to D’s interest in the generation attributed to C in the overlap period.
- (6) The amount given by [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/299/6/2023-08-01) is the amount of the exceptional generation receipts of D for the shortfall period that is, on a fair and reasonable basis, referable to D’s interest in the generation attributed to C in the overlap period.
- (7) A generating undertaking may only surrender an amount of a shortfall amount relating to an overlap period if the result of Step 5 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) for the undertaking for the qualifying period in which the overlap period falls would not exceed nil if—
- (a) all of the steps in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) for that qualifying period were carried out, including steps that would normally be ignored because a result of nil or less has already been found,
- (b) the amount surrendered were added to the result of Step 5, and
- (c) all other amounts surrendered for overlap periods falling with that period were added to the result of that Step.
- (8) Where an amount of a shortfall amount has been surrendered to a generating undertaking, that amount is to reduce the result of Step 5 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31), but not below nil, for the qualifying period in which the overlap period to which the shortfall amount relates falls.
- (8) Where an amount of a shortfall amount has been surrendered to a generating undertaking, that amount is to reduce the result of Step 5 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01), but not below nil, for the qualifying period in which the overlap period to which the shortfall amount relates falls.
- (9) A surrender of an amount of a shortfall amount is effective only if—
- (a) the generating undertaking which is surrendering the amount has consented to surrender that amount to the other generating undertaking, and
- (b) the other generating undertaking has made a claim to that amount (see [section 305](https://www.legislation.gov.uk/ukpga/2023/30/section/305/2023-07-31)).
- (b) the other generating undertaking has made a claim to that amount (see [section 305](https://www.legislation.gov.uk/ukpga/2023/30/section/305/2023-08-01)).
### Treatment of company as transparent as alternative to attribution and surrender
@@ -8415,9 +8415,9 @@
- (1) A company that is, or is a member of, a generating undertaking may elect that the company is to be treated as transparent while the election is in force.
[Section 301](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31) sets out the effect of a company being “treated as transparent”.
- (2) An election under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/1/2023-07-31)—
[Section 301](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01) sets out the effect of a company being “treated as transparent”.
- (2) An election under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/1/2023-08-01)—
- (a) must be made by notice to HMRC;
@@ -8445,7 +8445,7 @@
- (5) Where two or more members of a group are shareholders of the company, they are to be regarded as a single shareholder (and their interests aggregated) for the purposes of determining whether subsection (4)(a) is met (but each must still consent to the making of the election for condition B to be satisfied).
- (6) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2023-07-31) and [section 301](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31)—
- (6) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2023-08-01) and [section 301](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01)—
- (a) a person is a shareholder of a company if—
@@ -8459,7 +8459,7 @@
- (ii) in the case of a company that does not have ordinary share capital, the proportion of the company’s profits available for distribution to equity holders of it to which the shareholder is beneficially entitled.
- (7) An election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2023-07-31) has effect from the date specified in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2/b/2023-07-31) until—
- (7) An election under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2023-08-01) has effect from the date specified in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2/b/2023-08-01) until—
- (a) revoked by the company,
@@ -8467,13 +8467,13 @@
- (c) a person who was not a shareholder of the company at the time the election first took effect becomes a shareholder of the company.
Nothing in [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/300/7/2023-07-31) is to be read as preventing a subsequent election being made that commences at any time after the first election ceased to have effect.
Nothing in [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/300/7/2023-08-01) is to be read as preventing a subsequent election being made that commences at any time after the first election ceased to have effect.
- (8) An election may be revoked by the company by notice given to HMRC that specifies the date the election is to cease to have effect, which must be no earlier than 12 months before the day on which the notice of revocation is given.
- (9) An election may be revoked by HMRC by notice given to the company if HMRC considers that the company or its shareholders have not complied with any obligation under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31).
- (10) A notice under [subsection (9)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/9/2023-07-31)—
- (9) An election may be revoked by HMRC by notice given to the company if HMRC considers that the company or its shareholders have not complied with any obligation under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01).
- (10) A notice under [subsection (9)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/9/2023-08-01)—
- (a) must specify the date from which the revocation has effect (including a date which if specified would result in the election never having effect), and
@@ -8481,27 +8481,27 @@
- (c) may be appealed by the company by notice to HMRC.
- (11) An appeal under [subsection (10)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/10/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/10/c/2023-07-31) must be made during the period of 30 days beginning with the date on which the notice under [subsection (9)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/9/2023-07-31) was given.
Further provision about appeals is contained in Part 5 of TMA 1970 (which applies in relation to the electricity generator levy as a result of [section 302](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2023-07-31)).
- (11) An appeal under [subsection (10)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/10/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/10/c/2023-08-01) must be made during the period of 30 days beginning with the date on which the notice under [subsection (9)](https://www.legislation.gov.uk/ukpga/2023/30/section/300/9/2023-08-01) was given.
Further provision about appeals is contained in Part 5 of TMA 1970 (which applies in relation to the electricity generator levy as a result of [section 302](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2023-08-01)).
#### Effect of company being transparent
##### 301
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31) applies where a company (“*C*”) is treated as transparent as a result of an election under [section 300](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2023-07-31).
- (2) C is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) as if it were a partnership.
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01) applies where a company (“*C*”) is treated as transparent as a result of an election under [section 300](https://www.legislation.gov.uk/ukpga/2023/30/section/300/2023-08-01).
- (2) C is to be treated for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) as if it were a partnership.
- (3) Its shareholders are to be regarded for those purposes as its partners.
- (4) Each shareholder’s share of the profits of the partnership is equal to its interest in C.
- (5) Where C is a generating undertaking, all generation, generation receipts and allowable costs that would (ignoring [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31)) be attributed to C in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) are to be treated instead as if they resulted from the operation of a generating station operated in partnership by C’s partners.
- (5) Where C is a generating undertaking, all generation, generation receipts and allowable costs that would (ignoring [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01)) be attributed to C in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) are to be treated instead as if they resulted from the operation of a generating station operated in partnership by C’s partners.
- (6) Where C is a member of a group that is a generating undertaking, the generation, generation receipts and allowable costs that—
- (a) would (ignoring [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31)) be attributed to the group in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31), and
- (a) would (ignoring [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01)) be attributed to the group in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01), and
- (b) are attributable on a fair and reasonable basis to the activities of C,
@@ -8509,7 +8509,7 @@
- (7) Where C is, or is treated as, the only shareholder in another company (“*D*”), the generation, generation receipts and allowable costs that—
- (a) would (ignoring [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31)) be attributed, in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31), to the group of which D is a member, and
- (a) would (ignoring [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01)) be attributed, in accordance with [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01), to the group of which D is a member, and
- (b) are attributable on a fair and reasonable basis to the activities of D,
@@ -8527,19 +8527,19 @@
- (i) C;
- (ii) a company whose only shareholder falls within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/a/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/a/i/2023-07-31) or [(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/a/ii/2023-07-31);
- (iii) a company that has more than one shareholder each of which is a company falling with [sub-paragraph (i)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/b/i/2023-07-31) or [(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/b/ii/2023-07-31) or this sub-paragraph.
- (9) Where a shareholder of a company, or a generating undertaking of which such a shareholder is a member, is liable to an amount of electricity generator levy as a result of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31)—
- (a) where the company is a generating undertaking, it is jointly and severally liable to that amount (to the extent it arises as a result of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31)), or
- (b) where the company is a member of a generating undertaking that is a group, that undertaking is jointly and severally liable to that amount (to the extent it arises as a result of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-07-31)).
- (ii) a company whose only shareholder falls within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/a/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/a/i/2023-08-01) or [(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/a/ii/2023-08-01);
- (iii) a company that has more than one shareholder each of which is a company falling with [sub-paragraph (i)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/b/i/2023-08-01) or [(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/8/b/ii/2023-08-01) or this sub-paragraph.
- (9) Where a shareholder of a company, or a generating undertaking of which such a shareholder is a member, is liable to an amount of electricity generator levy as a result of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01)—
- (a) where the company is a generating undertaking, it is jointly and severally liable to that amount (to the extent it arises as a result of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01)), or
- (b) where the company is a member of a generating undertaking that is a group, that undertaking is jointly and severally liable to that amount (to the extent it arises as a result of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/301/2023-08-01)).
- (10) Where—
- (a) a generating undertaking is liable to an amount of electricity generator levy as a result of [subsection (9)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/9/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/9/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/9/b/2023-07-31), and
- (a) a generating undertaking is liable to an amount of electricity generator levy as a result of [subsection (9)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/9/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/9/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/301/9/b/2023-08-01), and
- (b) the qualifying period (“the chargeable period”) by reference to which that amount was determined does not wholly correspond to a qualifying period of the undertaking,
@@ -8555,7 +8555,7 @@
- (2) For the purposes of the collection and management of the electricity generator levy, any provision made by or under an enactment that applies in relation to corporation tax is to apply in relation to the electricity generator levy.
- (3) The following are examples of provision that, as a result of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2/2023-07-31), apply in relation to the electricity generator levy—
- (3) The following are examples of provision that, as a result of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2/2023-08-01), apply in relation to the electricity generator levy—
- (a) provision relating to returns of information and the supply of accounts, statements and reports;
@@ -8578,59 +8578,59 @@
- (ii) at the end there were inserted
> and,
> - [section 302](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/1/2023-07-31) of the Finance (No. 2) Act 2023.
- (5) [Subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/1/2023-07-31) to [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/4/2023-07-31) are subject to—
- (a) any other provision made by or under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31), and
> - [section 302](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/1/2023-08-01) of the Finance (No. 2) Act 2023.
- (5) [Subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/1/2023-08-01) to [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/4/2023-08-01) are subject to—
- (a) any other provision made by or under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01), and
- (b) any necessary modifications.
- (6) The Treasury may by regulations make the following provision—
- (a) provision that disapplies any provision so far as it would otherwise, as a result of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2/2023-07-31), apply in relation to the electricity generator levy;
- (a) provision that disapplies any provision so far as it would otherwise, as a result of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2/2023-08-01), apply in relation to the electricity generator levy;
- (b) provision modifying the application of any such provision in relation to the electricity generator levy;
- (c) provision about (including provision modifying) the application of any provision of the Tax Acts (that would not otherwise apply to the electricity generator levy as a result of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2/2023-07-31)) in relation to the levy.
- (c) provision about (including provision modifying) the application of any provision of the Tax Acts (that would not otherwise apply to the electricity generator levy as a result of [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2/2023-08-01)) in relation to the levy.
#### Company tax returns
##### 303
- (1) Where a generating undertaking that is a company is a qualifying generating undertaking for a qualifying period, it must include a statement of the matters mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/4/2023-07-31) in its company tax return for the first accounting period that ends on or after the day on which the qualifying period ends (and if it would not otherwise be required to make a company tax return for that period, it must make one).
- (2) Where a generating undertaking that is a group is a qualifying generating undertaking for a qualifying period, the lead member in that period must include a statement of the matters mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/4/2023-07-31) in its company tax return for the first accounting period that ends on or after the day on which the qualifying period ends (and if it would not otherwise be required to make a company tax return for that accounting period it must make one).
- (3) But [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/1/2023-07-31) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/2/2023-07-31) do not apply in relation to a qualifying generating undertaking for a qualifying period if it is reasonable to assume that the result of Step 5 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-07-31) for that period would be significantly less than nil.
- (1) Where a generating undertaking that is a company is a qualifying generating undertaking for a qualifying period, it must include a statement of the matters mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/4/2023-08-01) in its company tax return for the first accounting period that ends on or after the day on which the qualifying period ends (and if it would not otherwise be required to make a company tax return for that period, it must make one).
- (2) Where a generating undertaking that is a group is a qualifying generating undertaking for a qualifying period, the lead member in that period must include a statement of the matters mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/4/2023-08-01) in its company tax return for the first accounting period that ends on or after the day on which the qualifying period ends (and if it would not otherwise be required to make a company tax return for that accounting period it must make one).
- (3) But [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/1/2023-08-01) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/2/2023-08-01) do not apply in relation to a qualifying generating undertaking for a qualifying period if it is reasonable to assume that the result of Step 5 in [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/5/2023-08-01) for that period would be significantly less than nil.
- (4) The matters that must be stated are as follows—
- (a) the amount of generation attributed to the generating undertaking for the qualifying period under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31),
- (b) the amount of generation receipts attributed to that undertaking for that period under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-07-31),
- (c) the amount of any allowable costs attributed to that undertaking for that period under [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-07-31),
- (a) the amount of generation attributed to the generating undertaking for the qualifying period under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01),
- (b) the amount of generation receipts attributed to that undertaking for that period under [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-08-01),
- (c) the amount of any allowable costs attributed to that undertaking for that period under [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-08-01),
- (d) the amount of the undertaking’s revenue allowance for that period,
- (e) in the case of a generating undertaking that is a group, any amount of electricity generator levy that a member of that group must pay as a result of an election under [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31).
- (5) Where the lead member of a generating undertaking that is a group fails to comply with the obligation in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/2/2023-07-31) in relation to a qualifying period, an officer of Revenue and Customs may by notice require another member of the group to make or amend a company tax return that includes the matters mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/4/2023-07-31).
- (6) Nothing in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/303/2023-07-31) is to be taken to limit the things which must be included in a company tax return as a result of [section 302](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/4/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/4/b/2023-07-31) (which has the effect of treating the electricity generator levy as tax for the purposes of company tax returns).
- (e) in the case of a generating undertaking that is a group, any amount of electricity generator levy that a member of that group must pay as a result of an election under [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01).
- (5) Where the lead member of a generating undertaking that is a group fails to comply with the obligation in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/2/2023-08-01) in relation to a qualifying period, an officer of Revenue and Customs may by notice require another member of the group to make or amend a company tax return that includes the matters mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/4/2023-08-01).
- (6) Nothing in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/303/2023-08-01) is to be taken to limit the things which must be included in a company tax return as a result of [section 302](https://www.legislation.gov.uk/ukpga/2023/30/section/302/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/4/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/302/4/b/2023-08-01) (which has the effect of treating the electricity generator levy as tax for the purposes of company tax returns).
- (7) Schedule 18 to FA 1998 (company tax returns etc.) applies in relation to a company required to make, or amend, a company tax return as a result of this section as if, in paragraph 8(1) of that Schedule (calculation of tax payable), at the end there were inserted—
> - *Sixth step* Add any amount of electricity generator levy the company is liable to in respect of that accounting period under Part [5](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) of the Finance (No. 2) Act 2023.
- (8) For the purposes of that modification, a company is liable to an amount of electricity generator levy in respect of an accounting period if the company tax return for that period must, as a result of this section, include a statement of the matters mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/4/2023-07-31) in relation to the qualifying period to which that amount relates.
> - *Sixth step* Add any amount of electricity generator levy the company is liable to in respect of that accounting period under Part [5](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) of the Finance (No. 2) Act 2023.
- (8) For the purposes of that modification, a company is liable to an amount of electricity generator levy in respect of an accounting period if the company tax return for that period must, as a result of this section, include a statement of the matters mentioned in [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/303/4/2023-08-01) in relation to the qualifying period to which that amount relates.
#### Requirement to provide information about payments
##### 304
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/304/2023-07-31) applies if—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/304/2023-08-01) applies if—
- (a) an amount of electricity generator levy is chargeable on a company as if it were an amount of corporation tax, and
@@ -8644,15 +8644,15 @@
- (b) in the case of an amount of electricity generator levy to which a generating undertaking that is a group is liable, the lead member of that group.
- (4) The requirement in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/304/2/2023-07-31) is to be treated, for the purposes of Part 7 of Schedule 36 to FA 2008 (information and inspection powers: penalties), as a requirement in an information notice.
- (5) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/304/2023-07-31) is subject to any provision to the contrary in regulations under section 59E of TMA 1970 (further provision as to when corporation tax is due and payable).
- (4) The requirement in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/304/2/2023-08-01) is to be treated, for the purposes of Part 7 of Schedule 36 to FA 2008 (information and inspection powers: penalties), as a requirement in an information notice.
- (5) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/304/2023-08-01) is subject to any provision to the contrary in regulations under section 59E of TMA 1970 (further provision as to when corporation tax is due and payable).
#### Claims to shortfall amounts
##### 305
- (1) Part 8 of Schedule 18 to FA 1998 applies to a claim to a shortfall amount under [section 299](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2023-07-31) as it applies to a claim for group relief under Part 5 of CTA 2010.
- (1) Part 8 of Schedule 18 to FA 1998 applies to a claim to a shortfall amount under [section 299](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2023-08-01) as it applies to a claim for group relief under Part 5 of CTA 2010.
- (2) That Part has effect for the purposes of a claim to a shortfall amount as if—
@@ -8668,7 +8668,7 @@
- (f) in paragraph 70—
- (i) in sub-paragraph (1), for “Requirement 1 in section 130(2), 135(2), 188CB(3) or (as the case may be) 188CC(3) of the Corporation Tax Act 2010” there were substituted “[section 299](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2023-07-31)[(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/9/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/9/a/2023-07-31) of the Finance (No. 2) Act 2023”, and
- (i) in sub-paragraph (1), for “Requirement 1 in section 130(2), 135(2), 188CB(3) or (as the case may be) 188CC(3) of the Corporation Tax Act 2010” there were substituted “[section 299](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2023-08-01)[(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/9/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/299/9/a/2023-08-01) of the Finance (No. 2) Act 2023”, and
- (ii) sub-paragraphs (2), (5) and (6) were omitted,
@@ -8692,7 +8692,7 @@
- (1) Section 59E of TMA 1970 (further provision as to when corporation tax is due and payable) has effect as if, in subsection (11) after paragraph (f) there were inserted—
> (g) to any sum chargeable on a company under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31) of the Finance (No. 2) Act 2023 (electricity generator levy) as if it were an amount of corporation tax chargeable on the company.
> (g) to any sum chargeable on a company under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01) of the Finance (No. 2) Act 2023 (electricity generator levy) as if it were an amount of corporation tax chargeable on the company.
- (2) Section 59F of that Act (arrangements for paying corporation tax on behalf of group members) has effect as if, in subsection (6)—
@@ -8701,11 +8701,11 @@
- (b) after paragraph (e) there were inserted
> , and
> (f) to any sum chargeable on a company under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31) of the Finance (No. 2) Act 2023 (electricity generator levy) as if it were an amount of corporation tax chargeable on the company.
> (f) to any sum chargeable on a company under [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01) of the Finance (No. 2) Act 2023 (electricity generator levy) as if it were an amount of corporation tax chargeable on the company.
- (3) The Instalment Payment Regulations have effect as if—
- (a) in paragraph (2), after “company” there were inserted “, other than a company that is, or is a member of a group that is, a generating undertaking (within the meaning of [Part 5](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) of the Finance (No. 2) Act 2023),”, and
- (a) in paragraph (2), after “company” there were inserted “, other than a company that is, or is a member of a group that is, a generating undertaking (within the meaning of [Part 5](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) of the Finance (No. 2) Act 2023),”, and
- (b) after that paragraph there were inserted—
@@ -8726,13 +8726,13 @@
- (5) The first instalment in respect of that liability which is treated as becoming due and payable on or after the day on which this Act is passed is to be increased by the following amount, namely the difference between—
- (a) the aggregate amount of the pre-commencement instalments determined in accordance with [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/306/4/2023-07-31), and
- (a) the aggregate amount of the pre-commencement instalments determined in accordance with [subsection (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/306/4/2023-08-01), and
- (b) the aggregate amount of those instalments determined ignoring that subsection.
- (6) In the Instalment Payment Regulations—
- (a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to those Regulations are to be read as including a reference to [subsections (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/306/4/2023-07-31) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/306/5/2023-07-31) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and
- (a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to those Regulations are to be read as including a reference to [subsections (4)](https://www.legislation.gov.uk/ukpga/2023/30/section/306/4/2023-08-01) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/306/5/2023-08-01) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and
- (b) in regulation 9(3), the reference to those Regulations is to be read as including a reference to those subsections.
@@ -8746,17 +8746,17 @@
- (1) Chapter 6 of Part 5 of CTA 2010 (group relief: equity holders and profits or assets available for distribution) applies for the purposes of determining the interests of persons in companies under the following provisions (each a “relevant provision”)—
- (a) [section 287](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/2023-07-31);
- (b) [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/2023-07-31);
- (c) [section 292](https://www.legislation.gov.uk/ukpga/2023/30/section/292/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/b/2023-07-31)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/b/ii/2023-07-31), [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/3/b/2023-07-31) and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/4/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/4/b/2023-07-31);
- (d) [section 293](https://www.legislation.gov.uk/ukpga/2023/30/section/293/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/7/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/7/b/2023-07-31);
- (e) [section 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/5/b/2023-07-31);
- (f) [section 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/7/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/7/b/2023-07-31).
- (a) [section 287](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/4/2023-08-01);
- (b) [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/2023-08-01);
- (c) [section 292](https://www.legislation.gov.uk/ukpga/2023/30/section/292/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/b/2023-08-01)[(ii)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/b/ii/2023-08-01), [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/3/b/2023-08-01) and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/4/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/4/b/2023-08-01);
- (d) [section 293](https://www.legislation.gov.uk/ukpga/2023/30/section/293/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/7/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/7/b/2023-08-01);
- (e) [section 294](https://www.legislation.gov.uk/ukpga/2023/30/section/294/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/294/5/b/2023-08-01);
- (f) [section 296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/7/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/296/7/b/2023-08-01).
- (2) For those purposes that Part has effect as if—
@@ -8770,7 +8770,7 @@
- (c) sections 171(1)(b) and (3), 173, 174 and 176 to 178 of that Act were omitted, and
- (d) in its application for the purposes of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/a/2023-07-31) of [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/2023-07-31), any reference to company A were to the person referred to in that paragraph.
- (d) in its application for the purposes of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/a/2023-08-01) of [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/2023-08-01), any reference to company A were to the person referred to in that paragraph.
- (3) That Part is to be read, for the purposes mentioned in subsection (1), with all modifications necessary to ensure that—
@@ -8780,25 +8780,25 @@
- (c) it applies in relation to ownership through an entity (other than a company), or any trust or other arrangement, in a way which corresponds to the way it applies to ownership through a company, and
- (d) for the purposes of achieving [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/307/3/a/2023-07-31) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/307/3/c/2023-07-31), profits or assets are attributed to holders of corresponding ordinary holdings in unincorporated associations, entities, trusts or other arrangements in a manner which corresponds to the way profits or assets are attributed to holders of ordinary shares in a company which is a body corporate.
- (4) In [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/307/3/2023-07-31) “corresponding ordinary holding” in an unincorporated association, entity, trust or other arrangement means a holding or interest which provides the holder with economic rights corresponding to those provided by a holding of ordinary shares in a body corporate.
- (d) for the purposes of achieving [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/307/3/a/2023-08-01) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/307/3/c/2023-08-01), profits or assets are attributed to holders of corresponding ordinary holdings in unincorporated associations, entities, trusts or other arrangements in a manner which corresponds to the way profits or assets are attributed to holders of ordinary shares in a company which is a body corporate.
- (4) In [subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/307/3/2023-08-01) “corresponding ordinary holding” in an unincorporated association, entity, trust or other arrangement means a holding or interest which provides the holder with economic rights corresponding to those provided by a holding of ordinary shares in a body corporate.
#### Anti-avoidance
##### 308
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-07-31) applies to arrangements if the main purpose, or one of the main purposes of the arrangements, is to—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-08-01) applies to arrangements if the main purpose, or one of the main purposes of the arrangements, is to—
- (a) reduce or avoid a charge to the electricity generator levy, or
- (b) otherwise avoid the effect of any of the provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31).
- (2) Any such reduction or avoidance that would (in the absence of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-07-31)) arise from such arrangements is to be counteracted by the making of such adjustments as are just and reasonable.
- (b) otherwise avoid the effect of any of the provisions of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01).
- (2) Any such reduction or avoidance that would (in the absence of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-08-01)) arise from such arrangements is to be counteracted by the making of such adjustments as are just and reasonable.
- (3) Where the arrangements result in a change in the composition of a generating undertaking that is a group (including where such a group ceases to exist), those adjustments may include adjustments to secure that the same liability to electricity generator levy arises, and can be recovered from members of the group, as if the composition of the group had not changed.
- (4) Any adjustments required to be made under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-07-31) (whether or not by an officer of Revenue and Customs) may be made by way of—
- (4) Any adjustments required to be made under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-08-01) (whether or not by an officer of Revenue and Customs) may be made by way of—
- (a) an assessment,
@@ -8808,23 +8808,23 @@
or otherwise.
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-07-31) “arrangements” include any agreement, understanding, scheme transaction or series of transactions (whether or not legally enforceable).
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/308/2023-08-01) “arrangements” include any agreement, understanding, scheme transaction or series of transactions (whether or not legally enforceable).
#### Information sharing
##### 309
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-07-31) applies to information that—
- (1) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-08-01) applies to information that—
- (a) is held by the Secretary of State, the Gas and Electricity Markets Authority or the Northern Ireland Authority for Energy Regulation (each “a relevant person”), and
- (b) is relevant to the electricity generator levy.
- (2) Information to which [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-07-31) applies may be disclosed by a relevant person (or anyone acting on behalf of that person) to the Commissioners for His Majesty’s Revenue and Customs for the purposes of their functions relating to electricity generator levy or any other tax.
- (3) Subject to [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/309/5/2023-07-31), no duty of confidentiality or other restriction on disclosure (however imposed) prevents the disclosure of information in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2/2023-07-31).
- (4) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-07-31) does not limit the circumstances in which information may be disclosed under—
- (2) Information to which [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-08-01) applies may be disclosed by a relevant person (or anyone acting on behalf of that person) to the Commissioners for His Majesty’s Revenue and Customs for the purposes of their functions relating to electricity generator levy or any other tax.
- (3) Subject to [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/309/5/2023-08-01), no duty of confidentiality or other restriction on disclosure (however imposed) prevents the disclosure of information in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2/2023-08-01).
- (4) [This section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-08-01) does not limit the circumstances in which information may be disclosed under—
- (a) section 105(2) to (4) of the Utilities Act 2000,
@@ -8832,11 +8832,11 @@
- (c) any other enactment or rule of law.
- (5) Nothing in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-07-31) authorises the making of a disclosure which—
- (a) contravenes the data protection legislation (save that the power conferred by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-07-31) is to be taken into account in determining whether a disclosure contravenes that legislation), or
- (b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016 (save that the power conferred by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-07-31) is to be taken into account when determining whether a disclosure is prohibited by those provisions).
- (5) Nothing in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-08-01) authorises the making of a disclosure which—
- (a) contravenes the data protection legislation (save that the power conferred by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-08-01) is to be taken into account in determining whether a disclosure contravenes that legislation), or
- (b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016 (save that the power conferred by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/309/2023-08-01) is to be taken into account when determining whether a disclosure is prohibited by those provisions).
#### Interaction of electricity generator levy with corporation tax
@@ -8848,11 +8848,11 @@
- (b) no account is to be taken of any amount which is paid by a person to another person for the purposes of meeting or reimbursing the cost of the electricity generator levy.
- (2) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/310/3/2023-07-31) applies if—
- (a) two related generating undertakings (within the meaning of [section 298](https://www.legislation.gov.uk/ukpga/2023/30/section/298/2023-07-31)) have an agreement between them in relation to the surrender of amounts of shortfall amounts (within the meaning of that section),
- (b) such an amount is surrendered between them in accordance with [section 299](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2023-07-31), and
- (2) [Subsection (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/310/3/2023-08-01) applies if—
- (a) two related generating undertakings (within the meaning of [section 298](https://www.legislation.gov.uk/ukpga/2023/30/section/298/2023-08-01)) have an agreement between them in relation to the surrender of amounts of shortfall amounts (within the meaning of that section),
- (b) such an amount is surrendered between them in accordance with [section 299](https://www.legislation.gov.uk/ukpga/2023/30/section/299/2023-08-01), and
- (c) as a result of the agreement the undertaking to whom the amount is surrendered makes a payment to the other undertaking that does not exceed the amount surrendered.
@@ -8866,9 +8866,9 @@
##### 311
- (1) Regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) are to be made by statutory instrument.
- (2) Regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) may—
- (1) Regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) are to be made by statutory instrument.
- (2) Regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) may—
- (a) make provision having retrospective effect, provided any such provision does not have the effect of increasing the amount of the electricity generator levy any generating undertaking is liable to;
@@ -8878,7 +8878,7 @@
- (d) make transitional or transitory provision and savings.
- (3) A statutory instrument containing regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) is subject to annulment in pursuance of a resolution of the House of Commons.
- (3) A statutory instrument containing regulations under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) is subject to annulment in pursuance of a resolution of the House of Commons.
#### Minor definitions relating to electricity market
@@ -8910,50 +8910,50 @@
##### 313
The following table contains a list of terms used in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-07-31) and the provisions that define or explain them.
The following table contains a list of terms used in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/part/5/2023-08-01) and the provisions that define or explain them.
| *Term* | *Provision defining or explaining* |
| --- | --- |
| accounting period (generally) | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/3/2023-07-31) |
| accounting period (of a generating undertaking that is a group) | [section 288](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/1/2023-07-31) |
| allowable costs | [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/1/2023-07-31) |
| arm's length provision | [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-07-31)[(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/9/2023-07-31) |
| Balancing and Settlement Code | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-07-31) |
| baseline fuel cost | [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/3/2023-07-31) |
| company | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-07-31) |
| company tax return | [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/3/2023-07-31) |
| distribution system | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-07-31) |
| electricity generator levy | [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2/2023-07-31) |
| exceptional generation fuel costs | [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/1/2023-07-31) |
| feed-in tariff export payments | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-07-31) |
| generating undertaking | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-07-31) |
| generation fuel costs | [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2/2023-07-31) |
| generation receipts | [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2/2023-07-31) |
| grid connected electricity generation | [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-07-31) |
| group | [section 287](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/1/2023-07-31) |
| HMRC | [section 281](https://www.legislation.gov.uk/ukpga/2023/30/section/281/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/281/3/2023-07-31) |
| joint venture undertaking | [section 293](https://www.legislation.gov.uk/ukpga/2023/30/section/293/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/2/2023-07-31) |
| lead member (of a group) | [section 288](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2/2023-07-31) |
| principal member (of a group) | [section 287](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2/2023-07-31) |
| qualifying electricity purchase costs | [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/6/2023-07-31) |
| qualifying joint venture | [section 292](https://www.legislation.gov.uk/ukpga/2023/30/section/292/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/2023-07-31) |
| qualifying partnership | [section 291](https://www.legislation.gov.uk/ukpga/2023/30/section/291/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/291/1/2023-07-31) |
| qualifying period | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2/2023-07-31) |
| reference period (in relation to the determination of baseline fuel cost) | [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/4/2023-07-31) |
| relevant generating station | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-07-31) |
| relevant place | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-07-31) |
| relevant subsidiary (in [sections 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31), [296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-07-31) and [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-07-31)) | [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/6/2023-07-31) |
| SEM Memorandum | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-07-31) |
| settlement code | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-07-31) |
| significant equity holder | [section 286](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/7/2023-07-31) |
| significant minority shareholder (that is a person) | [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/a/2023-07-31) |
| significant minority shareholder (that is a group of companies) | [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/b/2023-07-31) |
| standard conditions of electricity supply licences | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-07-31) |
| subject to a contract for difference, an investment contract, a revenue collection contract or feed-in tariff export payments (in relation to a generating station) | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-07-31) |
| subsidiary member (of a group) | [section 287](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/3/2023-07-31) |
| third party (in relation to a generating undertaking) | [section 286](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2023-07-31)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/7/2023-07-31) |
| Trading and Settlement Code | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-07-31) |
| transmission system | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-07-31) |
| accounting period (generally) | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/3/2023-08-01) |
| accounting period (of a generating undertaking that is a group) | [section 288](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/1/2023-08-01) |
| allowable costs | [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/1/2023-08-01) |
| arm's length provision | [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-08-01)[(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/9/2023-08-01) |
| Balancing and Settlement Code | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-08-01) |
| baseline fuel cost | [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/3/2023-08-01) |
| company | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-08-01) |
| company tax return | [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/3/2023-08-01) |
| distribution system | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-08-01) |
| electricity generator levy | [section 279](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/279/2/2023-08-01) |
| exceptional generation fuel costs | [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/1/2023-08-01) |
| feed-in tariff export payments | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-08-01) |
| generating undertaking | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-08-01) |
| generation fuel costs | [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2/2023-08-01) |
| generation receipts | [section 283](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/283/2/2023-08-01) |
| grid connected electricity generation | [section 282](https://www.legislation.gov.uk/ukpga/2023/30/section/282/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/282/3/2023-08-01) |
| group | [section 287](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/1/2023-08-01) |
| HMRC | [section 281](https://www.legislation.gov.uk/ukpga/2023/30/section/281/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/281/3/2023-08-01) |
| joint venture undertaking | [section 293](https://www.legislation.gov.uk/ukpga/2023/30/section/293/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/293/2/2023-08-01) |
| lead member (of a group) | [section 288](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/288/2/2023-08-01) |
| principal member (of a group) | [section 287](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2/2023-08-01) |
| qualifying electricity purchase costs | [section 284](https://www.legislation.gov.uk/ukpga/2023/30/section/284/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/284/6/2023-08-01) |
| qualifying joint venture | [section 292](https://www.legislation.gov.uk/ukpga/2023/30/section/292/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/292/1/2023-08-01) |
| qualifying partnership | [section 291](https://www.legislation.gov.uk/ukpga/2023/30/section/291/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/291/1/2023-08-01) |
| qualifying period | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2/2023-08-01) |
| reference period (in relation to the determination of baseline fuel cost) | [section 285](https://www.legislation.gov.uk/ukpga/2023/30/section/285/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/285/4/2023-08-01) |
| relevant generating station | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-08-01) |
| relevant place | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-08-01) |
| relevant subsidiary (in [sections 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01), [296](https://www.legislation.gov.uk/ukpga/2023/30/section/296/2023-08-01) and [297](https://www.legislation.gov.uk/ukpga/2023/30/section/297/2023-08-01)) | [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/6/2023-08-01) |
| SEM Memorandum | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-08-01) |
| settlement code | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-08-01) |
| significant equity holder | [section 286](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/7/2023-08-01) |
| significant minority shareholder (that is a person) | [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/a/2023-08-01) |
| significant minority shareholder (that is a group of companies) | [section 290](https://www.legislation.gov.uk/ukpga/2023/30/section/290/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/290/5/b/2023-08-01) |
| standard conditions of electricity supply licences | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-08-01) |
| subject to a contract for difference, an investment contract, a revenue collection contract or feed-in tariff export payments (in relation to a generating station) | [section 280](https://www.legislation.gov.uk/ukpga/2023/30/section/280/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/280/1/2023-08-01) |
| subsidiary member (of a group) | [section 287](https://www.legislation.gov.uk/ukpga/2023/30/section/287/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/287/3/2023-08-01) |
| third party (in relation to a generating undertaking) | [section 286](https://www.legislation.gov.uk/ukpga/2023/30/section/286/2023-08-01)[(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/286/7/2023-08-01) |
| Trading and Settlement Code | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-08-01) |
| transmission system | [section 312](https://www.legislation.gov.uk/ukpga/2023/30/section/312/2023-08-01) |
## Part 6 — Other taxes
@@ -8967,7 +8967,7 @@
> (5) In this section “public subsidy” also means any grant under section 31 of the Local Government Act 2003 (grants towards expenditure incurred or to be incurred by local authorities) towards expenditure incurred or to be incurred on the provision of social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008 (see sections 68 and 72 of that Act).
- (2) The amendment made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/314/1/2023-07-31) has effect in relation to land transactions the effective date of which falls on or after 15 March 2023.
- (2) The amendment made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/314/1/2023-08-01) has effect in relation to land transactions the effective date of which falls on or after 15 March 2023.
### Value added tax
@@ -9019,7 +9019,7 @@
##### 316
Schedules [19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/19/2023-07-31) and [20](https://www.legislation.gov.uk/ukpga/2023/30/schedule/20/2023-07-31) make provision for the purposes of import duty—
Schedules [19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/19/2023-08-01) and [20](https://www.legislation.gov.uk/ukpga/2023/30/schedule/20/2023-08-01) make provision for the purposes of import duty—
- (a) requiring the Trade Remedies Authority (“the TRA”) to give the Secretary of State notice at certain points in dumping, subsidisation and safeguarding investigations,
@@ -9062,7 +9062,7 @@
- (2) In CEMA 1979, omit section 119 (delivery of imported goods on giving of security for duty).
- (3) The amendments made by [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/318/1/2023-07-31) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/318/2/2023-07-31) have effect in relation to goods in respect of which a Customs declaration is accepted, for the purposes of TCTA 2018, on or after the day on which this Act is passed (and subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/318/2/2023-07-31) does not affect the application of section 119 of CEMA 1979 in relation to goods in respect of which a Customs declaration is accepted before that day).
- (3) The amendments made by [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/318/1/2023-08-01) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/318/2/2023-08-01) have effect in relation to goods in respect of which a Customs declaration is accepted, for the purposes of TCTA 2018, on or after the day on which this Act is passed (and subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/318/2/2023-08-01) does not affect the application of section 119 of CEMA 1979 in relation to goods in respect of which a Customs declaration is accepted before that day).
- (4) In Schedule 7 to TCTA 2018 (import duty: consequential amendments), omit paragraph 90.
@@ -9074,7 +9074,7 @@
- (1) HODA 1979 is amended as follows.
- (2) Schedule 1A (excepted machines able to use rebated diesel etc) is amended in accordance with subsections [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/319/3/2023-07-31) and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/319/4/2023-07-31).
- (2) Schedule 1A (excepted machines able to use rebated diesel etc) is amended in accordance with subsections [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/319/3/2023-08-01) and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/319/4/2023-08-01).
- (3) In paragraph 6 (vessels)—
@@ -9107,7 +9107,7 @@
> - “*BD%*” means the percentage of the bioblend that is biodiesel,
> where the percentages are by volume to the nearest 0.001%.
- (6) The amendments made by subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/319/2/2023-07-31) to [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/319/4/2023-07-31) are to be treated as having come into force on 15 March 2023.
- (6) The amendments made by subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/319/2/2023-08-01) to [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/319/4/2023-08-01) are to be treated as having come into force on 15 March 2023.
### Tobacco products duty
@@ -9124,7 +9124,7 @@
| 4 Other smoking tobacco and chewing tobacco | £161.62 per kilogram |
| 5 Tobacco for heating | £302.93 per kilogram |
- (2) In consequence of the provision made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/320/1/2023-07-31), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
- (2) In consequence of the provision made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/320/1/2023-08-01), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
- (a) in the entry relating to cigarettes, for “£347.86” substitute “£393.45”,
@@ -9146,7 +9146,7 @@
##### 321
[Schedule 21](https://www.legislation.gov.uk/ukpga/2023/30/schedule/21/2023-07-31) makes amendments of Part 2 of FA 2017 (soft drinks industry levy) in connection with flavour concentrates.
[Schedule 21](https://www.legislation.gov.uk/ukpga/2023/30/schedule/21/2023-08-01) makes amendments of Part 2 of FA 2017 (soft drinks industry levy) in connection with flavour concentrates.
### Air passenger duty
@@ -9260,7 +9260,7 @@
- (c) in sub-paragraph (viii), for “(a)” substitute “(za), (a), (aa)”.
- (10) The amendments made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/322/2023-07-31) have effect in relation to the carriage of passengers beginning on or after 1 April 2023.
- (10) The amendments made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/322/2023-08-01) have effect in relation to the carriage of passengers beginning on or after 1 April 2023.
#### Northern Ireland rates
@@ -9393,7 +9393,7 @@
##### 325
[Schedule 22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/22/2023-07-31) makes provision (including consequential provision) about—
[Schedule 22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/22/2023-08-01) makes provision (including consequential provision) about—
- (a) the charging of HGV road user levy in respect of UK-registered and non-UK registered heavy goods vehicles,
@@ -9478,7 +9478,7 @@
- (3) In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), for “12” substitute “11”.
- (4) In consequence of the amendment made by subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/328/3/2023-07-31), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001 ([S.I. 2001/838](https://www.legislation.gov.uk/uksi/2001/838)), for “0.88” substitute “0.89”.
- (4) In consequence of the amendment made by subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/328/3/2023-08-01), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001 ([S.I. 2001/838](https://www.legislation.gov.uk/uksi/2001/838)), for “0.88” substitute “0.89”.
- (5) The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2024.
@@ -9565,21 +9565,21 @@
> (5) For the purposes of this section any reference to a freeport or an investment zone is to an area which is identified as such in a document published by, or with the consent of, the Treasury for the purposes of this section (and not withdrawn).
- (5) [Schedule 23](https://www.legislation.gov.uk/ukpga/2023/30/schedule/23/2023-07-31) makes amendments in consequence of the provision made by this section.
- (5) [Schedule 23](https://www.legislation.gov.uk/ukpga/2023/30/schedule/23/2023-08-01) makes amendments in consequence of the provision made by this section.
#### Sunset date for reliefs
##### 332
- (1) In section 61A of FA 2003 (relief from stamp duty land tax in case of transactions relating to land in designated sites), in subsection (3), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see [section 332](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-07-31) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/5/2023-07-31) of the Finance (No.2) Act 2023)”.
- (2) In section 45O of CAA 2001 (enhanced capital allowances in case of expenditure on plant or machinery for use in designated sites), in subsection (5), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see [section 332](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-07-31) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/5/2023-07-31) of F(No.2)A 2023)”.
- (1) In section 61A of FA 2003 (relief from stamp duty land tax in case of transactions relating to land in designated sites), in subsection (3), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see [section 332](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-08-01) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/5/2023-08-01) of the Finance (No.2) Act 2023)”.
- (2) In section 45O of CAA 2001 (enhanced capital allowances in case of expenditure on plant or machinery for use in designated sites), in subsection (5), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see [section 332](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-08-01) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/5/2023-08-01) of F(No.2)A 2023)”.
- (3) In Chapter 2A of Part 2A of CAA 2001 (enhanced structures and building allowances in case of buildings or structures in designated sites)—
- (a) in section 270BNA—
- (i) in subsection (3)(b), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see [section 332](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-07-31) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/5/2023-07-31) of F(No.2)A 2023)”, and
- (i) in subsection (3)(b), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see [section 332](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-08-01) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/5/2023-08-01) of F(No.2)A 2023)”, and
- (ii) in subsection (4)(b), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned”, and
@@ -9597,7 +9597,7 @@
- (b) may amend the sunset provisions.
- (6) [Schedule 23](https://www.legislation.gov.uk/ukpga/2023/30/schedule/23/2023-07-31) makes amendments in consequence of the provision made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-07-31).
- (6) [Schedule 23](https://www.legislation.gov.uk/ukpga/2023/30/schedule/23/2023-08-01) makes amendments in consequence of the provision made by [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-08-01).
### Administration
@@ -9609,7 +9609,7 @@
- (2) Every assignment of a right of an individual to a repayment of income tax from HMRC, and every agreement to assign any such right, is void.
- (3) Subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/333/2/2023-07-31) has effect in relation to assignments and agreements to assign of which HMRC receives notice on or after 15 March 2023.
- (3) Subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/333/2/2023-08-01) has effect in relation to assignments and agreements to assign of which HMRC receives notice on or after 15 March 2023.
- (4) In the application of this section to Scotland the reference to assignment of a right is to be read as a reference to assignation, “assign” being construed accordingly.
@@ -9633,9 +9633,9 @@
> (b) section 80C(1) of that Act.
> (2) The late payment interest start date in respect of that amount is the date on which HMRC paid or credited that amount to the person.
- (3) Where, ignoring this subsection, the late payment interest start date in respect of an amount would, by virtue of paragraph 11ZA of Schedule 53 to FA 2009 (inserted by subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/334/2/2023-07-31)), be a date before 15 March 2023, the late payment interest start date in respect of that amount is instead 15 March 2023.
- (4) The amendment made by subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/334/1/2023-07-31) is treated as having been made under section 101(2)(c) of FA 2009 (power to specify descriptions of amounts payable to HMRC that are not subject to late payment interest).
- (3) Where, ignoring this subsection, the late payment interest start date in respect of an amount would, by virtue of paragraph 11ZA of Schedule 53 to FA 2009 (inserted by subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/334/2/2023-08-01)), be a date before 15 March 2023, the late payment interest start date in respect of that amount is instead 15 March 2023.
- (4) The amendment made by subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/334/1/2023-08-01) is treated as having been made under section 101(2)(c) of FA 2009 (power to specify descriptions of amounts payable to HMRC that are not subject to late payment interest).
- (5) This section is treated as having come into force on 15 March 2023.
@@ -9643,7 +9643,7 @@
##### 335
- (1) Paragraph 1 of Schedule 26 to FA 2021 (penalties for failure to pay tax) is amended in accordance with subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/335/2/2023-07-31) to [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/335/4/2023-07-31).
- (1) Paragraph 1 of Schedule 26 to FA 2021 (penalties for failure to pay tax) is amended in accordance with subsections [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/335/2/2023-08-01) to [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/335/4/2023-08-01).
- (2) The existing text becomes sub-paragraph (1).
@@ -9899,7 +9899,7 @@
> (a) the date on which the application is made, or
> (b) if, on that date, the licensing authority is prevented from considering the application by paragraph 2(2) or 3(2) of Schedule 33 to the Finance Act 2021 (which contain requirements to be complied with before applications may be considered), the date on which the licensing authority ceases to be so prevented.
- (3) Paragraph 7 of Schedule 1 (temporary licenses) is amended in accordance with subsections [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/343/4/2023-07-31) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/343/5/2023-07-31).
- (3) Paragraph 7 of Schedule 1 (temporary licenses) is amended in accordance with subsections [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/343/4/2023-08-01) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/343/5/2023-08-01).
- (4) In sub-paragraph (6), before paragraph (a) insert—
@@ -9916,7 +9916,7 @@
> (a) the period of 7 days beginning with the day on which the request under sub-paragraph (6)[(za)](#p23951)[(i)](#p23954) is made, or
> (b) if the final day of that period is earlier than the day on which (disregarding sub-paragraph (6)) the temporary licence expires, the period ending with that later day.
- (6) Paragraph 8 of Schedule 1 (duration of licences) is amended in accordance with subsections [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/343/7/2023-07-31) and [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/343/8/2023-07-31).
- (6) Paragraph 8 of Schedule 1 (duration of licences) is amended in accordance with subsections [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/343/7/2023-08-01) and [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/343/8/2023-08-01).
- (7) In sub-paragraph (6), before paragraph (a) insert—
@@ -9967,7 +9967,7 @@
- (j) for the purposes of diverted profits tax, in relation to accounting periods beginning on or after 1 April 2024.
- (3) Notwithstanding subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/2023-07-31)[(g)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/g/2023-07-31), the amendments made by this section do not have effect for the purposes of stamp duty land tax in relation to a transaction entered into by a body of persons or trust that has asserted its status as a charity if—
- (3) Notwithstanding subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/2023-08-01)[(g)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/g/2023-08-01), the amendments made by this section do not have effect for the purposes of stamp duty land tax in relation to a transaction entered into by a body of persons or trust that has asserted its status as a charity if—
- (a) the transaction is effected in pursuance of a contract entered into and substantially performed before 1 April 2024, or
@@ -9975,7 +9975,7 @@
- (i) is effected in pursuance of a contract entered into before 15 March 2023, and
- (ii) is not excluded for the purposes of this paragraph by subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/6/2023-07-31).
- (ii) is not excluded for the purposes of this paragraph by subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/6/2023-08-01).
- (4) In relation to a body of persons or trust that has not asserted its status as a charity, the amendments made by this section have effect—
@@ -10007,7 +10007,7 @@
- (j) for the purposes of diverted profits tax, in relation to accounting periods beginning on or after 15 March 2023.
- (5) Notwithstanding subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/2023-07-31)[(g)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/g/2023-07-31), the amendments made by this section do not have effect for the purposes of stamp duty land tax in relation to a transaction entered into by a body of persons or trust that has not asserted its status as a charity if—
- (5) Notwithstanding subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/2023-08-01)[(g)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/g/2023-08-01), the amendments made by this section do not have effect for the purposes of stamp duty land tax in relation to a transaction entered into by a body of persons or trust that has not asserted its status as a charity if—
- (a) the transaction is effected in pursuance of a contract entered into and substantially performed before 15 March 2023, or
@@ -10015,9 +10015,9 @@
- (i) is effected in pursuance of a contract entered into before that date, and
- (ii) is not excluded for the purposes of this paragraph by subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/6/2023-07-31).
- (6) A transaction is excluded for the purposes of subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/3/b/2023-07-31) or [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/5/b/2023-07-31) if—
- (ii) is not excluded for the purposes of this paragraph by subsection [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/6/2023-08-01).
- (6) A transaction is excluded for the purposes of subsection [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/3/b/2023-08-01) or [(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/5/b/2023-08-01) if—
- (a) there is any variation of the contract, or assignment of rights under the contract, on or after 15 March 2023,
@@ -10033,15 +10033,15 @@
are to be treated for relevant purposes as separate accounting periods.
- (8) In subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/7/2023-07-31)—
- “*commencement date*” means the date mentioned in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/c/2023-07-31) or [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/c/2023-07-31);
- “*relevant purposes*” means the purposes of determining the company’s liability to any charge to a tax mentioned in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/2023-07-31) or [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/2023-07-31), or eligibility for any relief relating to such a tax, that is affected by the company’s status as a charity.
- (9) An apportionment to different periods which falls to be made as a result of subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/a/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/a/i/2023-07-31) or [(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/i/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/i/i/2023-07-31) is to be made on a time basis according to the respective length of the periods.
For the corresponding rule applying to apportionments falling to be made as a result of subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/7/2023-07-31), see section 1172 of CTA 2010.
- (8) In subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/7/2023-08-01)—
- “*commencement date*” means the date mentioned in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/c/2023-08-01) or [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/c/2023-08-01);
- “*relevant purposes*” means the purposes of determining the company’s liability to any charge to a tax mentioned in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/2/2023-08-01) or [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/2023-08-01), or eligibility for any relief relating to such a tax, that is affected by the company’s status as a charity.
- (9) An apportionment to different periods which falls to be made as a result of subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/a/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/a/i/2023-08-01) or [(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/i/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/4/i/i/2023-08-01) is to be made on a time basis according to the respective length of the periods.
For the corresponding rule applying to apportionments falling to be made as a result of subsection [(7)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/7/2023-08-01), see section 1172 of CTA 2010.
- (10) For the purposes of this section a body of persons or trust has “asserted its status as a charity” if—
@@ -10063,15 +10063,15 @@
is, at any later time, a relevant qualifying investor in relation to that interest.
- (12) In subsection [(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/11/2023-07-31)—
- (a) expressions used in paragraph [(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/11/a/2023-07-31) have the same meaning as in Part 12 of CTA 2010 (real estate investment trusts);
- (b) expressions used in paragraph [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/11/b/2023-07-31) have the same meaning as in the Unauthorised Unit Trusts (Tax) Regulations 2013 ([S.I. 2013/2819](https://www.legislation.gov.uk/uksi/2013/2819));
- (c) expressions used in paragraph [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/11/c/2023-07-31), have the same meaning as in Schedule 2 to FA 2022 (qualifying asset holding companies).
- (13) The following regulations were made under a power contained in paragraph 2(3) to (5) of Schedule 6 to FA 2010 and are therefore revoked by virtue of subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/1/b/2023-07-31)—
- (12) In subsection [(11)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/11/2023-08-01)—
- (a) expressions used in paragraph [(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/11/a/2023-08-01) have the same meaning as in Part 12 of CTA 2010 (real estate investment trusts);
- (b) expressions used in paragraph [(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/11/b/2023-08-01) have the same meaning as in the Unauthorised Unit Trusts (Tax) Regulations 2013 ([S.I. 2013/2819](https://www.legislation.gov.uk/uksi/2013/2819));
- (c) expressions used in paragraph [(c)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/11/c/2023-08-01), have the same meaning as in Schedule 2 to FA 2022 (qualifying asset holding companies).
- (13) The following regulations were made under a power contained in paragraph 2(3) to (5) of Schedule 6 to FA 2010 and are therefore revoked by virtue of subsection [(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/344/1/b/2023-08-01)—
- (a) the Taxes (Definition of Charity) (Relevant Territories) Regulations 2010 ([S.I. 2010/1904](https://www.legislation.gov.uk/uksi/2010/1904));
@@ -10103,9 +10103,9 @@
are to be treated for relevant purposes as separate accounting periods.
- (5) In subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/345/4/2023-07-31)—
- “*commencement date*” means the date mentioned in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/345/2/2023-07-31) or [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/345/3/2023-07-31);
- (5) In subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/345/4/2023-08-01)—
- “*commencement date*” means the date mentioned in subsection [(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/345/2/2023-08-01) or [(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/345/3/2023-08-01);
- “*relevant purposes*” means the purposes of determining the club’s liability to any charge to tax, or eligibility for any tax relief, that is affected by the club’s status as a CASC.
@@ -10121,7 +10121,7 @@
##### 346
- (1) [Schedule 24](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/2023-07-31) makes provision about the Homes for Ukraine Sponsorship Scheme in relation to—
- (1) [Schedule 24](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/2023-08-01) makes provision about the Homes for Ukraine Sponsorship Scheme in relation to—
- (a) income tax
@@ -10131,7 +10131,7 @@
- (d) stamp duty land tax.
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/346/2023-07-31) and in [Schedule 24](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/2023-07-31), “*the Homes for Ukraine Sponsorship Scheme*” means the scheme contained in paragraphs UKR 11.1 to UKR 20.2 of Appendix Ukraine Scheme to the immigration rules (within the meaning of the Immigration Act 1971).
- (2) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/346/2023-08-01) and in [Schedule 24](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/2023-08-01), “*the Homes for Ukraine Sponsorship Scheme*” means the scheme contained in paragraphs UKR 11.1 to UKR 20.2 of Appendix Ukraine Scheme to the immigration rules (within the meaning of the Immigration Act 1971).
### Office of Tax Simplification
@@ -10141,7 +10141,7 @@
- (1) The Office of Tax Simplification is abolished.
- (2) The amendments in [subsections (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/347/3/2023-07-31) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/347/8/2023-07-31) are made in consequence of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/347/1/2023-07-31).
- (2) The amendments in [subsections (3)](https://www.legislation.gov.uk/ukpga/2023/30/section/347/3/2023-08-01) to [(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/347/8/2023-08-01) are made in consequence of [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/347/1/2023-08-01).
- (3) In the House of Commons Disqualification Act 1975, in Part 2 of Schedule 1 (bodies of which all members are disqualified) omit the entry for the Office of Tax Simplification.
@@ -10217,9 +10217,9 @@
> - “*authorised reclaim fund*” has the same meaning as in the Dormant Assets Acts 2008 to 2022;
> - “*the original rights*” are— in a case where— section 8 of the 2022 Act (investment assets) applies in relation to the asset and there has been a conversion as mentioned in section 9(3)(a) of that Act in connection with the transfer, or section 14 of the 2022 Act (securities assets) applies in relation to the asset and there has been a conversion as mentioned in section 15(1)(a) of that Act in connection with the transfer, P’s rights against the institution immediately before that conversion; in any other case, P’s rights against the institution immediately before the transfer.
- (3) The amendments made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/348/1/2023-07-31) come into force on the day on which this Act is passed.
- (4) The amendment made by [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/348/2/2023-07-31) is treated as having come into force on 6 June 2022.
- (3) The amendments made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/348/1/2023-08-01) come into force on the day on which this Act is passed.
- (4) The amendment made by [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/348/2/2023-08-01) is treated as having come into force on 6 June 2022.
### Other
@@ -10229,7 +10229,7 @@
- (1) The Treasury may make regulations for, or in connection with, giving effect to international tax compliance arrangements to any extent, subject to such exceptions or modifications as the Treasury consider appropriate.
- (2) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2023-07-31), “*international tax compliance arrangements*” means any provision of—
- (2) For the purposes of [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2023-08-01), “*international tax compliance arrangements*” means any provision of—
- (a) arrangements specified in an Order in Council made under section 173 of FA 2006 (international tax enforcement arrangements);
@@ -10243,11 +10243,11 @@
- (f) the OECD Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy, published on 3 July 2020;
- (g) any other arrangements or agreements made in relation to any territory or territories outside the United Kingdom, or documents related to those arrangements or agreements, which make provision corresponding or similar to that made by any arrangements, agreement or document mentioned in any of [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2/a/2023-07-31) to [(f)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2/f/2023-07-31).
- (3) A reference in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2/2023-07-31) to arrangements, an agreement or another document includes a reference to the arrangements, agreement or other document as modified, supplemented or replaced from time to time.
- (4) Regulations under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/1/2023-07-31) may, in particular—
- (g) any other arrangements or agreements made in relation to any territory or territories outside the United Kingdom, or documents related to those arrangements or agreements, which make provision corresponding or similar to that made by any arrangements, agreement or document mentioned in any of [paragraphs (a)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2/a/2023-08-01) to [(f)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2/f/2023-08-01).
- (3) A reference in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2/2023-08-01) to arrangements, an agreement or another document includes a reference to the arrangements, agreement or other document as modified, supplemented or replaced from time to time.
- (4) Regulations under [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/1/2023-08-01) may, in particular—
- (a) require persons to disclose information of a specified description, including information about arrangements that they participated in before (as well as after) the coming into force of this section;
@@ -10267,7 +10267,7 @@
- (e) provide that a reference in the regulations to any international tax compliance arrangements is to be read as a reference to those arrangements as modified, supplemented or replaced from time to time;
(and for the purposes of [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/349/4/2023-07-31) “*specified*” means specified by or under the regulations).
(and for the purposes of [this subsection](https://www.legislation.gov.uk/ukpga/2023/30/section/349/4/2023-08-01) “*specified*” means specified by or under the regulations).
- (5) The regulations may—
@@ -10291,17 +10291,17 @@
- “*participate*”, in relation to arrangements, includes being involved in, or facilitating, the arrangements in any way (for example, by receiving any benefit from them or by designing, marketing or providing services in connection with them, or arranging for others to do so).
- (7) The Treasury may by regulations amend the list of international tax compliance arrangements in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2/2023-07-31) by—
- (7) The Treasury may by regulations amend the list of international tax compliance arrangements in [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2/2023-08-01) by—
- (a) adding an entry for any arrangements, agreement or document, by or under which provision is made about the exchange of information;
- (b) altering or removing an entry.
- (8) Regulations under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2023-07-31) are to be made by statutory instrument.
- (9) A statutory instrument containing (whether alone or with other provision) regulations made under [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/7/2023-07-31) may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the House of Commons.
- (10) A statutory instrument containing any other regulations under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2023-07-31) is subject to annulment in pursuance of a resolution of the House of Commons.
- (8) Regulations under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2023-08-01) are to be made by statutory instrument.
- (9) A statutory instrument containing (whether alone or with other provision) regulations made under [subsection (7)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/7/2023-08-01) may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the House of Commons.
- (10) A statutory instrument containing any other regulations under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2023-08-01) is subject to annulment in pursuance of a resolution of the House of Commons.
- (11) The following provisions are repealed—
@@ -10313,7 +10313,7 @@
- (d) section 129 of FA 2021.
- (12) Regulations made under any provision listed in [subsection (11)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/11/2023-07-31) are to be treated as if they were made under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2023-07-31) (so far as that would not otherwise be the case).
- (12) Regulations made under any provision listed in [subsection (11)](https://www.legislation.gov.uk/ukpga/2023/30/section/349/11/2023-08-01) are to be treated as if they were made under [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/349/2023-08-01) (so far as that would not otherwise be the case).
#### Payment of unclaimed money in court into the Consolidated Fund
@@ -10353,9 +10353,9 @@
- (8) A statutory instrument containing regulations under subsection (7) is subject to annulment in pursuance of a resolution of the House of Commons.
- (9) References in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/351/2023-07-31) to “financial sanctions regulations” are references to regulations made (whether before or after the passing of this Act) under section 1 of SAMLA 2018, so far as they make provision for or in connection with imposing financial sanctions (within the meaning of section 3 of that Act).
- (10) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/351/2023-07-31)—
- (9) References in [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/351/2023-08-01) to “financial sanctions regulations” are references to regulations made (whether before or after the passing of this Act) under section 1 of SAMLA 2018, so far as they make provision for or in connection with imposing financial sanctions (within the meaning of section 3 of that Act).
- (10) In [this section](https://www.legislation.gov.uk/ukpga/2023/30/section/351/2023-08-01)—
- “*designated person*” has the meaning given by section 9 of SAMLA 2018;
@@ -10371,7 +10371,7 @@
##### 352
- (1) Section 12(2) of the Investigatory Powers Act 2016 (restriction of powers to obtain communications data) does not apply to a power falling within [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2/2023-07-31).
- (1) Section 12(2) of the Investigatory Powers Act 2016 (restriction of powers to obtain communications data) does not apply to a power falling within [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2/2023-08-01).
- (2) A power falls within this subsection if it is conferred (whether before, on or after the passing of this Act) by or under—
@@ -10383,23 +10383,23 @@
- (d) any enactment relating to value added tax;
- (e) any enactment, not falling within paragraphs [(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2/a/2023-07-31) to [(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2/d/2023-07-31), that relates to tax.
- (3) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/1/2023-07-31) does not apply in relation to the exercise of such a power by a public authority in the course of a criminal investigation by the authority.
- (e) any enactment, not falling within paragraphs [(a)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2/a/2023-08-01) to [(d)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2/d/2023-08-01), that relates to tax.
- (3) But [subsection (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/1/2023-08-01) does not apply in relation to the exercise of such a power by a public authority in the course of a criminal investigation by the authority.
- (4) In section 12 of the Investigatory Powers Act 2016, after subsection (2) insert—
> (2A) Subsection (2) is subject to [section 352](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/1/2023-07-31) of the Finance (No. 2) Act 2023 (no restriction on tax related powers).
> (2A) Subsection (2) is subject to [section 352](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/1/2023-08-01) of the Finance (No. 2) Act 2023 (no restriction on tax related powers).
- (5) In Schedule 36 to FA 2008 (information and inspection powers), in paragraph 19, omit sub-paragraphs (4) and (5).
- (6) In consequence of the repeal made by [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/5/2023-07-31), omit paragraph 10 of Schedule 2 to the Investigatory Powers Act 2016.
- (7) The modification and amendments made by [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/1/2023-07-31) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/6/2023-07-31) are to be treated as having always had effect.
- (8) Subsections [(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/9/2023-07-31) and [(10)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/10/2023-07-31) apply where—
- (a) before the day on which this Act is passed, a public authority imposed a requirement on a person under a power falling within [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2/2023-07-31), and
- (6) In consequence of the repeal made by [subsection (5)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/5/2023-08-01), omit paragraph 10 of Schedule 2 to the Investigatory Powers Act 2016.
- (7) The modification and amendments made by [subsections (1)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/1/2023-08-01) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/6/2023-08-01) are to be treated as having always had effect.
- (8) Subsections [(9)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/9/2023-08-01) and [(10)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/10/2023-08-01) apply where—
- (a) before the day on which this Act is passed, a public authority imposed a requirement on a person under a power falling within [subsection (2)](https://www.legislation.gov.uk/ukpga/2023/30/section/352/2/2023-08-01), and
- (b) as a result of section 12(2) of the Investigatory Powers Act 2016 the public authority did not, ignoring this section, have the power to impose it.
@@ -10715,7 +10715,7 @@
##### 13
In Part 9A (company tax returns etc: claims for R&D expenditure credits or R&D tax relief), after paragraph 83E (substituted by [paragraph 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/1/paragraph/12/2023-07-31)) insert—
In Part 9A (company tax returns etc: claims for R&D expenditure credits or R&D tax relief), after paragraph 83E (substituted by [paragraph 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/1/paragraph/12/2023-08-01)) insert—
> (83EA)
> (1) A claim to which this Part of this Schedule applies is invalid unless the claimant company has provided information to an officer of Revenue and Customs in accordance with regulations under [sub-paragraph (2)](#p25893) not later than the date on which the claim is made or amended by the company in accordance with paragraph 83E.
@@ -10727,7 +10727,7 @@
##### 14
In Part 9A (claims for R&D expenditure credits or R&D tax relief), after paragraph 83EA (inserted by [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/1/paragraph/13/2023-07-31)) insert—
In Part 9A (claims for R&D expenditure credits or R&D tax relief), after paragraph 83EA (inserted by [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/1/paragraph/13/2023-08-01)) insert—
> (83EB)
> (1) This paragraph applies, in relation to a claim to which this Part of this Schedule applies (the “original claim”), where an officer of Revenue and Customs—
@@ -10829,7 +10829,7 @@
##### 19
The amendment made by [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/1/paragraph/13/2023-07-31) of this Schedule has effect in relation to claims made on or after 1 August 2023.
The amendment made by [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/1/paragraph/13/2023-08-01) of this Schedule has effect in relation to claims made on or after 1 August 2023.
##### 20
@@ -11097,7 +11097,7 @@
- (5) In section 679 (income from which basic amounts are treated as paid)—
- (a) in subsection (3) (as amended by [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/5/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/5/a/2023-07-31)), at the end insert “(subject to [subsection (3A)](#p26890))”;
- (a) in subsection (3) (as amended by [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/5/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/5/a/2023-08-01)), at the end insert “(subject to [subsection (3A)](#p26890))”;
- (b) after that subsection insert—
@@ -11106,7 +11106,7 @@
> (b) other income bearing income tax at 0%,
> payments are to be made from income within [paragraph (a)](#p26893) after income within [paragraph (b)](#p26898).
- (6) In section 679A (income from which sums within section 668(1)(b) are treated as paid) (inserted by [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/2/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/2/3/2023-07-31))—
- (6) In section 679A (income from which sums within section 668(1)(b) are treated as paid) (inserted by [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/2/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/2/3/2023-08-01))—
- (a) in subsection (3), at the end insert “(subject to [subsection (3A)](#p26925))”;
@@ -11155,7 +11155,7 @@
- (5) In section 962 (income from which basic amounts are treated as paid)—
- (a) in subsection (3) (as amended by [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/9/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/9/a/2023-07-31)), at the end insert “(subject to [subsection (3A)](#p27040))”;
- (a) in subsection (3) (as amended by [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/9/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/9/a/2023-08-01)), at the end insert “(subject to [subsection (3A)](#p27040))”;
- (b) after that subsection insert—
@@ -11164,7 +11164,7 @@
> (b) other income bearing income tax at 0%,
> payments are to be made from income within [paragraph (a)](#p26893) after income within [paragraph (b)](#p26898).
- (6) In section 962A (income from which sums within section 951(1)(b) are treated as paid) (inserted by [paragraph 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/7/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/7/3/2023-07-31))—
- (6) In section 962A (income from which sums within section 951(1)(b) are treated as paid) (inserted by [paragraph 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/7/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/7/3/2023-08-01))—
- (a) in subsection (3), at the end insert “(subject to [subsection (3A)](#p27075))”;
@@ -11173,7 +11173,7 @@
> (3A) For the purposes of assumption B, where that income includes—
> (a) income bearing income tax at 0% by virtue of section 963[(1A)](#p26953), and
> (b) other income bearing income tax at 0%,
> sums are to be paid from income within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/12/6/a/2023-07-31) after income within [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/12/6/b/2023-07-31).
> sums are to be paid from income within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/12/6/a/2023-08-01) after income within [paragraph (b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/12/6/b/2023-08-01).
- (7) In section 963 (income treated as bearing income tax)—
@@ -11202,7 +11202,7 @@
- (2) Omit Chapter 6 of Part 9 (trustees’ first slice of trust rate income).
- (3) In consequence of the amendment made by [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/13/2/2023-07-31)—
- (3) In consequence of the amendment made by [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/paragraph/13/2/2023-08-01)—
- (a) in section 2(9)(b) (overview of Act), for “4, 5 and 6” substitute “4 and 5”;
@@ -11228,19 +11228,19 @@
- (1) The amendments made by this Schedule have effect as follows.
- (2) In [Part 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/1/2023-07-31)—
- (a) the amendments made by [Chapter 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/1/chapter/1/2023-07-31) have effect in relation to the tax year 2023-24 and subsequent tax years;
- (b) the amendments made by [Chapter 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/1/chapter/2/2023-07-31) have effect in relation to accounting periods beginning on or after 1 April 2023.
- (3) In [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/2/2023-07-31)—
- (a) the amendments made by [Chapter 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/2/chapter/1/2023-07-31) have effect in relation to the tax year 2024-25 and subsequent tax years;
- (b) the amendments made by [Chapter 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/2/chapter/2/2023-07-31) have effect in relation to accounting periods beginning on or after 1 April 2024;
- (4) The amendments made by [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/3/2023-07-31) have effect in relation to the tax year 2024-25 and subsequent tax years.
- (2) In [Part 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/1/2023-08-01)—
- (a) the amendments made by [Chapter 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/1/chapter/1/2023-08-01) have effect in relation to the tax year 2023-24 and subsequent tax years;
- (b) the amendments made by [Chapter 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/1/chapter/2/2023-08-01) have effect in relation to accounting periods beginning on or after 1 April 2023.
- (3) In [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/2/2023-08-01)—
- (a) the amendments made by [Chapter 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/2/chapter/1/2023-08-01) have effect in relation to the tax year 2024-25 and subsequent tax years;
- (b) the amendments made by [Chapter 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/2/chapter/2/2023-08-01) have effect in relation to accounting periods beginning on or after 1 April 2024;
- (4) The amendments made by [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/2/part/3/2023-08-01) have effect in relation to the tax year 2024-25 and subsequent tax years.
## Schedule 3
@@ -11703,15 +11703,15 @@
##### 30
Except as provided in [paragraphs 31](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/31/2023-07-31) to [35](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/35/2023-07-31), the amendments made by [Parts 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/part/1/2023-07-31) and [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/part/2/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/2023-07-31) have effect for periods of account of worldwide groups that begin on or after 1 April 2023.
Except as provided in [paragraphs 31](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/31/2023-08-01) to [35](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/35/2023-08-01), the amendments made by [Parts 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/part/1/2023-08-01) and [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/part/2/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/2023-08-01) have effect for periods of account of worldwide groups that begin on or after 1 April 2023.
##### 31
The amendments made by [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/5/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/5/1/2023-07-31) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/5/3/2023-07-31) have effect for periods of account of worldwide groups ending on or after 6 April 2020.
The amendments made by [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/5/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/5/1/2023-08-01) and [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/5/3/2023-08-01) have effect for periods of account of worldwide groups ending on or after 6 April 2020.
##### 32
- (1) The amendments made by [paragraph 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/8/2023-07-31) have effect for periods of account of worldwide groups ending on or after 6 April 2020.
- (1) The amendments made by [paragraph 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/8/2023-08-01) have effect for periods of account of worldwide groups ending on or after 6 April 2020.
- (2) Sub-paragraph (3) applies if—
@@ -11721,25 +11721,25 @@
- (ii) before the day on which this Act is passed; and
- (b) any of the figures in the interest restriction return have become incorrect as a result of the amendments made by [paragraph 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/8/2023-07-31) (including as a result of an election made under section 413(7) of TIOPA 2010).
- (b) any of the figures in the interest restriction return have become incorrect as a result of the amendments made by [paragraph 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/8/2023-08-01) (including as a result of an election made under section 413(7) of TIOPA 2010).
- (3) A revised interest restriction return submitted under paragraph 8 of Schedule 7A to TIOPA 2010 has effect (so far as that would not otherwise be the case) if it is received before the end of the period of 3 months beginning with the day on which this Act is passed.
##### 33
The amendments made by [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/9/2023-07-31) have effect for periods of account of worldwide groups in relation to which an election under section 330 of CTA 2009 is made, in respect of a relevant accounting period, on or after the day on which this Act is passed.
The amendments made by [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/9/2023-08-01) have effect for periods of account of worldwide groups in relation to which an election under section 330 of CTA 2009 is made, in respect of a relevant accounting period, on or after the day on which this Act is passed.
##### 34
The amendments made by [paragraphs 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/2/2023-07-31), [14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/14/2023-07-31) to [16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/16/2023-07-31), and [27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/27/2023-07-31), have effect for accounting periods that begin on or after 1 April 2023.
The amendments made by [paragraphs 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/2/2023-08-01), [14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/14/2023-08-01) to [16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/16/2023-08-01), and [27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/27/2023-08-01), have effect for accounting periods that begin on or after 1 April 2023.
##### 35
The amendment made by [paragraph 20](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/20/2023-07-31) has effect in relation to appointments of reporting companies made, and the amendments made by [paragraph 24](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/1/2023-07-31), [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/2/2023-07-31), [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/3/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/3/a/2023-07-31), [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/4/2023-07-31) and (6)(b) have effect in relation to determinations made, on or after the day on which this Act is passed.
The amendment made by [paragraph 20](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/20/2023-08-01) has effect in relation to appointments of reporting companies made, and the amendments made by [paragraph 24](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/1/2023-08-01), [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/2/2023-08-01), [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/3/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/3/a/2023-08-01), [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/24/4/2023-08-01) and (6)(b) have effect in relation to determinations made, on or after the day on which this Act is passed.
##### 36
References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/part/3/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/2023-07-31) to periods of account of worldwide groups have the same meaning as in Part 10 of TIOPA 2010 (see section 480 of that Act).
References in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/part/3/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/2023-08-01) to periods of account of worldwide groups have the same meaning as in Part 10 of TIOPA 2010 (see section 480 of that Act).
## Part 4 — Tax treatment of financing costs and income
@@ -11773,9 +11773,9 @@
- (2) Where the revised statement of allocated exemptions mentioned in sub-paragraph (1)(a) is received by HMRC before the end of the period of 30 days beginning with the day on which this Act comes into force, it is treated for the purposes of this Part (and of the application of Part 7 of TIOPA 2010 for the purposes of this Part) as if it had been received by HMRC by the time specified in section 291(2) of TIOPA 2010.
- (3) If the revised statement of disallowances referred to in [paragraph 37](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/2023-07-31)[(e)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/e/2023-07-31) specifies that no financing expense amounts for the relevant period of account are to be disallowed, the requirement in section 280(4) of TIOPA 2010 does not apply in relation to the statement.
- (4) If the revised statement of allocated exemptions referred to in [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/38/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/38/1/a/2023-07-31) specifies that no financing income amounts for the relevant period of account are to be exempted, the requirement in section 292(4) of TIOPA 2010 does not apply in relation to the statement.
- (3) If the revised statement of disallowances referred to in [paragraph 37](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/2023-08-01)[(e)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/e/2023-08-01) specifies that no financing expense amounts for the relevant period of account are to be disallowed, the requirement in section 280(4) of TIOPA 2010 does not apply in relation to the statement.
- (4) If the revised statement of allocated exemptions referred to in [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/38/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/38/1/a/2023-08-01) specifies that no financing income amounts for the relevant period of account are to be exempted, the requirement in section 292(4) of TIOPA 2010 does not apply in relation to the statement.
##### 39
@@ -11785,11 +11785,11 @@
- (b) the other company is—
- (i) for the purposes of [paragraph 37](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/2023-07-31), a company to which Chapter 3 of Part 7 of TIOPA 2010 applies, or
- (ii) for the purposes of [paragraph 38](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/38/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/38/1/2023-07-31), a company to which Chapter 4 of Part 7 of TIOPA 2010 applies, and
- (c) the notice is given before the end of the period within which the revised statement of disallowances mentioned in [paragraph 37](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/2023-07-31)[(f)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/f/2023-07-31) would be treated, under regulation 13 of the 2009 Regulations, as if it had been received by HMRC by the time specified in section 279(2) of TIOPA 2010.
- (i) for the purposes of [paragraph 37](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/2023-08-01), a company to which Chapter 3 of Part 7 of TIOPA 2010 applies, or
- (ii) for the purposes of [paragraph 38](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/38/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/38/1/2023-08-01), a company to which Chapter 4 of Part 7 of TIOPA 2010 applies, and
- (c) the notice is given before the end of the period within which the revised statement of disallowances mentioned in [paragraph 37](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/2023-08-01)[(f)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/3/paragraph/37/f/2023-08-01) would be treated, under regulation 13 of the 2009 Regulations, as if it had been received by HMRC by the time specified in section 279(2) of TIOPA 2010.
##### 40
@@ -11891,7 +11891,7 @@
##### 2
CTA 2010 is amended in accordance with [paragraphs 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/3/2023-07-31) to [5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/5/2023-07-31).
CTA 2010 is amended in accordance with [paragraphs 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/3/2023-08-01) to [5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/5/2023-08-01).
#### REITs involving single commercial property
@@ -12059,7 +12059,7 @@
.
- (3) The amendments made by [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/8/2023-07-31) are treated as having come into force on 15 March 2023.
- (3) The amendments made by [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/8/2023-08-01) are treated as having come into force on 15 March 2023.
- (4) Those amendments are not to have effect in relation to a securitisation company that was a QAHC immediately before that date for so long as it continuously remains a QAHC.
@@ -12071,7 +12071,7 @@
> (2A) For the purposes of sub-paragraph (1)(b)(i), a beneficial entitlement of T or C held solely through one or more QAHCs is to be treated as held by that person directly.
- (2) The amendment made by [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/9/2023-07-31) is treated as having come into force on 20 July 2022.
- (2) The amendment made by [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/9/2023-08-01) is treated as having come into force on 20 July 2022.
- (3) But the amendment is not to have effect in relation to a QAHC that became a QAHC before that date if the effect of the amendment would, by itself, cause the QAHC to cease to meet the ownership condition on that date, ignoring—
@@ -12109,7 +12109,7 @@
- (c) in sub-paragraph (6), after “collective investment scheme” insert “, or is an AIF that is not a collective investment scheme only by reason of it being a body corporate,”.
- (2) Schedule 2 to FA 2022 has effect, and is to be deemed always to have had effect, with the amendment made by [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/11/2023-07-31).
- (2) Schedule 2 to FA 2022 has effect, and is to be deemed always to have had effect, with the amendment made by [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/4/paragraph/11/2023-08-01).
#### Genuine diversity of ownership
@@ -12435,9 +12435,9 @@
Regulations made under—
- (a) paragraph 21 of Schedule 18 to FA 1998 by virtue of the amendments made by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/5/paragraph/1/2023-07-31) of this Schedule, or
- (b) section 12B of TMA 1970 by virtue of the amendments made by [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/5/paragraph/3/2023-07-31) of this Schedule,
- (a) paragraph 21 of Schedule 18 to FA 1998 by virtue of the amendments made by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/5/paragraph/1/2023-08-01) of this Schedule, or
- (b) section 12B of TMA 1970 by virtue of the amendments made by [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/5/paragraph/3/2023-08-01) of this Schedule,
have effect in relation to such accounting periods or tax years beginning on or after 1 April 2023 as are specified in the regulations.
@@ -12497,7 +12497,7 @@
- (3) A beer-based beverage is “qualifying” if—
- (a) it would, apart from [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/4/3/a/2023-07-31), fall within [paragraph 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/12/2023-07-31) (other fermented products), and
- (a) it would, apart from [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/4/3/a/2023-08-01), fall within [paragraph 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/12/2023-08-01) (other fermented products), and
- (b) it is of an alcoholic strength not exceeding 5.5%.
@@ -12515,21 +12515,21 @@
- (ii) anything, other than a permitted substance, which communicates colour or flavour,
- (c) satisfies the juice content requirements (see [paragraph 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/7/2023-07-31)), and
- (c) satisfies the juice content requirements (see [paragraph 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/7/2023-08-01)), and
- (d) is of an alcoholic strength of less than 8.5%.
##### 6
In [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/5/2023-07-31), “*permitted substance*” means a substance that—
In [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/5/2023-08-01), “*permitted substance*” means a substance that—
- (a) appears to the Commissioners to be necessary for the purposes of producing cider, and
- (b) is specified in a notice published by the Commissioners for the purposes of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-07-31).
- (b) is specified in a notice published by the Commissioners for the purposes of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/2023-08-01).
##### 7
- (1) For the purposes of [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/5/2023-07-31), the juice content requirements are satisfied in relation to a product if—
- (1) For the purposes of [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/5/2023-08-01), the juice content requirements are satisfied in relation to a product if—
- (a) qualifying fruit juice comprises at least 35% of the volume of the pre-fermentation mixture for the product, and
@@ -12551,7 +12551,7 @@
- (4) “*Pre-fermentation mixture*” means the mixture of juice and other ingredients in which the fermentation (from which the cider is obtained) takes place, as that mixture exists immediately before the fermentation process begins.
- (5) If the cider consists of a blend of two or more products, each constituting cider, references in [sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/7/4/2023-07-31) to the pre-fermentation mixture are to the pre-fermentation mixtures for each of those products taken as a whole.
- (5) If the cider consists of a blend of two or more products, each constituting cider, references in [sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/7/4/2023-08-01) to the pre-fermentation mixture are to the pre-fermentation mixtures for each of those products taken as a whole.
##### 8
@@ -12563,13 +12563,13 @@
- (ii) (regardless of the pressure) the bottle has a mushroom-shaped stopper held in place by a tie or fastening;
- (b) if it is not packaged in a closed bottle, has characteristics similar to those of cider which (while packaged in a closed bottle) falls within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8/1/a/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8/1/a/i/2023-07-31).
- (b) if it is not packaged in a closed bottle, has characteristics similar to those of cider which (while packaged in a closed bottle) falls within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8/1/a/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8/1/a/i/2023-08-01).
- (2) Cider is to be regarded as having been rendered sparkling if—
- (a) as a result of aeration, fermentation or any other process, it falls within [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8/1/2023-07-31), or
- (b) (if not previously rendered sparkling under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8/2/a/2023-07-31)) it is transferred into a closed bottle which has, or the stopper of its bottle is exchanged for, a stopper of the kind mentioned in sub-paragraph (1)(a)(ii).
- (a) as a result of aeration, fermentation or any other process, it falls within [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8/1/2023-08-01), or
- (b) (if not previously rendered sparkling under [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8/2/a/2023-08-01)) it is transferred into a closed bottle which has, or the stopper of its bottle is exchanged for, a stopper of the kind mentioned in sub-paragraph (1)(a)(ii).
##### 9
@@ -12615,13 +12615,13 @@
##### 1
A penalty is payable by a person (“*P*”) who contravenes [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-07-31) or [103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/1/2023-07-31).
A penalty is payable by a person (“*P*”) who contravenes [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-08-01) or [103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/1/2023-08-01).
#### Amount of penalty
##### 2
- (1) If the contravention is deliberate and concealed, the amount of the penalty is the maximum amount (see [paragraph 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10/2023-07-31)).
- (1) If the contravention is deliberate and concealed, the amount of the penalty is the maximum amount (see [paragraph 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10/2023-08-01)).
- (2) If the contravention is deliberate but not concealed, the amount of the penalty is 70% of the maximum amount.
@@ -12637,13 +12637,13 @@
##### 3
- (1) [Paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/4/2023-07-31) provides for reductions in penalties under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31) where P discloses a contravention.
- (1) [Paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/4/2023-08-01) provides for reductions in penalties under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01) where P discloses a contravention.
- (2) P discloses a contravention by—
- (a) telling the Commissioners about it,
- (b) giving the Commissioners reasonable help in identifying any other contraventions of [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-07-31) or [103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/1/2023-07-31) of which P is aware, and
- (b) giving the Commissioners reasonable help in identifying any other contraventions of [section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/100/1/2023-08-01) or [103](https://www.legislation.gov.uk/ukpga/2023/30/section/103/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/103/1/2023-08-01) of which P is aware, and
- (c) allowing the Commissioners access to records for the purpose of identifying such contraventions.
@@ -12679,11 +12679,11 @@
##### 5
- (1) If the Commissioners think it right because of special circumstances, they may reduce a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31).
- (2) In [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/5/1/2023-07-31) “*special circumstances*” does not include ability to pay.
- (3) In [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/5/1/2023-07-31) the reference to reducing a penalty includes a reference to—
- (1) If the Commissioners think it right because of special circumstances, they may reduce a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01).
- (2) In [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/5/1/2023-08-01) “*special circumstances*” does not include ability to pay.
- (3) In [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/5/1/2023-08-01) the reference to reducing a penalty includes a reference to—
- (a) staying a penalty, and
@@ -12693,7 +12693,7 @@
##### 6
- (1) Where P becomes liable for a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31), the Commissioners must—
- (1) Where P becomes liable for a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01), the Commissioners must—
- (a) assess the penalty,
@@ -12701,31 +12701,31 @@
- (c) state in the notice the contravention in respect of which the penalty is assessed.
- (2) A penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31) must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.
- (2) A penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01) must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.
- (3) An assessment is to be treated as an amount of duty due from P under this Act and may be recovered accordingly.
- (4) An assessment of a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31) may not be made later than one year after evidence of facts sufficient in the opinion of the Commissioners to indicate the contravention comes to their knowledge.
- (5) Two or more contraventions may be treated by the Commissioners as a single contravention for the purposes of assessing a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31).
- (4) An assessment of a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01) may not be made later than one year after evidence of facts sufficient in the opinion of the Commissioners to indicate the contravention comes to their knowledge.
- (5) Two or more contraventions may be treated by the Commissioners as a single contravention for the purposes of assessing a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01).
#### Reasonable excuse
##### 7
- (1) Liability to a penalty does not arise under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31) in respect of a contravention which is not deliberate if P satisfies the Commissioners or (on an appeal made to the appeal tribunal) the tribunal that there is a reasonable excuse for the contravention.
- (2) For the purposes of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/7/1/2023-07-31), where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the contravention.
- (1) Liability to a penalty does not arise under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01) in respect of a contravention which is not deliberate if P satisfies the Commissioners or (on an appeal made to the appeal tribunal) the tribunal that there is a reasonable excuse for the contravention.
- (2) For the purposes of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/7/1/2023-08-01), where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the contravention.
#### Companies: officer’s liability
##### 8
- (1) Where a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31) is payable by a company in respect of a contravention which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as the Commissioners may specify by written notice to the officer.
- (2) [Sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-07-31) does not allow the Commissioners to recover more than 100% of a penalty.
- (3) In the application of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-07-31) to a body corporate other than a limited liability partnership, “*officer*” means—
- (1) Where a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01) is payable by a company in respect of a contravention which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as the Commissioners may specify by written notice to the officer.
- (2) [Sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-08-01) does not allow the Commissioners to recover more than 100% of a penalty.
- (3) In the application of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-08-01) to a body corporate other than a limited liability partnership, “*officer*” means—
- (a) a director (including a shadow director within the meaning of section 251 of the Companies Act 2006),
@@ -12733,9 +12733,9 @@
- (c) a secretary.
- (4) In the application of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-07-31) to a limited liability partnership, “*officer*” means a member.
- (5) In the application of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-07-31) in any other case, “*officer*” means—
- (4) In the application of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-08-01) to a limited liability partnership, “*officer*” means a member.
- (5) In the application of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-08-01) in any other case, “*officer*” means—
- (a) a director,
@@ -12745,45 +12745,45 @@
- (d) any other person managing or purporting to manage any of the company’s affairs.
- (6) Where the Commissioners have specified a portion of a penalty in a notice given to an officer under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-07-31)—
- (a) [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/5/2023-07-31) applies to the specified portion as to a penalty,
- (6) Where the Commissioners have specified a portion of a penalty in a notice given to an officer under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/1/2023-08-01)—
- (a) [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/5/2023-08-01) applies to the specified portion as to a penalty,
- (b) the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,
- (c) [sub-paragraphs (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/6/3/2023-07-31) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/6/5/2023-07-31) of [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/6/2023-07-31) apply as if the notice were an assessment of a penalty, and
- (d) [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/9/2023-07-31) applies as if the officer were liable to a penalty.
- (7) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/2023-07-31) “*company*” means any body corporate or unincorporated association, but does not include a partnership.
- (c) [sub-paragraphs (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/6/3/2023-08-01) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/6/5/2023-08-01) of [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/6/2023-08-01) apply as if the notice were an assessment of a penalty, and
- (d) [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/9/2023-08-01) applies as if the officer were liable to a penalty.
- (7) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8/2023-08-01) “*company*” means any body corporate or unincorporated association, but does not include a partnership.
#### Double jeopardy
##### 9
P is not liable to a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31) in respect of a contravention in respect of which P has been convicted of an offence.
P is not liable to a penalty under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01) in respect of a contravention in respect of which P has been convicted of an offence.
#### The maximum amount
##### 10
- (1) In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31), “*the maximum amount*” means £10,000.
- (2) If it appears to the Treasury that there has been a change in the value of money since the last relevant date, the Treasury may by regulations substitute for the sum for the time being specified in [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10/1/2023-07-31) such other sum as appears to them to be justified by the change.
- (3) In [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10/2/2023-07-31), “*relevant date*” means—
- (1) In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01), “*the maximum amount*” means £10,000.
- (2) If it appears to the Treasury that there has been a change in the value of money since the last relevant date, the Treasury may by regulations substitute for the sum for the time being specified in [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10/1/2023-08-01) such other sum as appears to them to be justified by the change.
- (3) In [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10/2/2023-08-01), “*relevant date*” means—
- (a) the date on which the Finance (No. 2) Act 2023 is passed, and
- (b) each date on which the power conferred by that sub-paragraph has been exercised.
- (4) Regulations under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10/2023-07-31) do not apply to any contravention which occurred before the date on which they come into force.
- (4) Regulations under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10/2023-08-01) do not apply to any contravention which occurred before the date on which they come into force.
#### Appeal tribunal
##### 11
In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-07-31) “*appeal tribunal*” has the same meaning as in Chapter 2 of Part 1 of the FA 1994.
In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/2023-08-01) “*appeal tribunal*” has the same meaning as in Chapter 2 of Part 1 of the FA 1994.
## Schedule 11
@@ -12791,53 +12791,53 @@
- (1) Section 13A(2) of FA 1994 (meaning of “*relevant decision*”) is amended as follows.
- (2) In paragraph (c), for “section 8, 10, 11 or 36G of the Alcoholic Liquor Duties Act 1979,” substitute “[section 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-07-31), [60](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-07-31), [78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) or [79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-07-31) of [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty),”.
- (2) In paragraph (c), for “section 8, 10, 11 or 36G of the Alcoholic Liquor Duties Act 1979,” substitute “[section 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52/2023-08-01), [60](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-08-01), [78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) or [79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-08-01) of [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty),”.
- (3) In paragraph (ea), for sub-paragraphs (i) and (ii) substitute—
> (i) regulations under [section 102](https://www.legislation.gov.uk/ukpga/2023/30/section/102/2023-07-31) of [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty), or
> (ii) [Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) to that Act;
> (i) regulations under [section 102](https://www.legislation.gov.uk/ukpga/2023/30/section/102/2023-08-01) of [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty), or
> (ii) [Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) to that Act;
.
- (4) In paragraph (f), for “paragraph 4(2)(h) of Schedule 2A to the Alcoholic Liquor Duties Act 1979 (duty stamps)” substitute “[paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4/2/2023-07-31)[(h)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4/2/h/2023-07-31) of [Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) to the Finance (No. 2) Act 2023 (alcohol duty: duty stamps)”.
- (4) In paragraph (f), for “paragraph 4(2)(h) of Schedule 2A to the Alcoholic Liquor Duties Act 1979 (duty stamps)” substitute “[paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4/2/2023-08-01)[(h)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4/2/h/2023-08-01) of [Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) to the Finance (No. 2) Act 2023 (alcohol duty: duty stamps)”.
##### 2
In Schedule 5 to FA 1994 (decisions subject to review and appeal), for paragraph 3 (and the heading immediately preceding it) substitute—
> (3)
> (1) The following decisions under or for the purposes of [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty)—
> (a) any decision as to whether or not any duty is to be remitted or repaid under [section 73](https://www.legislation.gov.uk/ukpga/2023/30/section/73/2023-07-31) (research and experiments) or [74](https://www.legislation.gov.uk/ukpga/2023/30/section/74/2023-07-31) (spoilt alcoholic products) as to the conditions subject to which the duty is to be remitted or repaid;
> (1) The following decisions under or for the purposes of [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty)—
> (a) any decision as to whether or not any duty is to be remitted or repaid under [section 73](https://www.legislation.gov.uk/ukpga/2023/30/section/73/2023-08-01) (research and experiments) or [74](https://www.legislation.gov.uk/ukpga/2023/30/section/74/2023-08-01) (spoilt alcoholic products) as to the conditions subject to which the duty is to be remitted or repaid;
> (b) any decision—
> (i) on a claim under [section 75](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-07-31) for repayment of duty (alcoholic ingredients relief), or
> (i) on a claim under [section 75](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-08-01) for repayment of duty (alcoholic ingredients relief), or
> (ii) as to whether or not to remit duty under that section;
> (c) any decision for the purposes of [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-07-31) (imported medical articles) or [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) (authorised use for certain purposes) as to whether or not to recognise any article as used for medical purposes;
> (d) any decision for the purposes of [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) (authorised use for certain purposes)—
> (c) any decision for the purposes of [section 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76/2023-08-01) (imported medical articles) or [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) (authorised use for certain purposes) as to whether or not to recognise any article as used for medical purposes;
> (d) any decision for the purposes of [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) (authorised use for certain purposes)—
> (i) as to the use to which any article is or is to be put, or as to the purposes for which it is or is to be used,
> (ii) as to whether or not permission or authorisation for any person to receive, or for the delivery of, any spirits without payment of duty is to be granted or withdrawn, or
> (iii) as to the conditions subject to which the permission or authorisation is granted;
> (e) any decision for the purposes of [section 79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-07-31) (imported goods not for human consumption) as to whether or not any goods are for human consumption;
> (f) any decision for the purposes of [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) (approval requirement: producers) or [83](https://www.legislation.gov.uk/ukpga/2023/30/section/83/2023-07-31) (supplementary provision about approvals)—
> (e) any decision for the purposes of [section 79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-08-01) (imported goods not for human consumption) as to whether or not any goods are for human consumption;
> (f) any decision for the purposes of [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) (approval requirement: producers) or [83](https://www.legislation.gov.uk/ukpga/2023/30/section/83/2023-08-01) (supplementary provision about approvals)—
> (i) as to whether or not, and in respect of which alcoholic products, premises or activities, an approval is given,
> (ii) the period for which, or conditions subject to which, an approval is given,
> (iii) as to the revocation or variation of an approval, or
> (iv) as to whether a person is exempt from the approval requirement;
> (g) any decision as to the application of an exemption under [section 86](https://www.legislation.gov.uk/ukpga/2023/30/section/86/2023-07-31) (mixing alcoholic products);
> (h) any decision as to whether or not a licence for the purposes of [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31) (licence to manufacture and deal wholesale in denatured alcohol) is to be granted to a person, or as to the revocation or suspension of a licence for the purposes of that section;
> (i) any decision for the purposes of any provision of [Chapter 7](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/7/2023-07-31) (wholesaling of controlled alcoholic products) as to whether or not, and in which respects, a person is to be, or to continue to be, approved and registered or as to the conditions or restrictions subject to which a person is to be approved and registered;
> (j) any decision for the purposes of [section 111](https://www.legislation.gov.uk/ukpga/2023/30/section/111/2023-07-31) as to whether or not any drawback is to be set against an amount chargeable in respect of alcohol duty or as to the conditions subject to which drawback is set against that amount.
> (g) any decision as to the application of an exemption under [section 86](https://www.legislation.gov.uk/ukpga/2023/30/section/86/2023-08-01) (mixing alcoholic products);
> (h) any decision as to whether or not a licence for the purposes of [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01) (licence to manufacture and deal wholesale in denatured alcohol) is to be granted to a person, or as to the revocation or suspension of a licence for the purposes of that section;
> (i) any decision for the purposes of any provision of [Chapter 7](https://www.legislation.gov.uk/ukpga/2023/30/part/2/chapter/7/2023-08-01) (wholesaling of controlled alcoholic products) as to whether or not, and in which respects, a person is to be, or to continue to be, approved and registered or as to the conditions or restrictions subject to which a person is to be approved and registered;
> (j) any decision for the purposes of [section 111](https://www.legislation.gov.uk/ukpga/2023/30/section/111/2023-08-01) as to whether or not any drawback is to be set against an amount chargeable in respect of alcohol duty or as to the conditions subject to which drawback is set against that amount.
> (2) Any decision which—
> (a) is made under or for the purposes of any regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-07-31) (alcoholic products regulations) of the Finance (No. 2) Act 2023, and
> (a) is made under or for the purposes of any regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-08-01) (alcoholic products regulations) of the Finance (No. 2) Act 2023, and
> (b) is a decision as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, the security.
> (3) Any decision which is made under or for the purposes of any regulations under [section 90](https://www.legislation.gov.uk/ukpga/2023/30/section/90/2023-07-31) (denatured alcohol) or [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-07-31) (regulations relating to denatured alcohol) of the Finance (No. 2) Act 2023 and is a decision—
> (3) Any decision which is made under or for the purposes of any regulations under [section 90](https://www.legislation.gov.uk/ukpga/2023/30/section/90/2023-08-01) (denatured alcohol) or [section 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92/2023-08-01) (regulations relating to denatured alcohol) of the Finance (No. 2) Act 2023 and is a decision—
> (a) as to whether or not any process is to be, or to continue to be, approved for any purposes;
> (b) as to the conditions subject to which the approval is given;
> (c) as to the revocation or variation of an approval;
> (d) as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, the security.
> (4) Any decision which—
> (a) is made under paragraph 1 of Schedule 3 to the Finance Act 2001, and
> (b) relates to [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023.
> (b) relates to [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023.
## Schedule 12
@@ -12845,31 +12845,31 @@
##### 1
- (1) Retail containers of alcoholic products to which [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) applies are to be stamped—
- (1) Retail containers of alcoholic products to which [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) applies are to be stamped—
- (a) in such cases and circumstances, and with a duty stamp of such a type, as may be prescribed; but
- (b) subject to such exceptions as may be prescribed.
- (2) In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) “*retail container*”, in relation to an alcoholic product, means a container—
- (2) In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) “*retail container*”, in relation to an alcoholic product, means a container—
- (a) of a capacity of 35 centilitres or more, and
- (b) in which, or from which, the alcoholic product is intended to be sold by retail.
- (3) [This Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) applies to alcoholic products that are—
- (3) [This Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) applies to alcoholic products that are—
- (a) spirits, wine or other fermented products, and
- (b) of an alcoholic strength of at least 30%.
- (4) For the purposes of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) a retail container is “stamped” if—
- (4) For the purposes of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) a retail container is “stamped” if—
- (a) it carries a type A stamp or a label which incorporates a type B stamp, and
- (b) the stamp or label mentioned in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/4/a/2023-07-31) has been affixed to the container in a way that complies with the requirements of regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31).
- (5) In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) “*duty stamp*” means any of the following—
- (b) the stamp or label mentioned in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/4/a/2023-08-01) has been affixed to the container in a way that complies with the requirements of regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01).
- (5) In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) “*duty stamp*” means any of the following—
- (a) a document (a “type A stamp”) issued by or on behalf of the Commissioners which—
@@ -12883,15 +12883,15 @@
- (ii) indicates that the appropriate duty, or an amount representing some or all of the appropriate duty, has been (or is to be) paid.
- (6) In [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-07-31) “*the appropriate duty*” means the duty chargeable on the quantity and description of the alcoholic product contained, or to be contained, in the retail container to which the stamp, or the label incorporating the stamp, is, or is to be, affixed.
- (6) In [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-08-01) “*the appropriate duty*” means the duty chargeable on the quantity and description of the alcoholic product contained, or to be contained, in the retail container to which the stamp, or the label incorporating the stamp, is, or is to be, affixed.
#### Power to alter alcoholic products, and capacity of containers, to which this Schedule applies
##### 2
- (1) The Treasury may by regulations amend [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2/a/2023-07-31) for the purpose of varying the capacity from time to time specified in that provision.
- (2) The Treasury may by regulations amend [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/3/2023-07-31) so that [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31)—
- (1) The Treasury may by regulations amend [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2/a/2023-08-01) for the purpose of varying the capacity from time to time specified in that provision.
- (2) The Treasury may by regulations amend [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/3/2023-08-01) so that [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01)—
- (a) applies to any description of alcoholic product to which it does not apply, or
@@ -12911,23 +12911,23 @@
- (d) authority to affix a type B label to a retail container of an alcoholic product.
- (2) Regulations under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/1/2023-07-31) may in particular make provision for or in connection with—
- (2) Regulations under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/1/2023-08-01) may in particular make provision for or in connection with—
- (a) requiring a person in prescribed cases or circumstances to pay, or agree to pay, the prescribed amount to the Commissioners or to a person authorised by the Commissioners for this purpose;
- (b) requiring a person in prescribed cases or circumstances to provide to the Commissioners such security as they may require in respect of payment of the appropriate duty.
- (3) An amount prescribed for the purposes of [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/2/a/2023-07-31) must not exceed the aggregate of—
- (3) An amount prescribed for the purposes of [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/2/a/2023-08-01) must not exceed the aggregate of—
- (a) an amount representing the appropriate duty, and
- (b) in the case of a type A stamp, the cost of issuing the stamp.
- (4) Regulations under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/1/2023-07-31) may also in particular make provision for or in connection with requiring or enabling the Commissioners to bear, in prescribed circumstances, in the case of a type B stamp, all or part of so much of the cost of producing the label as is attributable to the incorporation in it of the stamp.
- (4) Regulations under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/1/2023-08-01) may also in particular make provision for or in connection with requiring or enabling the Commissioners to bear, in prescribed circumstances, in the case of a type B stamp, all or part of so much of the cost of producing the label as is attributable to the incorporation in it of the stamp.
- (5) The whole of an amount payable for a duty stamp shall be treated for the purposes of the customs and excise Acts as an amount due by way of excise duty.
- (6) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/2023-07-31) “*the appropriate duty*” means the duty chargeable on the quantity and description of alcoholic product contained, or to be contained, in the retail container to which the stamp, or the label incorporating the stamp, is to be affixed.
- (6) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/2023-08-01) “*the appropriate duty*” means the duty chargeable on the quantity and description of alcoholic product contained, or to be contained, in the retail container to which the stamp, or the label incorporating the stamp, is to be affixed.
#### Regulations
@@ -12939,13 +12939,13 @@
- (a) the times at which a retail container must bear a duty stamp;
- (b) the type of duty stamp (see [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-07-31)) with which a retail container is to be stamped in any particular case or circumstances;
- (b) the type of duty stamp (see [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-08-01)) with which a retail container is to be stamped in any particular case or circumstances;
- (c) the design and appearance of a duty stamp (including the production of a type B label);
- (d) the information that is to appear on a duty stamp;
- (e) the cost of issuing a type A stamp for the purposes of [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/3/b/2023-07-31);
- (e) the cost of issuing a type A stamp for the purposes of [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3/3/b/2023-08-01);
- (f) the procedure for obtaining—
@@ -12961,9 +12961,9 @@
- (g) where on the container a type A stamp, or a type B label, is to be affixed;
- (h) repayment of, or credit for, in prescribed circumstances and subject to such conditions as may be prescribed, all or part of a payment made under or by reason of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) to the Commissioners or to a person authorised by the Commissioners;
- (i) liability to forfeiture in prescribed circumstances of some or all of a payment made, or security provided, under or by reason of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) to the Commissioners or to a person authorised by the Commissioners.
- (h) repayment of, or credit for, in prescribed circumstances and subject to such conditions as may be prescribed, all or part of a payment made under or by reason of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) to the Commissioners or to a person authorised by the Commissioners;
- (i) liability to forfeiture in prescribed circumstances of some or all of a payment made, or security provided, under or by reason of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) to the Commissioners or to a person authorised by the Commissioners.
- (3) The regulations may also, in particular, make provision for or in connection with preventing a type A stamp, or a type B label, from being used by a person other than—
@@ -12977,7 +12977,7 @@
- (b) as to the rights, obligations or liabilities of duty stamps representatives.
- (5) The Commissioners may, with a view to the protection of the revenue, make regulations for securing and collecting duty payable in accordance with [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31).
- (5) The Commissioners may, with a view to the protection of the revenue, make regulations for securing and collecting duty payable in accordance with [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01).
#### Offences of possession, sale etc of unstamped containers
@@ -12989,35 +12989,35 @@
- (b) sell, offer for sale or otherwise deal in,
unstamped retail containers containing alcoholic products to which [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) applies.
- (2) It is a defence for a person charged with an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/5/2023-07-31) to prove that the retail containers in question were not required to be stamped.
- (3) A person who commits an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/5/2023-07-31) is liable—
unstamped retail containers containing alcoholic products to which [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) applies.
- (2) It is a defence for a person charged with an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/5/2023-08-01) to prove that the retail containers in question were not required to be stamped.
- (3) A person who commits an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/5/2023-08-01) is liable—
- (a) on summary conviction in England and Wales, to a fine not exceeding £20,000;
- (b) on summary conviction in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale.
- (4) A retail container in relation to which an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/5/2023-07-31) is committed is liable to forfeiture (together with its contents).
- (4) A retail container in relation to which an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/5/2023-08-01) is committed is liable to forfeiture (together with its contents).
#### Offence of using premises for sale of alcoholic products in or from unstamped containers
##### 6
- (1) It is an offence for a manager of premises to cause or permit the premises to be used for the sale of alcoholic products, to which [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) applies, in or from an unstamped retail container.
- (1) It is an offence for a manager of premises to cause or permit the premises to be used for the sale of alcoholic products, to which [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) applies, in or from an unstamped retail container.
- (2) It is a defence for a person charged with an offence under this section to prove that the retail container in question was not required to be stamped.
- (3) A person who commits an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/6/2023-07-31) is liable—
- (3) A person who commits an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/6/2023-08-01) is liable—
- (a) on summary conviction in England and Wales, to a fine not exceeding £20,000;
- (b) on summary conviction in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale.
- (4) Where an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/6/2023-07-31) is committed, all unstamped retail containers of alcoholic products on the premises at the time of the offence are liable to forfeiture (together with their contents).
- (5) For the purposes of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31), a person is a “manager” of premises if the person—
- (4) Where an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/6/2023-08-01) is committed, all unstamped retail containers of alcoholic products on the premises at the time of the offence are liable to forfeiture (together with their contents).
- (5) For the purposes of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01), a person is a “manager” of premises if the person—
- (a) is entitled to control their use,
@@ -13029,7 +13029,7 @@
##### 7
- (1) A court by or before which a person is convicted of an offence under [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/6/2023-07-31) may make an order prohibiting the use of the premises, in respect of which the offence was committed, for the sale of alcoholic products during a period specified in the order.
- (1) A court by or before which a person is convicted of an offence under [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/6/2023-08-01) may make an order prohibiting the use of the premises, in respect of which the offence was committed, for the sale of alcoholic products during a period specified in the order.
- (2) The period—
@@ -13037,9 +13037,9 @@
- (b) may not exceed 6 months.
- (3) It is an offence for a manager of premises to cause or permit the premises to be used in breach of an order under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/7/2023-07-31).
- (4) A person who commits an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/7/2023-07-31) is liable—
- (3) It is an offence for a manager of premises to cause or permit the premises to be used in breach of an order under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/7/2023-08-01).
- (4) A person who commits an offence under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/7/2023-08-01) is liable—
- (a) on summary conviction in England and Wales, to a fine not exceeding £20,000;
@@ -13049,7 +13049,7 @@
##### 8
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/8/2023-07-31) applies where a person, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31)—
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/8/2023-08-01) applies where a person, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01)—
- (a) alters a type A stamp after it has been issued, or
@@ -13063,7 +13063,7 @@
##### 9
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/9/2023-07-31) applies where a person affixes to a retail container that is required to be stamped any of the items mentioned in [sub-paragraphs (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/9/2/2023-07-31) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/9/5/2023-07-31).
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/9/2023-08-01) applies where a person affixes to a retail container that is required to be stamped any of the items mentioned in [sub-paragraphs (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/9/2/2023-08-01) to [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/9/5/2023-08-01).
- (2) The first is—
@@ -13071,13 +13071,13 @@
- (b) a label incorporating a type B stamp,
if the stamp is not a correct stamp for that container in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31).
if the stamp is not a correct stamp for that container in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01).
- (3) The second is—
- (a) a type A stamp that has been altered, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31), after it has been issued, or
- (b) a label incorporating a type B stamp if the stamp has been altered, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31), after the label has been produced.
- (a) a type A stamp that has been altered, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01), after it has been issued, or
- (b) a label incorporating a type B stamp if the stamp has been altered, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01), after the label has been produced.
- (4) The third is an item that purports to be (but is not)—
@@ -13091,7 +13091,7 @@
- (b) a type B stamp incorporated in a label affixed to the container,
except where the label or other item is so affixed in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31).
except where the label or other item is so affixed in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01).
- (6) The person’s conduct attracts a penalty under section 9 of FA 1994 (civil penalties).
@@ -13101,13 +13101,13 @@
##### 10
- (1) If a person fails to comply with a requirement imposed by or under regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31)—
- (1) If a person fails to comply with a requirement imposed by or under regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01)—
- (a) the person’s conduct attracts a penalty under section 9 of FA 1994;
- (b) any article in respect of which the person fails to comply with the requirement is liable to forfeiture (including, in the case of a container, its contents).
- (2) Regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) may make provision as to the amount by reference to which the penalty under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/10/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/10/1/a/2023-07-31) is to be calculated.
- (2) Regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) may make provision as to the amount by reference to which the penalty under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/10/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/10/1/a/2023-08-01) is to be calculated.
#### Forfeiture of forged, altered or stolen duty stamps
@@ -13123,9 +13123,9 @@
- (3) The second is—
- (a) a type A stamp that has been altered, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31), after it has been issued, or
- (b) a label incorporating a type B stamp if the stamp has been altered, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31), after the label has been produced.
- (a) a type A stamp that has been altered, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01), after it has been issued, or
- (b) a label incorporating a type B stamp if the stamp has been altered, otherwise than in accordance with regulations under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01), after the label has been produced.
- (4) The third is—
@@ -13139,19 +13139,19 @@
##### 12
In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31)—
- “*duty stamp*” has the meaning given by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-07-31);
In [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01)—
- “*duty stamp*” has the meaning given by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-08-01);
- “*prescribed*” means prescribed in regulations made by the Commissioners;
- “*retail container*” has the meaning given by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2/2023-07-31);
- “*stamped*” and “unstamped” are to be read in accordance with [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/4/2023-07-31);
- “*type A stamp*” has the meaning given by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/a/2023-07-31);
- “*type B stamp*” has the meaning given by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/b/2023-07-31).
- “*retail container*” has the meaning given by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2/2023-08-01);
- “*stamped*” and “unstamped” are to be read in accordance with [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/4/2023-08-01);
- “*type A stamp*” has the meaning given by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/a/2023-08-01);
- “*type B stamp*” has the meaning given by [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1/5/b/2023-08-01).
## Schedule 13
@@ -13161,7 +13161,7 @@
##### 1
CEMA 1979 is amended in accordance with [paragraphs 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/2/2023-07-31) to 5.
CEMA 1979 is amended in accordance with [paragraphs 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/2/2023-08-01) to 5.
##### 2
@@ -13169,13 +13169,13 @@
- (2) In subsection (1), in the definition of “the Customs and Excise Acts 1979”, after “the Tobacco Products Duty Act 1979” insert—
> and references (however expressed) to the Customs and Excise Acts 1979, or to the group of Acts included in the Customs and Excise Acts 1979, include references to [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty);
> and references (however expressed) to the Customs and Excise Acts 1979, or to the group of Acts included in the Customs and Excise Acts 1979, include references to [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty);
- (3) In subsection (3), omit “Alcoholic Liquor Duties Act 1979” and the list of expressions relating to that Act.
- (4) After subsection (3) insert—
> (3ZA) Any expression used in this Act or in any instrument made under this Act to which a meaning is given by [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty) has, except where the context otherwise requires, the same meaning in this Act or any such instrument as in that Part; and for ease of reference the following is a list of the expressions concerned—
> (3ZA) Any expression used in this Act or in any instrument made under this Act to which a meaning is given by [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty) has, except where the context otherwise requires, the same meaning in this Act or any such instrument as in that Part; and for ease of reference the following is a list of the expressions concerned—
> - “*alcoholic product*”
> - “*beer*”
> - “*cider*”
@@ -13208,7 +13208,7 @@
##### 6
In section 18 of the Customs and Excise Duties (General Reliefs) Act 1979 (interpretation) in subsection (2), for “Alcoholic Liquor Duties Act 1979” substitute “[Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023”.
In section 18 of the Customs and Excise Duties (General Reliefs) Act 1979 (interpretation) in subsection (2), for “Alcoholic Liquor Duties Act 1979” substitute “[Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023”.
#### Excise Duties (Surcharges or Rebates) Act 1979
@@ -13224,17 +13224,17 @@
##### 8
FA 1994 is amended in accordance with [paragraphs 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/9/2023-07-31) to [14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/14/2023-07-31).
FA 1994 is amended in accordance with [paragraphs 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/9/2023-08-01) to [14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/14/2023-08-01).
##### 9
In section 12 (assessments to excise duty), in subsection (2)(ca), for “Schedule 2A to the Alcoholic Liquor Duties Act 1979” substitute “[Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) to the Finance (No. 2) Act 2023”.
In section 12 (assessments to excise duty), in subsection (2)(ca), for “Schedule 2A to the Alcoholic Liquor Duties Act 1979” substitute “[Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) to the Finance (No. 2) Act 2023”.
##### 10
In section 12A (other assessments relating to excise duty matters), in subsection (3), for paragraph (bb) substitute—
> (bb) [section 60](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-07-31), [78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) or [79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-07-31) of the Finance (No. 2) Act 2023,
> (bb) [section 60](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-08-01), [78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) or [79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-08-01) of the Finance (No. 2) Act 2023,
.
@@ -13244,20 +13244,20 @@
- (2) In subsection (2), for paragraphs (ea) and (eb) substitute—
> (ea) in the case of an assessment under [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) of the Finance (No. 2) Act 2023, the time of delivery from the relevant premises (as defined in that section);
> (eb) in the case of an assessment under [section 79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-07-31) of that Act, the time of importation;
> (ea) in the case of an assessment under [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) of the Finance (No. 2) Act 2023, the time of delivery from the relevant premises (as defined in that section);
> (eb) in the case of an assessment under [section 79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-08-01) of that Act, the time of importation;
.
- (3) In subsection (2)(ec), for “section 36G of that Act” substitute “[section 60](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-07-31) of that Act”.
- (3) In subsection (2)(ec), for “section 36G of that Act” substitute “[section 60](https://www.legislation.gov.uk/ukpga/2023/30/section/60/2023-08-01) of that Act”.
##### 12
In section 16 (appeals to a tribunal), in subsection (3A), for “section 8, 10 or 11 of the Alcoholic Liquor Duties Act 1979” substitute “[section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) or [79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty: certain reliefs or exemptions for spirits)”.
In section 16 (appeals to a tribunal), in subsection (3A), for “section 8, 10 or 11 of the Alcoholic Liquor Duties Act 1979” substitute “[section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) or [79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty: certain reliefs or exemptions for spirits)”.
##### 13
In section 16A (temporary approvals etc. pending review or appeal), in subsection (2)(c) for “section 88C ALDA 1979” substitute “[section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-07-31) of the Finance (No. 2) Act 2023”.
In section 16A (temporary approvals etc. pending review or appeal), in subsection (2)(c) for “section 88C ALDA 1979” substitute “[section 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100/2023-08-01) of the Finance (No. 2) Act 2023”.
##### 14
@@ -13273,9 +13273,9 @@
- (1) In Part 2 of Schedule 8 to VATA 1994 (zero-rating: groups), Group 1 (food) is amended as follows.
- (2) In excepted item 3, for the words from “any duty” to “made-wine” substitute “alcohol duty under [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023”.
- (3) In excepted item 7, in paragraph (c), for “made-wine” substitute “other fermented products (as defined in [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023)”.
- (2) In excepted item 3, for the words from “any duty” to “made-wine” substitute “alcohol duty under [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023”.
- (3) In excepted item 7, in paragraph (c), for “made-wine” substitute “other fermented products (as defined in [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023)”.
#### FA 2001
@@ -13283,7 +13283,7 @@
In paragraph 1(2) of Schedule 3 to FA 2001 (excise duty: payments by the Commissioners in case of error or delay)—
- (a) in paragraph (a), for “section 8(1) or 10(1) of the Alcoholic Liquor Duties Act 1979” substitute “[section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty: authorised use for certain purposes)”;
- (a) in paragraph (a), for “section 8(1) or 10(1) of the Alcoholic Liquor Duties Act 1979” substitute “[section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty: authorised use for certain purposes)”;
- (b) omit paragraph (b).
@@ -13293,7 +13293,7 @@
In Schedule 24 to FA 2007 (penalties for errors), in the Table in paragraph 1, for the entry relating to alcoholic liquor duties and statements or declarations in connection with a claim for repayment of duty under section 4(4) of FA 1995 substitute—
| Alcohol duty | Statement or declaration in connection with a claim for repayment of duty under [section 75](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-07-31) of F(No. 2)A 2023. |
| Alcohol duty | Statement or declaration in connection with a claim for repayment of duty under [section 75](https://www.legislation.gov.uk/ukpga/2023/30/section/75/2023-08-01) of F(No. 2)A 2023. |
| --- | --- |
#### FA 2008
@@ -13304,16 +13304,16 @@
- (2) In the Table in paragraph 1, for the entry relating to alcohol liquor duties and the obligation to be authorised and registered to obtain and use duty stamps under regulations under ALDA 1979 substitute—
| Alcohol duty | Obligations under [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-07-31) of F(No. 2)A 2023 (licence to manufacture and deal wholesale in denatured alcohol). |
| Alcohol duty | Obligations under [section 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91/2023-08-01) of F(No. 2)A 2023 (licence to manufacture and deal wholesale in denatured alcohol). |
| --- | --- |
| Alcohol duty | Obligation to be authorised and registered to obtain and use duty stamps under regulations under [paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4/2023-07-31) of [Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-07-31) to F(No. 2)A 2023 (duty stamps). |
| Alcohol duty | Obligation to be authorised and registered to obtain and use duty stamps under regulations under [paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4/2023-08-01) of [Schedule 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/2023-08-01) to F(No. 2)A 2023 (duty stamps). |
- (3) In the Table in paragraph 3, for the three entries relating to ALDA 1979 substitute—
| Part 2 of F(No. 2)A 2023 (alcohol duty), [section 53](https://www.legislation.gov.uk/ukpga/2023/30/section/53/2023-07-31)(2) | Unauthorised repackaging of qualifying draught products. |
| Part 2 of F(No. 2)A 2023 (alcohol duty), [section 53](https://www.legislation.gov.uk/ukpga/2023/30/section/53/2023-08-01)(2) | Unauthorised repackaging of qualifying draught products. |
| --- | --- |
| Part 2 of F(No. 2)A 2023 (alcohol duty), [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-07-31)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/78/8/2023-07-31) | Spirits: authorised use for certain purposes. |
| Part 2 of F(No. 2)A 2023 (alcohol duty), [section 79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2/2023-07-31) | Spirits: imported goods not for human consumption. |
| Part 2 of F(No. 2)A 2023 (alcohol duty), [section 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78/2023-08-01)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/78/8/2023-08-01) | Spirits: authorised use for certain purposes. |
| Part 2 of F(No. 2)A 2023 (alcohol duty), [section 79](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/79/2/2023-08-01) | Spirits: imported goods not for human consumption. |
#### TCTA 2018
@@ -13323,13 +13323,13 @@
- (2) In section 49 (sections 44 to 48: interpretation), in the definition of “excise duty”, for paragraph (a) substitute—
> (a) [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty),
> (a) [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty),
.
- (3) In section 53 (meaning of “*excise duty*”), for paragraph (a) substitute—
> (a) [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-07-31) of the Finance (No. 2) Act 2023 (alcohol duty),
> (a) [Part 2](https://www.legislation.gov.uk/ukpga/2023/30/part/2/2023-08-01) of the Finance (No. 2) Act 2023 (alcohol duty),
.
@@ -13349,7 +13349,7 @@
##### 21
CEMA 1979 is amended in accordance with [paragraphs 22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/22/2023-07-31) to 27.
CEMA 1979 is amended in accordance with [paragraphs 22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/22/2023-08-01) to 27.
##### 22
@@ -13383,7 +13383,7 @@
In section 136 (offences in connection with claims for drawback etc), in subsection (5), for paragraph (b) substitute—
> (b) [section 74](https://www.legislation.gov.uk/ukpga/2023/30/section/74/2023-07-31) of the Finance (No. 2) Act 2023 (remission or repayment of duty on spoilt alcoholic products).
> (b) [section 74](https://www.legislation.gov.uk/ukpga/2023/30/section/74/2023-08-01) of the Finance (No. 2) Act 2023 (remission or repayment of duty on spoilt alcoholic products).
##### 26
@@ -13405,7 +13405,7 @@
In section 16A of FA 1994 (temporary approvals etc. pending review or appeal), at the end of subsection (2) insert—
> (g) approved under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-07-31) of the Finance (No. 2) Act 2023 (approval to produce alcoholic products).
> (g) approved under [section 82](https://www.legislation.gov.uk/ukpga/2023/30/section/82/2023-08-01) of the Finance (No. 2) Act 2023 (approval to produce alcoholic products).
#### FA 2007
@@ -13417,7 +13417,7 @@
- (3) After the entry relating to alcohol duty (inserted by paragraph 17 of this Schedule) insert—
| Alcohol duty | Return under regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-07-31) of F(No. 2)A 2023. |
| Alcohol duty | Return under regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-08-01) of F(No. 2)A 2023. |
| --- | --- |
#### FA 2008
@@ -13428,7 +13428,7 @@
- (2) After the entry relating to air passenger duty insert—
| Alcohol duty | Obligations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-07-31) of F(No. 2)A 2023 (approval requirement: producers). |
| Alcohol duty | Obligations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-08-01) of F(No. 2)A 2023 (approval requirement: producers). |
| --- | --- |
- (3) Omit—
@@ -13447,7 +13447,7 @@
- (1) In Schedule 55 (penalty for failure to make returns etc), in the Table in paragraph 1, for item 18 substitute—
| 18 | Alcohol duty | Return under regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-07-31) of F(No.2)A 2023 |
| 18 | Alcohol duty | Return under regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-08-01) of F(No.2)A 2023 |
| --- | --- | --- |
.
@@ -13458,7 +13458,7 @@
- (1) In Schedule 56 (penalty for failure to make payments on time), in the Table in paragraph 1, for item 11E substitute—
| 11E | Alcohol duty | Amount payable under regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-07-31) of F(No. 2)A 2023 (except an amount falling within item 17A, 23 or 24) | The date determined by or under regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-07-31) of F(No. 2)A 2023 as the date by which the amount must be paid |
| 11E | Alcohol duty | Amount payable under regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-08-01) of F(No. 2)A 2023 (except an amount falling within item 17A, 23 or 24) | The date determined by or under regulations under [section 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88/2023-08-01) of F(No. 2)A 2023 as the date by which the amount must be paid |
| --- | --- | --- | --- |
.
@@ -13473,7 +13473,7 @@
- (1) The Commissioners for His Majesty’s Revenue and Customs are responsible for the collection and management of multinational top-up tax.
- (2) [This Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)—
- (2) [This Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)—
- (a) contains provision to enable HMRC to determine when a person is chargeable to multinational top-up tax for an accounting period;
@@ -13485,31 +13485,31 @@
- (e) makes consequential and other amendments to other enactments.
- (3) [This Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) makes provision about a “filing member” of a multinational group (see Part [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/2/2023-07-31)) and contains provision requiring such a member to—
- (a) register with HMRC (see Part [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-07-31));
- (b) submit an information return to HMRC (see Part [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/4/2023-07-31));
- (c) submit a self-assessment return to HMRC (see Part [5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/5/2023-07-31));
- (d) keep and preserve records (see Part [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/9/2023-07-31)).
- (4) [Part 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/10/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) makes provision for when and how payment of multinational top-up tax payable is to be made.
- (5) [This Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) makes provision for—
- (a) penalties (see Part [11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/11/2023-07-31));
- (b) appeals and claims for repayment of overpaid tax (see Part [12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-07-31)).
- (3) [This Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) makes provision about a “filing member” of a multinational group (see Part [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/2/2023-08-01)) and contains provision requiring such a member to—
- (a) register with HMRC (see Part [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-08-01));
- (b) submit an information return to HMRC (see Part [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/4/2023-08-01));
- (c) submit a self-assessment return to HMRC (see Part [5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/5/2023-08-01));
- (d) keep and preserve records (see Part [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/9/2023-08-01)).
- (4) [Part 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/10/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) makes provision for when and how payment of multinational top-up tax payable is to be made.
- (5) [This Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) makes provision for—
- (a) penalties (see Part [11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/11/2023-08-01));
- (b) appeals and claims for repayment of overpaid tax (see Part [12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-08-01)).
## Part 2 — Meaning of “filing member”
##### 2
- (1) The filing member of a multinational group is the ultimate parent of that group, unless a nomination under sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-07-31) is in force.
- (2) The nomination referred to in [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/1/2023-07-31) is a nomination by the ultimate parent of the group that another person should act as the filing member.
- (1) The filing member of a multinational group is the ultimate parent of that group, unless a nomination under sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-08-01) is in force.
- (2) The nomination referred to in [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/1/2023-08-01) is a nomination by the ultimate parent of the group that another person should act as the filing member.
- (3) The ultimate parent may only nominate a person if—
@@ -13517,17 +13517,17 @@
- (b) the person is a company.
- (4) If the ultimate parent nominates a person under sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-07-31), they must—
- (a) nominate the same person as the filing member for the purposes of [Schedule 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/2023-07-31);
- (b) if the nomination ceases to be in force, revoke the nomination referred to in paragraph [(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/4/a/2023-07-31);
- (c) if the nomination referred to in paragraph [(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/4/a/2023-07-31) ceases to be in force, revoke the nomination.
- (5) The ultimate parent must provide the person nominated with everything the person may reasonably require in order to comply with the obligations of a filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31).
- (6) While a nomination under [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-07-31) is in force, the filing member of a multinational group is the person nominated.
- (4) If the ultimate parent nominates a person under sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-08-01), they must—
- (a) nominate the same person as the filing member for the purposes of [Schedule 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/2023-08-01);
- (b) if the nomination ceases to be in force, revoke the nomination referred to in paragraph [(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/4/a/2023-08-01);
- (c) if the nomination referred to in paragraph [(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/4/a/2023-08-01) ceases to be in force, revoke the nomination.
- (5) The ultimate parent must provide the person nominated with everything the person may reasonably require in order to comply with the obligations of a filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01).
- (6) While a nomination under [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-08-01) is in force, the filing member of a multinational group is the person nominated.
- (7) A nomination is in force from the time it is made until any of the following events occurs—
@@ -13543,9 +13543,9 @@
- (8) An officer of Revenue and Customs may revoke a nomination if the officer considers that—
- (a) the ultimate parent is not complying with its obligation under sub-paragraph [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/5/2023-07-31), or
- (b) the person nominated is not complying with the obligations of a filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31).
- (a) the ultimate parent is not complying with its obligation under sub-paragraph [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/5/2023-08-01), or
- (b) the person nominated is not complying with the obligations of a filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01).
- (9) An officer of Revenue and Customs revokes a nomination by notifying the ultimate parent and the nominated person of the revocation.
@@ -13553,21 +13553,21 @@
- (11) Any nomination, or revocation of a nomination, must be in writing.
- (12) [Paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/3/2023-07-31) makes provision for circumstances in which the ultimate parent is the filing entity but is not a company.
- (13) [Paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/4/2023-07-31) makes specific provision for a multinational group that is part of a multi-parent group.
- (14) [Paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2023-07-31) makes provision for the effect of the filing member of a multinational group changing.
- (12) [Paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/3/2023-08-01) makes provision for circumstances in which the ultimate parent is the filing entity but is not a company.
- (13) [Paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/4/2023-08-01) makes specific provision for a multinational group that is part of a multi-parent group.
- (14) [Paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2023-08-01) makes provision for the effect of the filing member of a multinational group changing.
##### 3
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/3/2023-07-31) applies where—
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/3/2023-08-01) applies where—
- (a) the filing member of a multinational group is its ultimate parent, and
- (b) the ultimate parent is not a company.
- (2) The obligations of the filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) may be met by—
- (2) The obligations of the filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) may be met by—
- (a) in the case of a partnership other than a limited partnership or a limited liability partnership, any partner;
@@ -13579,39 +13579,39 @@
- (e) in the case of any other arrangement, any person responsible for preparing the separate financial accounts.
- (3) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/3/2023-07-31), “partnership”, “limited partnership”, “limited liability partnership” and “trust” mean a partnership, limited partnership, limited liability partnership or trust (as the case may be) established under the law of a part of the United Kingdom, or an equivalent entity established under the law of a different country or territory.
- (3) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/3/2023-08-01), “partnership”, “limited partnership”, “limited liability partnership” and “trust” mean a partnership, limited partnership, limited liability partnership or trust (as the case may be) established under the law of a part of the United Kingdom, or an equivalent entity established under the law of a different country or territory.
##### 4
- (1) The obligations of a filing member of a multinational group that is part of a multi-parent group may be met by the filing member of any of the groups that are part of that multi-parent group, subject to [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/4/2/2023-07-31).
- (2) The obligations of the filing member may not be met by a person nominated under [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-07-31) unless the ultimate parent of each group forming the multi-parent group has authorised the nomination.
- (1) The obligations of a filing member of a multinational group that is part of a multi-parent group may be met by the filing member of any of the groups that are part of that multi-parent group, subject to [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/4/2/2023-08-01).
- (2) The obligations of the filing member may not be met by a person nominated under [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2/2023-08-01) unless the ultimate parent of each group forming the multi-parent group has authorised the nomination.
- (3) Any authorisation must be in writing.
##### 5
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2023-07-31) applies if at any time (“*the relevant time*”) a person (“the new filing member”) becomes the filing member of a multinational group in place of another person (“the old filing member”).
- (2) The obligations and liabilities of the new filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) include any obligations and liabilities the old filing member had under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31).
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2023-08-01) applies if at any time (“*the relevant time*”) a person (“the new filing member”) becomes the filing member of a multinational group in place of another person (“the old filing member”).
- (2) The obligations and liabilities of the new filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) include any obligations and liabilities the old filing member had under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01).
- (3) Anything done as the filing member of the group by or in relation to the old filing member, before the relevant time, is treated as having been done by or in relation to the new filing member.
- (4) Accordingly, a penalty may be imposed on the new filing member in respect of anything done before the relevant time if, at that time, a penalty could have been imposed on the old filing member in respect of the thing done.
- (5) Anything done by HMRC in relation to the old filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31), before the end of the day the change is notified, is treated for all purposes under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) as done in relation to the new filing member.
- (6) Anything that, at any time during the period beginning with the relevant time and ending with the day the change is notified, is in the process of being done under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) in relation to the old filing member may be continued in relation to the new filing member.
- (7) Accordingly, any reference in an enactment or other instrument to the filing member of the group is to be read, so far as necessary for the purposes of giving effect to any of [sub-paragraphs (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2/2023-07-31) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/6/2023-07-31), as being or including a reference to the new filing member.
- (8) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2023-07-31)—
- (5) Anything done by HMRC in relation to the old filing member under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01), before the end of the day the change is notified, is treated for all purposes under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) as done in relation to the new filing member.
- (6) Anything that, at any time during the period beginning with the relevant time and ending with the day the change is notified, is in the process of being done under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) in relation to the old filing member may be continued in relation to the new filing member.
- (7) Accordingly, any reference in an enactment or other instrument to the filing member of the group is to be read, so far as necessary for the purposes of giving effect to any of [sub-paragraphs (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2/2023-08-01) to [(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/6/2023-08-01), as being or including a reference to the new filing member.
- (8) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2023-08-01)—
- (a) any reference to an act includes an omission;
- (b) any reference to the day the change is notified is to the day on which an officer of Revenue and Customs receives notification that the new filing member has become the filing member of the group.
- (9) Nothing in [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2023-07-31)—
- (9) Nothing in [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/5/2023-08-01)—
- (a) prevents HMRC or anyone else, after the relevant time, from imposing a penalty, exercising any other power, or doing anything else, in relation to the old filing member in respect of anything done before the relevant time, or
@@ -13623,7 +13623,7 @@
- (1) The filing member of a multinational group must register with HMRC if the group becomes a qualifying multinational group.
- (2) For the purposes of sub-paragraph [(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/1/2023-07-31), a multinational group becomes a qualifying multinational group on the first day of the first accounting period it is a qualifying multinational group (the “trigger day”).
- (2) For the purposes of sub-paragraph [(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/1/2023-08-01), a multinational group becomes a qualifying multinational group on the first day of the first accounting period it is a qualifying multinational group (the “trigger day”).
- (3) A filing member registers with HMRC by providing specified information to HMRC.
@@ -13649,17 +13649,17 @@
- (a) the filing member of the group has registered under this paragraph, and
- (b) a notice of de-registration is not in force in relation to the registration (see paragraph [7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/7/2023-07-31)).
- (9) [Paragraphs 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/8/2023-07-31) and [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/9/2023-07-31) provide further notification requirements in relation to a registered group.
- (b) a notice of de-registration is not in force in relation to the registration (see paragraph [7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/7/2023-08-01)).
- (9) [Paragraphs 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/8/2023-08-01) and [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/9/2023-08-01) provide further notification requirements in relation to a registered group.
##### 7
- (1) This paragraph applies where the filing member of a multinational group has registered under paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-07-31).
- (1) This paragraph applies where the filing member of a multinational group has registered under paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-08-01).
- (2) An officer of Revenue and Customs may issue the filing member with a notice of de-registration in relation to the registration.
- (3) The effect of an officer issuing a notice of de-registration is that, beginning with the effective date, the registration to which the notice relates is not to be treated as a registration under paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-07-31).
- (3) The effect of an officer issuing a notice of de-registration is that, beginning with the effective date, the registration to which the notice relates is not to be treated as a registration under paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-08-01).
- (4) “The effective date” is a date specified in or determined by reference to the notice as the date on which the notice takes effect.
@@ -13673,21 +13673,21 @@
##### 8
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/8/2023-07-31) applies where the filing member of a registered group changes.
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/8/2023-08-01) applies where the filing member of a registered group changes.
- (2) The new filing member must notify HMRC of the change before the end of the period of 6 months beginning with the day the change occurs.
- (3) But, if the change occurs before the end of the period referred to in paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/6/2023-07-31), the new filing member may notify HMRC of the change at any time before the end of that period even if later than the end of the period in sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/8/2/2023-07-31).
- (3) But, if the change occurs before the end of the period referred to in paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/6/2023-08-01), the new filing member may notify HMRC of the change at any time before the end of that period even if later than the end of the period in sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/8/2/2023-08-01).
- (4) The notification must be given in the way specified in a notice published by HMRC.
##### 9
- (1) The filing member of a registered group must notify HMRC of any other change to the information provided under [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-07-31).
- (1) The filing member of a registered group must notify HMRC of any other change to the information provided under [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-08-01).
- (2) The notification must be given before the end of the period of 6 months beginning with the day on which the change occurs.
- (3) But, if the change occurs before the end of the period referred to in paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/6/2023-07-31), the filing member may notify HMRC of the change at any time before the end of that period even if later than the end of the period in sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/9/2/2023-07-31).
- (3) But, if the change occurs before the end of the period referred to in paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/6/2023-08-01), the filing member may notify HMRC of the change at any time before the end of that period even if later than the end of the period in sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/9/2/2023-08-01).
- (4) The notification must be given in the way specified in a notice published by HMRC.
@@ -13695,7 +13695,7 @@
##### 10
- (1) The filing member of a registered group must submit an information return to HMRC for each accounting period in which the group is a qualifying multinational group, unless sub-paragraph [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/4/2023-07-31) applies.
- (1) The filing member of a registered group must submit an information return to HMRC for each accounting period in which the group is a qualifying multinational group, unless sub-paragraph [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/4/2023-08-01) applies.
- (2) An “information return” is a return containing the following information—
@@ -13713,7 +13713,7 @@
- (5) A “qualifying authority” is an authority outside the United Kingdom with which HMRC has an agreement under which the authority will share the information contained in information returns submitted to that authority with HMRC.
- (6) If [sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/4/2023-07-31) applies, the filing member must notify HMRC (an “overseas return notification”).
- (6) If [sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/4/2023-08-01) applies, the filing member must notify HMRC (an “overseas return notification”).
- (7) An information return or overseas return notification must be submitted in the way specified in a notice published by HMRC.
@@ -13721,17 +13721,17 @@
- (9) An information return or overseas return notification must be submitted by the end of the period of 15 months beginning with the day after the end of the accounting period in respect of which the return or notification is being submitted.
- (10) But the longer period in sub-paragraph [(11)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/11/2023-07-31) applies if the return or notification is being submitted in respect of the first accounting period in relation to which the group is a registered group.
- (10) But the longer period in sub-paragraph [(11)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/11/2023-08-01) applies if the return or notification is being submitted in respect of the first accounting period in relation to which the group is a registered group.
- (11) Where this sub-paragraph applies, the information return or overseas return notification must be submitted by the end of the period of 18 months beginning with the day after the end of the accounting period.
##### 11
- (1) The filing member may amend a return submitted under paragraph [10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/2023-07-31) by notice to HMRC.
- (1) The filing member may amend a return submitted under paragraph [10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/2023-08-01) by notice to HMRC.
- (2) The filing member may further amend a return previously amended by further notice to HMRC.
- (3) No amendment may be made after the end of the period of 12 months beginning with the day after the latest date by which the return or notification was required to be submitted under paragraph [10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/2023-07-31).
- (3) No amendment may be made after the end of the period of 12 months beginning with the day after the latest date by which the return or notification was required to be submitted under paragraph [10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/10/2023-08-01).
- (4) An amendment must be submitted in the way specified in a notice published by HMRC.
@@ -13743,7 +13743,7 @@
##### 13
- (1) The filing member of a registered group must submit a self-assessment return to HMRC for each accounting period, unless [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/3/2023-07-31) applies.
- (1) The filing member of a registered group must submit a self-assessment return to HMRC for each accounting period, unless [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/3/2023-08-01) applies.
- (2) A “self-assessment return” is a return containing—
@@ -13757,7 +13757,7 @@
- (3) This sub-paragraph applies if—
- (a) the conditions in sub-paragraph [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/5/2023-07-31) are met in relation to the group for the accounting period,
- (a) the conditions in sub-paragraph [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/5/2023-08-01) are met in relation to the group for the accounting period,
- (b) the filing member has submitted a below-threshold notification to HMRC, and
@@ -13765,7 +13765,7 @@
- (4) A “below-threshold notification” is a notification that the filing member—
- (a) considers that the conditions in sub-paragraph [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/5/2023-07-31) are met for an accounting period, and
- (a) considers that the conditions in sub-paragraph [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/5/2023-08-01) are met for an accounting period, and
- (b) does not expect that the conditions will cease to be met for that accounting period or any subsequent accounting period.
@@ -13781,17 +13781,17 @@
- (8) A self-assessment return or below-threshold notification must be submitted by the end of the period of 15 months beginning with the day after the end of the accounting period in respect of which the return or notification is being submitted.
- (9) But the longer period in sub-paragraph [(10)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/10/2023-07-31) applies if a self-assessment return is being submitted in respect of the first accounting period in relation to which the group is a registered group.
- (9) But the longer period in sub-paragraph [(10)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/10/2023-08-01) applies if a self-assessment return is being submitted in respect of the first accounting period in relation to which the group is a registered group.
- (10) Where this sub-paragraph applies, the self-assessment return must be submitted by the end of the period of 18 months beginning with the day after the end of the accounting period.
##### 14
- (1) The filing member may amend a return submitted under [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-07-31) by notice to HMRC.
- (1) The filing member may amend a return submitted under [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-08-01) by notice to HMRC.
- (2) The filing member may further amend a return previously amended by further notice to HMRC.
- (3) No amendment may be made after the end of the period of 12 months beginning with the day after the latest date by which the return or notification was required to be submitted under [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-07-31).
- (3) No amendment may be made after the end of the period of 12 months beginning with the day after the latest date by which the return or notification was required to be submitted under [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-08-01).
- (4) An amendment must be submitted in the way specified in a notice published by HMRC.
@@ -13799,9 +13799,9 @@
##### 15
- (1) [This Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/6/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) applies if the filing member of a multinational group has submitted a self-assessment return under [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-07-31) for an accounting period.
- (2) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/6/2023-07-31) “*return*” means a self-assessment return (including as amended under [paragraph 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/14/2023-07-31)).
- (1) [This Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/6/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) applies if the filing member of a multinational group has submitted a self-assessment return under [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-08-01) for an accounting period.
- (2) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/6/2023-08-01) “*return*” means a self-assessment return (including as amended under [paragraph 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/14/2023-08-01)).
##### 16
@@ -13813,13 +13813,13 @@
- (b) if the return was submitted after the submission date, up to and including the quarter day next following the first anniversary of the day on which the return was delivered;
- (c) if the return is amended under [paragraph 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/14/2023-07-31), up to and including the quarter day next following the first anniversary of the day on which the return was amended.
- (3) The submission date is the day ending the period for submission of the return referred to in [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-07-31)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/8/2023-07-31) (or the longer period referred to in paragraph [13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-07-31)[(10)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/10/2023-07-31) where applicable).
- (c) if the return is amended under [paragraph 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/14/2023-08-01), up to and including the quarter day next following the first anniversary of the day on which the return was amended.
- (3) The submission date is the day ending the period for submission of the return referred to in [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-08-01)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/8/2023-08-01) (or the longer period referred to in paragraph [13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-08-01)[(10)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/10/2023-08-01) where applicable).
- (4) The quarter days are 31 January, 30 April, 31 July and 31 October.
- (5) A notice under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2023-07-31) is referred to in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/6/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) as a “notice of enquiry”.
- (5) A notice under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2023-08-01) is referred to in [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/6/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) as a “notice of enquiry”.
- (6) A return that has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment of the return.
@@ -13833,9 +13833,9 @@
- (2) But, where the notice of enquiry is given in consequence of an amendment of a return—
- (a) at a time when it is no longer possible to give a notice of enquiry under [paragraph 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2/b/2023-07-31),
- (b) after a partial closure notice (see paragraph [22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/1/2023-07-31)) has been issued in relation to the matters to which the amendment relates or which are affected by the amendment, or
- (a) at a time when it is no longer possible to give a notice of enquiry under [paragraph 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2/b/2023-08-01),
- (b) after a partial closure notice (see paragraph [22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/1/2023-08-01)) has been issued in relation to the matters to which the amendment relates or which are affected by the amendment, or
- (c) after an enquiry into a return has been completed,
@@ -13843,13 +13843,13 @@
##### 18
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/6/2023-07-31) an enquiry is in progress into a return for the whole of the period—
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/6/2023-08-01) an enquiry is in progress into a return for the whole of the period—
- (a) beginning with the day on which notice of enquiry is given in relation to that return, and
- (b) ending with the day on which the enquiry is completed.
- (2) The enquiry is completed on the day a final closure notice is given (see paragraph [22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/2/2023-07-31)).
- (2) The enquiry is completed on the day a final closure notice is given (see paragraph [22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/2/2023-08-01)).
##### 19
@@ -13861,17 +13861,17 @@
the officer may by notice in writing to the filing member amend the assessment to make good the deficiency.
- (2) In the case of an enquiry that under [paragraph 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/17/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/17/2/2023-07-31) is limited to matters arising from an amendment of the return, [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/1/2023-07-31) applies only so far as the deficiency is attributable to the amendment.
- (3) In the case of an enquiry in relation to which one or more partial closure notices have been given, sub-paragraph [(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/1/2023-07-31) applies only so far as the deficiency is attributable to matters not addressed by those notices.
- (2) In the case of an enquiry that under [paragraph 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/17/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/17/2/2023-08-01) is limited to matters arising from an amendment of the return, [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/1/2023-08-01) applies only so far as the deficiency is attributable to the amendment.
- (3) In the case of an enquiry in relation to which one or more partial closure notices have been given, sub-paragraph [(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/1/2023-08-01) applies only so far as the deficiency is attributable to matters not addressed by those notices.
##### 20
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/20/2023-07-31) applies if a return is amended at a time when an enquiry is in progress into the return.
- (2) The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry (whether or not the amendment takes effect under sub-paragraph [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/20/4/2023-07-31)).
- (3) Sub-paragraph [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/20/4/2023-07-31) applies where the amendment is made otherwise than under paragraph [19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/2023-07-31).
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/20/2023-08-01) applies if a return is amended at a time when an enquiry is in progress into the return.
- (2) The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry (whether or not the amendment takes effect under sub-paragraph [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/20/4/2023-08-01)).
- (3) Sub-paragraph [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/20/4/2023-08-01) applies where the amendment is made otherwise than under paragraph [19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/2023-08-01).
- (4) So far as the amendment affects the amount stated in the return as the amount of tax payable, the amendment does not take effect, in relation to any matter to which it relates or which is affected by it, while the enquiry is in progress, except to the extent that—
@@ -13881,9 +13881,9 @@
- (5) The final closure notice—
- (a) must state whether and to what extent an amendment whose effect is deferred under sub-paragraph [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/20/4/2023-07-31) is to take effect;
- (b) may state that an amendment made under paragraph [19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/2023-07-31), and whose effect is not terminated or amended by a partial closure notice, is to cease to have effect or is to be amended as specified in the notice.
- (a) must state whether and to what extent an amendment whose effect is deferred under sub-paragraph [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/20/4/2023-08-01) is to take effect;
- (b) may state that an amendment made under paragraph [19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/2023-08-01), and whose effect is not terminated or amended by a partial closure notice, is to cease to have effect or is to be amended as specified in the notice.
##### 21
@@ -13911,13 +13911,13 @@
- (c) the questions referred have not been finally determined.
- (8) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/21/2023-07-31), a question referred is finally determined when—
- (8) In [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/21/2023-08-01), a question referred is finally determined when—
- (a) it has been determined by the tribunal, and
- (b) there is no further possibility of the determination being varied or set aside (disregarding any power to grant permission to appeal out of time).
- (9) The determination of a question referred to the tribunal is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal under Part [12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31).
- (9) The determination of a question referred to the tribunal is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal under Part [12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01).
- (10) The determination must be taken into account by an officer of Revenue and Customs—
@@ -13925,7 +13925,7 @@
- (b) in formulating any amendments of the return required to give effect to those conclusions.
- (11) The question determined may not be reopened on an appeal under [Part 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31), except to the extent that it could be reopened if it had been determined as a preliminary issue in that appeal.
- (11) The question determined may not be reopened on an appeal under [Part 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01), except to the extent that it could be reopened if it had been determined as a preliminary issue in that appeal.
##### 22
@@ -13963,13 +13963,13 @@
- (2) The tribunal hearing the application must give a direction unless satisfied that HMRC has reasonable grounds for not giving a closure notice within a specified period.
- (3) An application under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/23/2023-07-31) is to be treated as an appeal under [Part 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31).
- (3) An application under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/23/2023-08-01) is to be treated as an appeal under [Part 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01).
## Part 7 — Determinations where self-assessment return not submitted
##### 24
[This Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/7/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) applies if the filing member of a multinational group has not submitted a self-assessment return under [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-07-31) for an accounting period.
[This Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/7/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) applies if the filing member of a multinational group has not submitted a self-assessment return under [paragraph 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-08-01) for an accounting period.
##### 25
@@ -14001,7 +14001,7 @@
the assessment in the self-assessment return supersedes the assessment in the determination.
- (2) [Sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/26/1/2023-07-31) does not apply to a self-assessment return delivered after the later of—
- (2) [Sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/26/1/2023-08-01) does not apply to a self-assessment return delivered after the later of—
- (a) the day 3 years after the day on which the power to make the determination first became exercisable, and
@@ -14011,7 +14011,7 @@
- (a) proceedings have begun for the recovery of any tax assessed in a determination, and
- (b) before the proceedings are concluded the determination is superseded under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/26/1/2023-07-31),
- (b) before the proceedings are concluded the determination is superseded under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/26/1/2023-08-01),
the proceedings may be continued as if they were proceedings for the recovery of so much of the tax assessed in the self-assessment return as is due and payable and has not been paid.
@@ -14019,7 +14019,7 @@
- (a) action is being taken under Part 1 of Schedule 8 to the F(No.2)A 2015 (enforcement of deduction from accounts) for the recovery of an amount (“*the original amount*”) of tax assessed in a determination, and
- (b) before that action is concluded the determination is superseded under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/26/1/2023-07-31),
- (b) before that action is concluded the determination is superseded under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/26/1/2023-08-01),
that action may be continued as if it were an action for the recovery of so much of the tax assessed in the return as is due and payable, has not been paid and does not exceed the original amount.
@@ -14035,19 +14035,19 @@
the officer may make an assessment (a “discovery assessment”) in the amount which ought in the officer's opinion to be charged in order to make good to the Crown the loss of tax.
- (2) This is subject to the restrictions in [paragraph 28](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/2023-07-31).
- (2) This is subject to the restrictions in [paragraph 28](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/2023-08-01).
##### 28
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/2023-07-31) applies where the filing member of the group has submitted a self-assessment return under paragraph [13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-07-31) for the accounting period in respect of which the officer makes a discovery assessment.
- (2) Where [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/2023-07-31) applies, the power to make a discovery assessment—
- (a) may only be made in the two cases specified in [sub-paragraphs (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/3/2023-07-31) and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/4/2023-07-31), and
- (b) may not be made in the circumstances specified in [sub-paragraph (6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/6/2023-07-31).
- (3) The first case is where the situation mentioned in [paragraph 27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/1/2023-07-31) was brought about carelessly or deliberately on the part of—
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/2023-08-01) applies where the filing member of the group has submitted a self-assessment return under paragraph [13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/13/2023-08-01) for the accounting period in respect of which the officer makes a discovery assessment.
- (2) Where [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/2023-08-01) applies, the power to make a discovery assessment—
- (a) may only be made in the two cases specified in [sub-paragraphs (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/3/2023-08-01) and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/4/2023-08-01), and
- (b) may not be made in the circumstances specified in [sub-paragraph (6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/6/2023-08-01).
- (3) The first case is where the situation mentioned in [paragraph 27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/1/2023-08-01) was brought about carelessly or deliberately on the part of—
- (a) a member of the group of which the person forms part, or
@@ -14059,7 +14059,7 @@
- (b) completed an enquiry into the return,
could not have been reasonably expected, on the basis of the information made available to the officer before that time, to be aware of the situation mentioned in [paragraph 27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/1/2023-07-31).
could not have been reasonably expected, on the basis of the information made available to the officer before that time, to be aware of the situation mentioned in [paragraph 27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/1/2023-08-01).
- (5) For this purpose information is regarded as made available to the officer of Revenue and Customs if—
@@ -14067,15 +14067,15 @@
- (b) it is contained in any documents produced or information provided by the filing member for the purposes of an enquiry into any such return or notification, or
- (c) it is information the existence of which, and the relevance of which as regards the situation mentioned in paragraph [27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/1/2023-07-31)—
- (i) could reasonably be expected to be inferred by the officer of Revenue and Customs from information falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/5/a/2023-07-31) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/5/b/2023-07-31), or
- (c) it is information the existence of which, and the relevance of which as regards the situation mentioned in paragraph [27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/1/2023-08-01)—
- (i) could reasonably be expected to be inferred by the officer of Revenue and Customs from information falling within [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/5/a/2023-08-01) or [(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/28/5/b/2023-08-01), or
- (ii) are notified in writing to an officer of Revenue and Customs by the filing member or another person acting on the filing member's behalf.
- (6) No discovery assessment may be made if—
- (a) the situation mentioned in [paragraph 27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/1/2023-07-31) is attributable to a mistake in the return as to the basis on which the tax liability ought to have been calculated, and
- (a) the situation mentioned in [paragraph 27](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/27/1/2023-08-01) is attributable to a mistake in the return as to the basis on which the tax liability ought to have been calculated, and
- (b) the return was in fact made on the basis or in accordance with the practice generally prevailing at the time it was made.
@@ -14087,7 +14087,7 @@
- (3) A discovery assessment in a case involving a loss of tax brought about deliberately by a member of the group (or a person acting on their behalf) may be made at any time not more than 20 years after the end of the accounting period to which it relates.
- (4) A discovery assessment in a case involving a loss of tax brought about as a result of a failure of a filing member to register with HMRC under [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-07-31) may be made at any time not more than 20 years after the end of the accounting period to which it relates.
- (4) A discovery assessment in a case involving a loss of tax brought about as a result of a failure of a filing member to register with HMRC under [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-08-01) may be made at any time not more than 20 years after the end of the accounting period to which it relates.
##### 30
@@ -14101,7 +14101,7 @@
- (c) the time within which any appeal against the assessment must be made.
- (3) After notice of the assessment has been served under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/30/2023-07-31), the assessment may not be altered except as provided for by or under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31).
- (3) After notice of the assessment has been served under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/30/2023-08-01), the assessment may not be altered except as provided for by or under [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01).
- (4) Where an officer of Revenue and Customs has—
@@ -14119,7 +14119,7 @@
- (a) keep such records as may be needed to enable it to deliver correct and complete returns if required, and
- (b) preserve those records in accordance with [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/31/1/b/2023-07-31).
- (b) preserve those records in accordance with [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/31/1/b/2023-08-01).
- (2) The records must be preserved until the end of the relevant day.
@@ -14129,7 +14129,7 @@
- (i) the ninth anniversary of the last day of the accounting period to which the records relate, and
- (ii) if a self-assessment return relating to that accounting period is submitted and a notice of enquiry into that return has been given before the anniversary referred to in sub-paragraph [(i)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/31/3/a/i/2023-07-31), the day at the end of the period of six months beginning with the day the enquiry is completed;
- (ii) if a self-assessment return relating to that accounting period is submitted and a notice of enquiry into that return has been given before the anniversary referred to in sub-paragraph [(i)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/31/3/a/i/2023-08-01), the day at the end of the period of six months beginning with the day the enquiry is completed;
- (b) such earlier day as may be specified in a notice published by HMRC (and different days may be specified for different cases).
@@ -14149,15 +14149,15 @@
- (1) Multinational top-up tax due must be paid by the end of the period of 15 months beginning with the day after the end of the accounting period.
- (2) But the longer period in sub-paragraph [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/3/2023-07-31) applies if the liability to pay tax arises in respect of the first accounting period in relation to which a group is a qualifying multinational group.
- (2) But the longer period in sub-paragraph [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/3/2023-08-01) applies if the liability to pay tax arises in respect of the first accounting period in relation to which a group is a qualifying multinational group.
- (3) Where this sub-paragraph applies, multinational top-up tax due must be paid by the end of the period of 18 months beginning with the day after the end of the accounting period.
- (4) A person’s liability to pay multinational top-up tax may be discharged by another member of the multinational group to which the liability relates (but see paragraph [37](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/37/2023-07-31)).
- (4) A person’s liability to pay multinational top-up tax may be discharged by another member of the multinational group to which the liability relates (but see paragraph [37](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/37/2023-08-01)).
##### 33
- (1) Interest is to accrue on amounts payable under [paragraph 32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-07-31), but not paid, from the day after the latest date on which the amounts were required to be paid.
- (1) Interest is to accrue on amounts payable under [paragraph 32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-08-01), but not paid, from the day after the latest date on which the amounts were required to be paid.
- (2) The rate of interest is to be as provided in regulations under section 178 of FA 1989.
@@ -14167,7 +14167,7 @@
- (1) An officer of Revenue and Customs may issue a group payment notice if an amount payable by a member of a multinational group of multinational top-up tax (including any interest on that amount) is not paid by the end of the period of three months beginning with the relevant date.
- (2) A group payment notice may be issued to any person who is a member of the group or who was a member of the group at the time the liability to tax arose (wherever in the world they are located), subject to [paragraph 35](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/35/2023-07-31) where the group contains ring-fenced entities.
- (2) A group payment notice may be issued to any person who is a member of the group or who was a member of the group at the time the liability to tax arose (wherever in the world they are located), subject to [paragraph 35](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/35/2023-08-01) where the group contains ring-fenced entities.
- (3) A group payment notice is a notice requiring the recipient to pay an outstanding amount of multinational top-up tax payable by a member of the group by a date specified in the notice.
@@ -14179,7 +14179,7 @@
- (b) the date any tax first became payable, and
- (c) the member's right of appeal (see paragraph [36](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/36/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/36/3/2023-07-31)).
- (c) the member's right of appeal (see paragraph [36](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/36/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/36/3/2023-08-01)).
- (6) A group payment notice may not be issued more than 3 years and 6 months after the relevant date.
@@ -14225,7 +14225,7 @@
##### 36
- (1) The effect of a group payment notice being issued under [paragraph 34](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/34/2023-07-31) is that the recipient is treated as if—
- (1) The effect of a group payment notice being issued under [paragraph 34](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/34/2023-08-01) is that the recipient is treated as if—
- (a) a liability of a member other than the recipient were a liability of the recipient (“the deemed liability”),
@@ -14233,7 +14233,7 @@
- (c) any payments made in respect of the relevant liability were made in respect of the deemed liability.
- (2) Nothing in [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/36/2023-07-31) gives the recipient a right to appeal against any assessment, determination or other decision giving rise to a liability of a member other than the recipient (or against the deemed liability).
- (2) Nothing in [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/36/2023-08-01) gives the recipient a right to appeal against any assessment, determination or other decision giving rise to a liability of a member other than the recipient (or against the deemed liability).
- (3) The recipient may appeal against the notice, within the period of 30 days beginning with the date on which it is given, on the ground that the person in respect of which the notice is given is not a member of the group or was not a member of the group at the time the liability arose.
@@ -14279,7 +14279,7 @@
- (a) a liability of any person who was a member of the group in the period to multinational top-up tax in respect of the period;
- (b) a liability of a person to a penalty referred to in paragraph [40](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/2023-07-31) for anything done (or not done) in respect of the period.
- (b) a liability of a person to a penalty referred to in paragraph [40](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/2023-08-01) for anything done (or not done) in respect of the period.
#### Power to make regulations
@@ -14303,30 +14303,30 @@
##### 40
[This Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/11/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) sets out penalties payable in connection with [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31), as follows—
- (a) paragraph [41](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/41/2023-07-31) amends Schedule 41 to FA 2008 to impose a penalty on a filing member of a multinational group that fails to register with or otherwise notify HMRC under [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31);
- (b) [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-07-31) imposes a penalty on a filing member of a registered group that fails to submit an information return or overseas return notification under [Part 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/4/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31);
- (c) [paragraph 43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-07-31) imposes a penalty on a filing member of a registered group that fails to submit a self-assessment return or below-threshold notification under [Part 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/5/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31);
- (d) paragraph [45](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/45/2023-07-31) amends Schedule 24 to FA 2007 to impose a penalty on a filing member of a multinational group that provides inaccurate information to HMRC;
- (e) [paragraph 46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-07-31) imposes a penalty on a filing member of a multinational group that fails to keep or preserve records under [Part 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/9/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31).
[This Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/11/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) sets out penalties payable in connection with [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01), as follows—
- (a) paragraph [41](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/41/2023-08-01) amends Schedule 41 to FA 2008 to impose a penalty on a filing member of a multinational group that fails to register with or otherwise notify HMRC under [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01);
- (b) [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-08-01) imposes a penalty on a filing member of a registered group that fails to submit an information return or overseas return notification under [Part 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/4/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01);
- (c) [paragraph 43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-08-01) imposes a penalty on a filing member of a registered group that fails to submit a self-assessment return or below-threshold notification under [Part 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/5/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01);
- (d) paragraph [45](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/45/2023-08-01) amends Schedule 24 to FA 2007 to impose a penalty on a filing member of a multinational group that provides inaccurate information to HMRC;
- (e) [paragraph 46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-08-01) imposes a penalty on a filing member of a multinational group that fails to keep or preserve records under [Part 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/9/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01).
##### 41
In paragraph 1 of Schedule 41 to FA 2008 (penalties for failure to notify etc), in the table after the entry relating to digital services tax insert—
| Multinational top-up tax | Obligation of a filing member of a multinational group under Part [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) to FA 2023. |
| Multinational top-up tax | Obligation of a filing member of a multinational group under Part [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) to FA 2023. |
| --- | --- |
.
##### 42
- (1) A penalty is payable if the filing member fails to submit an information return or overseas return notification by the submission date, unless [paragraph 44](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/44/2023-07-31) (reasonable excuse) applies.
- (1) A penalty is payable if the filing member fails to submit an information return or overseas return notification by the submission date, unless [paragraph 44](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/44/2023-08-01) (reasonable excuse) applies.
- (2) The penalty is—
@@ -14338,25 +14338,25 @@
- (3) For a third successive failure, the amount referred to in—
- (a) [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/a/2023-07-31) is increased to £500;
- (b) [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/b/2023-07-31) and [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/c/2023-07-31) is increased to £1,000.
- (a) [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/a/2023-08-01) is increased to £500;
- (b) [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/b/2023-08-01) and [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2/c/2023-08-01) is increased to £1,000.
- (4) For this purpose, a “third successive failure” occurs where—
- (a) the duty to submit a return or notification applies in relation to a group for three successive accounting periods,
- (b) the member was liable to a penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/4/b/2023-07-31) in respect of each of the first two accounting periods, and
- (c) the member is liable to a penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/4/c/2023-07-31) in respect of the third accounting period.
- (b) the member was liable to a penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/4/b/2023-08-01) in respect of each of the first two accounting periods, and
- (c) the member is liable to a penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/4/c/2023-08-01) in respect of the third accounting period.
- (5) The additional penalty amount is £60 multiplied by the number of days, after the day six months after the submission date, on which the filing member fails to submit the return or notification.
- (6) The submission date is the last date the filing member is permitted to submit the return or notification under [Part 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/4/2023-07-31) of this Schedule.
- (6) The submission date is the last date the filing member is permitted to submit the return or notification under [Part 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/4/2023-08-01) of this Schedule.
##### 43
- (1) A penalty is payable if the filing member fails to submit a self-assessment return or below-threshold notification by the submission date, unless [paragraph 44](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/44/2023-07-31) (reasonable excuse) applies.
- (1) A penalty is payable if the filing member fails to submit a self-assessment return or below-threshold notification by the submission date, unless [paragraph 44](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/44/2023-08-01) (reasonable excuse) applies.
- (2) The penalty is—
@@ -14370,25 +14370,25 @@
- (3) For a third successive failure, the amount referred to in—
- (a) [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/a/2023-07-31) is increased to £500;
- (b) [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/b/2023-07-31), [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/c/2023-07-31) and [(d)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/d/2023-07-31) is increased to £1,000.
- (a) [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/a/2023-08-01) is increased to £500;
- (b) [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/b/2023-08-01), [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/c/2023-08-01) and [(d)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2/d/2023-08-01) is increased to £1,000.
- (4) For this purpose, a “third successive failure” occurs where—
- (a) the duty to submit a return or notification applies in relation to a group for three successive accounting periods,
- (b) the member was liable to a penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/4/b/2023-07-31) in respect of each of the first two accounting periods, and
- (c) the member is liable to penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/4/c/2023-07-31) in respect of the third accounting period.
- (5) The “*unpaid tax*” means the total amount of tax payable by members of the group for the accounting period which remains unpaid on the date when the liability to the penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-07-31) arises.
- (6) The submission date is the last date the filing member is permitted to submit the return or notification under [Part 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/5/2023-07-31) of this Schedule.
- (b) the member was liable to a penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/4/b/2023-08-01) in respect of each of the first two accounting periods, and
- (c) the member is liable to penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/4/c/2023-08-01) in respect of the third accounting period.
- (5) The “*unpaid tax*” means the total amount of tax payable by members of the group for the accounting period which remains unpaid on the date when the liability to the penalty under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-08-01) arises.
- (6) The submission date is the last date the filing member is permitted to submit the return or notification under [Part 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/5/2023-08-01) of this Schedule.
##### 44
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/44/2023-07-31) applies if the filing member satisfies HMRC or (on appeal) the tribunal that there is a reasonable excuse for the failure to submit the return or notification (as the case may be).
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/44/2023-08-01) applies if the filing member satisfies HMRC or (on appeal) the tribunal that there is a reasonable excuse for the failure to submit the return or notification (as the case may be).
- (2) For that purpose—
@@ -14413,7 +14413,7 @@
- (1) A penalty is payable if—
- (a) the member breaches their obligations under [Part 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/9/2023-07-31) of this Schedule in relation to an accounting period, and
- (a) the member breaches their obligations under [Part 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/9/2023-08-01) of this Schedule in relation to an accounting period, and
- (b) HMRC is not satisfied that any facts which HMRC reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence provided to HMRC.
@@ -14423,7 +14423,7 @@
##### 47
Paragraphs [48](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/2023-07-31) and [49](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49/2023-07-31) apply in relation to a penalty payable under [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-07-31), [43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-07-31) or [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-07-31).
Paragraphs [48](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/2023-08-01) and [49](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49/2023-08-01) apply in relation to a penalty payable under [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-08-01), [43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-08-01) or [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-08-01).
##### 48
@@ -14435,15 +14435,15 @@
- (2) The assessment of a penalty—
- (a) is to be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)),
- (b) may be enforced as if it were an assessment to tax (save that interest is not to accrue on a penalty under paragraph [33](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/33/2023-07-31)), and
- (a) is to be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)),
- (b) may be enforced as if it were an assessment to tax (save that interest is not to accrue on a penalty under paragraph [33](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/33/2023-08-01)), and
- (c) may be combined with an assessment to tax.
- (3) A supplementary assessment may be made in respect of a penalty if an earlier assessment is based on an amount of tax due and payable that is found by HMRC to be an underestimate or insufficient.
- (4) [Sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/5/2023-07-31) applies if—
- (4) [Sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/5/2023-08-01) applies if—
- (a) an assessment in respect of a penalty is based on a liability to tax shown in a self-assessment return, and
@@ -14451,11 +14451,11 @@
- (5) HMRC may by notice amend the assessment so it is based on the correct amount.
- (6) An amendment under [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/5/2023-07-31)—
- (6) An amendment under [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/5/2023-08-01)—
- (a) does not affect when the penalty must be paid;
- (b) may be made after the last day on which the assessment in question could have been made (under sub-paragraph [(7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/7/2023-07-31)).
- (b) may be made after the last day on which the assessment in question could have been made (under sub-paragraph [(7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/7/2023-08-01)).
- (7) An assessment of a penalty must be made before the end of the period of 12 months beginning with—
@@ -14463,7 +14463,7 @@
- (b) if there is no such assessment, the date on which that liability is ascertained or it is ascertained that the liability is nil.
- (8) In [sub-paragraph (7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/7/2023-07-31) “*appeal period*” means the period during which—
- (8) In [sub-paragraph (7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/48/7/2023-08-01) “*appeal period*” means the period during which—
- (a) an appeal could be brought, or
@@ -14475,13 +14475,13 @@
- (1) If HMRC thinks it right because of special circumstances, HMRC may reduce the penalty.
- (2) In [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49/1/2023-07-31) “*special circumstances*” does not include—
- (2) In [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49/1/2023-08-01) “*special circumstances*” does not include—
- (a) ability to pay, or
- (b) the fact that a potential loss of revenue from one taxpayer is balanced by a potential over-payment by another.
- (3) In [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49/1/2023-07-31) the reference to reducing a penalty includes a reference to—
- (3) In [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49/1/2023-08-01) the reference to reducing a penalty includes a reference to—
- (a) staying a penalty, and
@@ -14515,31 +14515,31 @@
- (4) The Commissioners must give effect to a claim as made, unless—
- (a) a condition in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2/2023-07-31) is not met in relation to the claim,
- (b) [paragraph 52](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/52/2023-07-31) applies, or
- (c) the claim is amended following an enquiry under [paragraph 53](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/53/2023-07-31).
- (5) The Commissioners are not otherwise, in the absence of a claim under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2023-07-31), liable to repay any amount paid by way of multinational top-up tax by reason of the fact it was not tax due.
- (a) a condition in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2/2023-08-01) is not met in relation to the claim,
- (b) [paragraph 52](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/52/2023-08-01) applies, or
- (c) the claim is amended following an enquiry under [paragraph 53](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/53/2023-08-01).
- (5) The Commissioners are not otherwise, in the absence of a claim under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2023-08-01), liable to repay any amount paid by way of multinational top-up tax by reason of the fact it was not tax due.
- (6) The Commissioners may however repay an amount paid that was not tax due to the person who paid that amount.
- (7) An amount that may be repaid by the Commissioners under this paragraph, but is not repaid, incurs interest at the rate provided for in regulations made under section 178 of FA 1989 from the later of—
- (a) the day after the latest day (under paragraph [32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-07-31)) by which the amount paid would have been required to be paid as multinational top-up tax if it were due, and
- (a) the day after the latest day (under paragraph [32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-08-01)) by which the amount paid would have been required to be paid as multinational top-up tax if it were due, and
- (b) the day on which the amount was paid.
- (8) Paragraph [54](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2023-07-31) makes further provision in relation to amounts repaid.
- (8) Paragraph [54](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2023-08-01) makes further provision in relation to amounts repaid.
##### 52
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/52/2023-07-31) applies where one or more of Cases A to D apply.
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/52/2023-08-01) applies where one or more of Cases A to D apply.
- (2) Case A applies where a member of the claimant’s group has an unpaid liability to tax.
- (3) Case B applies where the claimant is seeking or will be able to seek relief by taking other steps under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-07-31) of this Act.
- (3) Case B applies where the claimant is seeking or will be able to seek relief by taking other steps under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-08-01) of this Act.
- (4) Case C applies where the claimant—
@@ -14553,7 +14553,7 @@
- (b) the amount was calculated in accordance with the practice generally prevailing at the time.
- (6) Where [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/52/2023-07-31) applies, the Commissioners are not liable to repay any amount paid by way of multinational top-up tax by reason of the fact it was not tax due.
- (6) Where [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/52/2023-08-01) applies, the Commissioners are not liable to repay any amount paid by way of multinational top-up tax by reason of the fact it was not tax due.
##### 53
@@ -14563,7 +14563,7 @@
- (3) The quarter days are 31 January, 30 April, 31 July and 31 October.
- (4) A claim enquired into under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/53/1/2023-07-31) may not be the subject of a further notice under that sub-paragraph.
- (4) A claim enquired into under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/53/1/2023-08-01) may not be the subject of a further notice under that sub-paragraph.
- (5) An enquiry is completed when the officer by notice (a “closure notice”) informs the claimant that the enquiry is complete and states the conclusion reached in the enquiry.
@@ -14583,11 +14583,11 @@
- (9) The adjustments must be made within 30 days of the date of issue of the closure notice.
- (10) [Paragraph 23](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/23/2023-07-31) (direction to complete enquiry) applies in relation to an enquiry under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/53/2023-07-31) as it applies in relation to an enquiry under [paragraph 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2023-07-31).
- (10) [Paragraph 23](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/23/2023-08-01) (direction to complete enquiry) applies in relation to an enquiry under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/53/2023-08-01) as it applies in relation to an enquiry under [paragraph 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/16/2023-08-01).
##### 54
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2023-07-31) applies where—
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2023-08-01) applies where—
- (a) an amount has been paid by way of a repayment of tax, and
@@ -14599,9 +14599,9 @@
- (b) notify the amount to the person to whom the repayment was made.
- (3) [Sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/4/2023-07-31) applies where—
- (a) an assessment has been notified under [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2/2023-07-31), and
- (3) [Sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/4/2023-08-01) applies where—
- (a) an assessment has been notified under [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2/2023-08-01), and
- (b) it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.
@@ -14611,11 +14611,11 @@
- (b) notify the amount to the person to whom the repayment was made.
- (5) An amount assessed and notified under [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2/2023-07-31) or [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/4/2023-07-31) counts as a liability to multinational top-up tax for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-07-31) of this Act.
- (6) But [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/5/2023-07-31) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.
- (7) An assessment under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2023-07-31) may not be made more than 4 years after the end of the accounting period in which evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.
- (5) An amount assessed and notified under [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2/2023-08-01) or [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/4/2023-08-01) counts as a liability to multinational top-up tax for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-08-01) of this Act.
- (6) But [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/5/2023-08-01) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.
- (7) An assessment under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2023-08-01) may not be made more than 4 years after the end of the accounting period in which evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.
#### Appeals of decisions: general
@@ -14623,17 +14623,17 @@
- (1) An appeal may be brought against—
- (a) an amendment of a self-assessment return under [paragraph 19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/2023-07-31) (amendment during enquiry to prevent loss of tax);
- (b) an amendment made by a closure notice under [paragraph 22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/2023-07-31);
- (a) an amendment of a self-assessment return under [paragraph 19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/19/2023-08-01) (amendment during enquiry to prevent loss of tax);
- (b) an amendment made by a closure notice under [paragraph 22](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/22/2023-08-01);
- (c) a discovery assessment;
- (d) an assessment of a penalty under [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-07-31), [43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-07-31) or [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-07-31);
- (e) an amendment made by a closure notice under [paragraph 53](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/53/2023-07-31);
- (f) an assessment made under paragraph [54](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2023-07-31).
- (d) an assessment of a penalty under [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-08-01), [43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-08-01) or [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-08-01);
- (e) an amendment made by a closure notice under [paragraph 53](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/53/2023-08-01);
- (f) an assessment made under paragraph [54](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/54/2023-08-01).
- (2) Any such appeal is to be brought by the filing member (“*the appellant*”).
@@ -14645,15 +14645,15 @@
- (4) “*Specified date*” means—
- (a) in relation to an appeal under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/a/2023-07-31), the date on which the notice of amendment was issued;
- (b) in relation to an appeal under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/b/2023-07-31) or [(e)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/e/2023-07-31), the date on which the closure notice was issued;
- (c) in relation to an appeal under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/c/2023-07-31), [(d)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/d/2023-07-31) or [(f)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/f/2023-07-31), the date on which the notice of assessment was issued.
- (a) in relation to an appeal under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/a/2023-08-01), the date on which the notice of amendment was issued;
- (b) in relation to an appeal under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/b/2023-08-01) or [(e)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/e/2023-08-01), the date on which the closure notice was issued;
- (c) in relation to an appeal under [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/c/2023-08-01), [(d)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/d/2023-08-01) or [(f)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/f/2023-08-01), the date on which the notice of assessment was issued.
- (5) The notice of appeal must specify the grounds of appeal.
- (6) Notice may be given after the time limit in [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/3/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/3/b/2023-07-31) if—
- (6) Notice may be given after the time limit in [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/3/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/3/b/2023-08-01) if—
- (a) HMRC agrees, or
@@ -14665,7 +14665,7 @@
- (b) that the request has been made without unreasonable delay.
- (8) If a request of the kind mentioned in [sub-paragraph (7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/7/2023-07-31) is made, HMRC must notify the appellant of whether or not HMRC agrees to the request.
- (8) If a request of the kind mentioned in [sub-paragraph (7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/7/2023-08-01) is made, HMRC must notify the appellant of whether or not HMRC agrees to the request.
##### 56
@@ -14681,13 +14681,13 @@
- (2) But if—
- (a) the appeal is an appeal under paragraph [55](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/a/2023-07-31) against an amendment of a self-assessment, and
- (a) the appeal is an appeal under paragraph [55](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/1/a/2023-08-01) against an amendment of a self-assessment, and
- (b) the appeal is made while an enquiry into the return is in progress,
sub-paragraphs [(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/56/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/56/1/a/2023-07-31) and [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/56/1/c/2023-07-31) do not apply in relation to the appeal until the enquiry is completed.
- (3) See also paragraph [67](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/67/2023-07-31) for special provision relating to the appeal of a penalty under [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-07-31), [43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-07-31) or [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-07-31).
sub-paragraphs [(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/56/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/56/1/a/2023-08-01) and [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/56/1/c/2023-08-01) do not apply in relation to the appeal until the enquiry is completed.
- (3) See also paragraph [67](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/67/2023-08-01) for special provision relating to the appeal of a penalty under [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-08-01), [43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-08-01) or [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-08-01).
#### Reviews by HMRC
@@ -14723,11 +14723,11 @@
- (5) If the appellant does not accept the offer within the acceptance period—
- (a) HMRC's view of the matter is to be treated as if it were contained in a settlement agreement under paragraph [61](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/2023-07-31), but
- (a) HMRC's view of the matter is to be treated as if it were contained in a settlement agreement under paragraph [61](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/2023-08-01), but
- (b) the right to withdraw from such an agreement does not apply in relation to that notional agreement.
- (6) [Sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/5/2023-07-31) does not apply to the matter if, or to the extent that, the appellant notifies the appeal to the tribunal.
- (6) [Sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/5/2023-08-01) does not apply to the matter if, or to the extent that, the appellant notifies the appeal to the tribunal.
- (7) The appellant may notify the appeal to the tribunal—
@@ -14747,7 +14747,7 @@
- (3) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.
- (4) For the purpose of [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/3/2023-07-31), HMRC must, in particular, have regard to steps taken before the beginning of the review—
- (4) For the purpose of [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/3/2023-08-01), HMRC must, in particular, have regard to steps taken before the beginning of the review—
- (a) by HMRC in deciding the matter, and
@@ -14757,7 +14757,7 @@
##### 59
- (1) The review may conclude that HMRC's view of the matter (as notified to the appellant under paragraph [57](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/4/2023-07-31) or [58](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2/2023-07-31)) is to be—
- (1) The review may conclude that HMRC's view of the matter (as notified to the appellant under paragraph [57](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/4/2023-08-01) or [58](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2/2023-08-01)) is to be—
- (a) upheld,
@@ -14771,19 +14771,19 @@
- (b) such other period as may be agreed.
- (3) In [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2/2023-07-31) “*relevant day*” means—
- (3) In [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2/2023-08-01) “*relevant day*” means—
- (a) in a case where the appellant required the review, the day when HMRC notified the appellant of HMRC's view of the matter;
- (b) in a case where HMRC offered the review, the day when HMRC received notification of the appellant's acceptance of the offer.
- (4) If HMRC do not give notice of the conclusions of the review within the period specified in [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/3/2023-07-31), the review is treated as having concluded that HMRC's view of the matter in question is upheld.
- (5) If [sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/4/2023-07-31) applies, HMRC must notify the appellant of the conclusions which the review is treated as having reached.
- (6) The conclusions of a review are to be treated as if they were contained in a settlement agreement under paragraph [61](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/2023-07-31), but the right to withdraw from such an agreement does not apply in relation to that notional agreement.
- (7) [Sub-paragraph (6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/6/2023-07-31) does not apply to the matter if, or to the extent that, the appellant notifies the appeal to the tribunal.
- (4) If HMRC do not give notice of the conclusions of the review within the period specified in [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/3/2023-08-01), the review is treated as having concluded that HMRC's view of the matter in question is upheld.
- (5) If [sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/4/2023-08-01) applies, HMRC must notify the appellant of the conclusions which the review is treated as having reached.
- (6) The conclusions of a review are to be treated as if they were contained in a settlement agreement under paragraph [61](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/2023-08-01), but the right to withdraw from such an agreement does not apply in relation to that notional agreement.
- (7) [Sub-paragraph (6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/6/2023-08-01) does not apply to the matter if, or to the extent that, the appellant notifies the appeal to the tribunal.
- (8) The appellant may notify the appeal to the tribunal—
@@ -14793,19 +14793,19 @@
- (9) The post-review period is—
- (a) if HMRC has notified the appellant of the conclusions of the review in accordance with [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2/2023-07-31), the period of 30 days beginning with that notice;
- (b) if HMRC has not so notified the appellant, the period beginning with the day following the last day of the period specified in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2/2023-07-31) and ending 30 days after the date on which HMRC gives notice in accordance with [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/5/2023-07-31).
- (a) if HMRC has notified the appellant of the conclusions of the review in accordance with [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2/2023-08-01), the period of 30 days beginning with that notice;
- (b) if HMRC has not so notified the appellant, the period beginning with the day following the last day of the period specified in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2/2023-08-01) and ending 30 days after the date on which HMRC gives notice in accordance with [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/5/2023-08-01).
##### 60
- (1) In [paragraphs 57](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/2023-07-31) to [59](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2023-07-31), a reference to the appellant includes a person acting on behalf of the appellant except in relation to—
- (a) notification by HMRC of an offer of review (and of their view of the matter) under [paragraph 57](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/2023-07-31);
- (b) notification of HMRC's view under [paragraph 58](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2/a/2023-07-31);
- (c) notification of the conclusions of a review under [paragraph 59](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2/2023-07-31) or [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/5/2023-07-31).
- (1) In [paragraphs 57](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/2023-08-01) to [59](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2023-08-01), a reference to the appellant includes a person acting on behalf of the appellant except in relation to—
- (a) notification by HMRC of an offer of review (and of their view of the matter) under [paragraph 57](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/57/2023-08-01);
- (b) notification of HMRC's view under [paragraph 58](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/58/2/a/2023-08-01);
- (c) notification of the conclusions of a review under [paragraph 59](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/2/2023-08-01) or [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/59/5/2023-08-01).
- (2) But if any such notification is given to the appellant, a copy of the notification may also be given to a person acting on behalf of the appellant.
@@ -14823,15 +14823,15 @@
- (2) Where a settlement agreement is entered into in relation to an appeal, the consequences are to be the same (for all purposes) as if, at the time the agreement was entered into, the tribunal had decided the appeal and had upheld the decision without variation, varied it in that manner or discharged or cancelled it, as the case may be.
- (3) [Sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/2/2023-07-31) does not apply if, within 30 days beginning with the date on which the settlement agreement was entered into, the appellant gives notice in writing to HMRC that it wishes to withdraw from the agreement.
- (4) [Sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/5/2023-07-31) applies where notice of an appeal has been given and—
- (3) [Sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/2/2023-08-01) does not apply if, within 30 days beginning with the date on which the settlement agreement was entered into, the appellant gives notice in writing to HMRC that it wishes to withdraw from the agreement.
- (4) [Sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/5/2023-08-01) applies where notice of an appeal has been given and—
- (a) the appellant notifies HMRC, orally or in writing, that the appellant does not wish to proceed with the appeal, and
- (b) HMRC does not, within 30 days after that notification, give the appellant notice in writing indicating that HMRC is unwilling that the appeal should be withdrawn.
- (5) [Sub-paragraphs (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/1/2023-07-31) to [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/3/2023-07-31) have effect as if, at the date of the appellant's notification, the appellant and an officer of Revenue and Customs had agreed that the decision under appeal should be upheld without variation.
- (5) [Sub-paragraphs (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/1/2023-08-01) to [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/3/2023-08-01) have effect as if, at the date of the appellant's notification, the appellant and an officer of Revenue and Customs had agreed that the decision under appeal should be upheld without variation.
#### Determination by tribunal
@@ -14843,13 +14843,13 @@
- (3) If the tribunal decides that a person is undercharged to multinational top-up tax, the assessment must be increased accordingly.
- (4) In a case where neither [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/62/2/2023-07-31) or [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/62/3/2023-07-31) apply, the assessment is to stand good.
- (4) In a case where neither [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/62/2/2023-08-01) or [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/62/3/2023-08-01) apply, the assessment is to stand good.
- (5) On the determination of the appeal—
- (a) any tax overpaid must be repaid as if a claim had been made under [paragraph 51](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2023-07-31) on the day notice of the appeal was given to HMRC;
- (b) any tax payable in accordance with the determination is payable in accordance with [paragraph 32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-07-31).
- (a) any tax overpaid must be repaid as if a claim had been made under [paragraph 51](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2023-08-01) on the day notice of the appeal was given to HMRC;
- (b) any tax payable in accordance with the determination is payable in accordance with [paragraph 32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-08-01).
- (6) Interest is to be incurred on amounts payable in accordance with those paragraphs.
@@ -14859,7 +14859,7 @@
- (a) if too much tax has been paid, the amount overpaid must be refunded, with any interest allowed by the order or judgment, and
- (b) if too little tax has been charged, the tax is payable in accordance with [paragraph 32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-07-31).
- (b) if too little tax has been charged, the tax is payable in accordance with [paragraph 32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-08-01).
- (9) The determination of the tribunal is final and conclusive except as otherwise provided in sections 10 to 16 of the Tribunals, Courts and Enforcement Act 2007.
@@ -14867,9 +14867,9 @@
##### 63
- (1) The general rule is that an appeal under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) does not postpone any liability to pay multinational top-up tax.
- (2) Accordingly, the periods within which tax is payable under [paragraph 32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-07-31) continue to apply notwithstanding an appeal.
- (1) The general rule is that an appeal under [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) does not postpone any liability to pay multinational top-up tax.
- (2) Accordingly, the periods within which tax is payable under [paragraph 32](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/32/2023-08-01) continue to apply notwithstanding an appeal.
- (3) But a liability may be postponed if—
@@ -14895,13 +14895,13 @@
- (b) an amount of tax postponed under a previous determination is excessive or insufficient.
- (2) An application must be made within 30 days after the specified date (see [paragraph 55](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/4/2023-07-31)), unless [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/64/3/2023-07-31) applies.
- (2) An application must be made within 30 days after the specified date (see [paragraph 55](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/4/2023-08-01)), unless [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/64/3/2023-08-01) applies.
- (3) This sub-paragraph applies if—
- (a) there is a change in the circumstances of the case as a result of which the appellant has grounds to believe the matter in [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/64/1/2023-07-31), or
- (b) the application could, if it were a notice of appeal, be given at a later date under [paragraph 55](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/6/2023-07-31).
- (a) there is a change in the circumstances of the case as a result of which the appellant has grounds to believe the matter in [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/64/1/2023-08-01), or
- (b) the application could, if it were a notice of appeal, be given at a later date under [paragraph 55](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/55/6/2023-08-01).
- (4) The application must state the amount believed to be overcharged and the grounds for that belief.
@@ -14925,15 +14925,15 @@
- (2) The tribunal may direct whether the determination of HMRC was correct.
- (3) A decision of the tribunal under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/65/2023-07-31) is final and conclusive (despite the provisions of sections 12 and 15 of the Tribunals, Courts and Enforcement Act 2007).
- (3) A decision of the tribunal under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/65/2023-08-01) is final and conclusive (despite the provisions of sections 12 and 15 of the Tribunals, Courts and Enforcement Act 2007).
##### 66
- (1) HMRC and the appellant may agree that payment of an amount of tax should be postponed pending the determination of the appeal.
- (2) The agreement may modify a determination by HMRC under [paragraph 64](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/64/2023-07-31).
- (3) Where the agreement does so, it is to be treated in the same way as a settlement agreement under [paragraph 61](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/2023-07-31).
- (2) The agreement may modify a determination by HMRC under [paragraph 64](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/64/2023-08-01).
- (3) Where the agreement does so, it is to be treated in the same way as a settlement agreement under [paragraph 61](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/61/2023-08-01).
- (4) The consequences of an agreement are to be the same as if the tribunal had, at the time when the agreement was entered into, made a direction to the same effect as the agreement.
@@ -14949,9 +14949,9 @@
##### 67
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/67/2023-07-31) applies to an appeal as to—
- (a) whether a penalty under [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-07-31), [43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-07-31) or [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-07-31) is payable;
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/67/2023-08-01) applies to an appeal as to—
- (a) whether a penalty under [paragraph 42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-08-01), [43](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/43/2023-08-01) or [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-08-01) is payable;
- (b) the amount of such a penalty.
@@ -14959,9 +14959,9 @@
- (3) Accordingly—
- (a) [paragraphs 63](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/1/2023-07-31) to [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/3/2023-07-31) and [64](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/64/2023-07-31) to [66](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/66/2023-07-31) do not apply to such an appeal;
- (b) paragraphs [63](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/4/2023-07-31) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/5/2023-07-31) always apply to such an appeal.
- (a) [paragraphs 63](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/1/2023-08-01) to [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/3/2023-08-01) and [64](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/64/2023-08-01) to [66](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/66/2023-08-01) do not apply to such an appeal;
- (b) paragraphs [63](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/4/2023-08-01) and [(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/63/5/2023-08-01) always apply to such an appeal.
- (4) If the appeal is notified to the tribunal, the tribunal may—
@@ -14969,7 +14969,7 @@
- (b) substitute for the decision another decision that HMRC had power to make.
- (5) The tribunal may only make a decision that HMRC had power to make under [paragraph 49](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49/2023-07-31) (reduction of penalties) if the tribunal considers HMRC’s decision to have been flawed when considered in light of the principles applicable in proceedings for judicial review.
- (5) The tribunal may only make a decision that HMRC had power to make under [paragraph 49](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49/2023-08-01) (reduction of penalties) if the tribunal considers HMRC’s decision to have been flawed when considered in light of the principles applicable in proceedings for judicial review.
- (6) On determination of the appeal, where a penalty is payable it is to be paid before the end of 30 days beginning with the day on which the determination was issued.
@@ -14981,7 +14981,7 @@
- (2) In section 178(2) of FA 1989 (setting of interest rates), at the end insert—
> (x) paragraphs [33](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/33/2023-07-31) and [51](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) to the Finance Act 2023.
> (x) paragraphs [33](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/33/2023-08-01) and [51](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) to the Finance Act 2023.
.
@@ -15003,27 +15003,27 @@
##### 1
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) applies to an election under the following provisions of Part 3—
- (a) [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-07-31)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-07-31);
- (b) [section 161](https://www.legislation.gov.uk/ukpga/2023/30/section/161/2023-07-31);
- (c) [section 162](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2023-07-31);
- (d) [section 164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-07-31);
- (e) [section 165](https://www.legislation.gov.uk/ukpga/2023/30/section/165/2023-07-31);
- (f) [section 166](https://www.legislation.gov.uk/ukpga/2023/30/section/166/2023-07-31);
- (g) [section 187](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-07-31);
- (h) [section 213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-07-31);
- (i) [section 214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-07-31).
- (2) An election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) applies—
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) applies to an election under the following provisions of Part 3—
- (a) [section 127](https://www.legislation.gov.uk/ukpga/2023/30/section/127/2023-08-01)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/127/8/2023-08-01);
- (b) [section 161](https://www.legislation.gov.uk/ukpga/2023/30/section/161/2023-08-01);
- (c) [section 162](https://www.legislation.gov.uk/ukpga/2023/30/section/162/2023-08-01);
- (d) [section 164](https://www.legislation.gov.uk/ukpga/2023/30/section/164/2023-08-01);
- (e) [section 165](https://www.legislation.gov.uk/ukpga/2023/30/section/165/2023-08-01);
- (f) [section 166](https://www.legislation.gov.uk/ukpga/2023/30/section/166/2023-08-01);
- (g) [section 187](https://www.legislation.gov.uk/ukpga/2023/30/section/187/2023-08-01);
- (h) [section 213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-08-01);
- (i) [section 214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-08-01).
- (2) An election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) applies—
- (a) must specify the first accounting period for which it is to have effect (“the first election period”),
@@ -15033,7 +15033,7 @@
- (d) has effect for the first election period and each subsequent accounting period until the commencement of the first accounting period for which a revocation of the election has effect.
- (3) A revocation of an election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) applies is to be made by the filing member of a multinational group and—
- (3) A revocation of an election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) applies is to be made by the filing member of a multinational group and—
- (a) must specify the first accounting period for which it is to have effect,
@@ -15041,37 +15041,37 @@
- (c) must be included in an information return submitted to HMRC or a qualifying authority in respect of that period.
- (4) But a revocation of an election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) applies may not be made that has effect for the first election period or any of the next 4 accounting periods.
- (5) Where an election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-07-31) applies has been revoked, no further election of the same type may be made that has effect for the first accounting period for which the revocation has effect or any of the next 4 accounting periods.
- (4) But a revocation of an election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) applies may not be made that has effect for the first election period or any of the next 4 accounting periods.
- (5) Where an election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/1/2023-08-01) applies has been revoked, no further election of the same type may be made that has effect for the first accounting period for which the revocation has effect or any of the next 4 accounting periods.
#### Annual elections
##### 2
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) applies to an election under the following provisions of Part 3—
- (a) [section 186](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-07-31);
- (b) [section 163](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-07-31);
- (c) [section 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-07-31)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/8/2023-07-31);
- (d) [section 189](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-07-31);
- (e) [section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2/2023-07-31);
- (f) [section 205](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-07-31);
- (g) [section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-07-31)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/8/2023-07-31);
- (h) [section 221](https://www.legislation.gov.uk/ukpga/2023/30/section/221/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/221/4/2023-07-31);
- (i) [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/2023-07-31)[(9)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/9/2023-07-31) of [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31);
- (j) [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-07-31) of [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31).
- (2) An election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) applies—
- (1) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) applies to an election under the following provisions of Part 3—
- (a) [section 186](https://www.legislation.gov.uk/ukpga/2023/30/section/186/2023-08-01);
- (b) [section 163](https://www.legislation.gov.uk/ukpga/2023/30/section/163/2023-08-01);
- (c) [section 182](https://www.legislation.gov.uk/ukpga/2023/30/section/182/2023-08-01)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/182/8/2023-08-01);
- (d) [section 189](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-08-01);
- (e) [section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2/2023-08-01);
- (f) [section 205](https://www.legislation.gov.uk/ukpga/2023/30/section/205/2023-08-01);
- (g) [section 217](https://www.legislation.gov.uk/ukpga/2023/30/section/217/2023-08-01)[(8)](https://www.legislation.gov.uk/ukpga/2023/30/section/217/8/2023-08-01);
- (h) [section 221](https://www.legislation.gov.uk/ukpga/2023/30/section/221/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/221/4/2023-08-01);
- (i) [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/2023-08-01)[(9)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/9/2023-08-01) of [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01);
- (j) [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-08-01) of [Schedule 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01).
- (2) An election to which [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) applies—
- (a) must specify the accounting period for which it is to have effect,
@@ -15087,7 +15087,7 @@
##### 1
- (1) [Section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/4/2023-07-31) (payroll carve-out amount) has effect for an accounting period that commences in a year listed in following table as if for “5%” there were substituted the specified percentage for that year—
- (1) [Section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/4/2023-08-01) (payroll carve-out amount) has effect for an accounting period that commences in a year listed in following table as if for “5%” there were substituted the specified percentage for that year—
| *Year* | *Specified percentage* |
| --- | --- |
@@ -15102,7 +15102,7 @@
| 2031 | 6.6% |
| 2032 | 5.8% |
- (2) [Section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/5/2023-07-31) (tangible asset carve-out amount) has effect for an accounting period that commences in a year listed in following table as if for “5%” there were substituted the specified percentage for that year—
- (2) [Section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/section/195/5/2023-08-01) (tangible asset carve-out amount) has effect for an accounting period that commences in a year listed in following table as if for “5%” there were substituted the specified percentage for that year—
| *Year* | *Specified percentage* |
| --- | --- |
@@ -15121,7 +15121,7 @@
##### 2
- (1) [Sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/3/2023-07-31) applies where—
- (1) [Sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/3/2023-08-01) applies where—
- (a) assets are transferred from one member of a multinational group to another member of that group,
@@ -15129,13 +15129,13 @@
- (i) the Pillar Two rules do not apply to the transferor for the accounting period in which the transfer takes place, or
- (ii) an election under [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/1/2023-07-31) (transitional safe harbour) applies in relation to the transferor for that period, and
- (ii) an election under [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/1/2023-08-01) (transitional safe harbour) applies in relation to the transferor for that period, and
- (c) the transfer took place on or after 1 December 2021.
- (2) But [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/3/2023-07-31) does not apply in relation to a transfer of assets manufactured, or of a class or description sold, in the course of carrying on a trade by the transferor or the transferee.
- (3) Where this sub-paragraph applies, for the purposes of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31) of this Act—
- (2) But [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/3/2023-08-01) does not apply in relation to a transfer of assets manufactured, or of a class or description sold, in the course of carrying on a trade by the transferor or the transferee.
- (3) Where this sub-paragraph applies, for the purposes of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01) of this Act—
- (a) the value of the assets at the relevant time is the carrying value of the assets in the hands of the transferor immediately before the transfer, and
@@ -15149,7 +15149,7 @@
- (i) the Pillar Two rules apply to the transferee, and
- (ii) an election under [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/1/2023-07-31) (transitional safe harbour) does not apply in relation to the transferee.
- (ii) an election under [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/1/2023-08-01) (transitional safe harbour) does not apply in relation to the transferee.
- (5) Where the relevant time is after the date of the transfer—
@@ -15159,13 +15159,13 @@
- (ii) amortisation and depreciation of the assets that, had the transfer not occurred, would have been recognised by the transferor if the transferor had continued to use the accounting policies and rates for amortisation and depreciation of the assets previously used, and
- (b) the tax paid amount in relation to the transfer of the assets is to be adjusted to reflect the matters referred to in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/5/a/2023-07-31)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/5/a/i/2023-07-31) and [(ii)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/5/a/ii/2023-07-31).
- (b) the tax paid amount in relation to the transfer of the assets is to be adjusted to reflect the matters referred to in [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/5/a/2023-08-01)[(i)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/5/a/i/2023-08-01) and [(ii)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/5/a/ii/2023-08-01).
- (6) To determine the “*tax paid amount*” in relation to a transfer of assets take the following steps—
- *Step 1* Determine the amount of the tax expense of the transferor in relation to the transfer of the assets that relates to covered taxes.
- *Step 2* Determine the amount, if any, of qualifying current tax expense relating to the transfer of the assets that would have been allocated to the transferor as a result of [section 177](https://www.legislation.gov.uk/ukpga/2023/30/section/177/2023-07-31) or [179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-07-31) (permanent establishments and controlled foreign company regimes) if— the Pillar Two rules had applied to the group in the accounting period in which the transfer occurred, and [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2/2023-07-31) (restriction of allocation of mobile income) were ignored.
- *Step 2* Determine the amount, if any, of qualifying current tax expense relating to the transfer of the assets that would have been allocated to the transferor as a result of [section 177](https://www.legislation.gov.uk/ukpga/2023/30/section/177/2023-08-01) or [179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-08-01) (permanent establishments and controlled foreign company regimes) if— the Pillar Two rules had applied to the group in the accounting period in which the transfer occurred, and [section 179](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/179/2/2023-08-01) (restriction of allocation of mobile income) were ignored.
- *Step 3* Add together the amounts determined under Steps 1 and 2.
@@ -15175,17 +15175,17 @@
- (a) dividing—
- (i) the amount of tax expense determined under Step 1 in [sub-paragraph (6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/6/2023-07-31), by
- (i) the amount of tax expense determined under Step 1 in [sub-paragraph (6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/6/2023-08-01), by
- (ii) the nominal rate of tax to which that expense relates, and
- (b) multiplying the result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/8/a/2023-07-31) by 15%.
- (9) Where, ignoring [sub-paragraph (7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/7/2023-07-31), the tax paid amount in relation to the transfer of assets would exceed the cap amount in relation to it, the filing member may elect that [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/3/2023-07-31) does not apply in relation to the transfer of assets.
- (10) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under [sub-paragraph (9)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/9/2023-07-31).
- (11) For the purposes of [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/2023-07-31), “*a transfer of assets*” includes a transaction that relates to assets that does not result in a change in their ownership if the transaction has substantially the same economic effect as a change in ownership of those assets.
- (b) multiplying the result of [paragraph (a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/8/a/2023-08-01) by 15%.
- (9) Where, ignoring [sub-paragraph (7)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/7/2023-08-01), the tax paid amount in relation to the transfer of assets would exceed the cap amount in relation to it, the filing member may elect that [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/3/2023-08-01) does not apply in relation to the transfer of assets.
- (10) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under [sub-paragraph (9)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/9/2023-08-01).
- (11) For the purposes of [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/2/2023-08-01), “*a transfer of assets*” includes a transaction that relates to assets that does not result in a change in their ownership if the transaction has substantially the same economic effect as a change in ownership of those assets.
## Part 2 — Transitional safe harbour
@@ -15209,35 +15209,35 @@
- (ii) in which the Pillar Two rules applied to members of the group in the territory,
- (d) an election under [section 189](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-07-31) (deemed distribution tax election) has not been made in respect of the territory for the accounting period, and
- (d) an election under [section 189](https://www.legislation.gov.uk/ukpga/2023/30/section/189/2023-08-01) (deemed distribution tax election) has not been made in respect of the territory for the accounting period, and
- (e) at least one of the following tests are met for the territory in accounting period—
- (i) the threshold test (see [paragraph 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-07-31)),
- (ii) the simplified effective tax rate test (see [paragraph 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/8/2023-07-31)), or
- (iii) the routine profits test (see [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-07-31)).
- (3) An election may not be made in respect of the territory of the ultimate parent of a multinational group for an accounting period if the ultimate parent is a flow-through entity unless, were the adjusted profits of the ultimate parent determined for that period in accordance with [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31)—
- (a) its adjusted profits would be nil as a result of the application of [section 170](https://www.legislation.gov.uk/ukpga/2023/30/section/170/2023-07-31) (adjustments for ultimate parent that is a flow-through entity), or
- (b) all of the ultimate parent’s adjusted profits would be attributable to one or more permanent establishments (see [section 159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-07-31)) and no amount of income or expense of any permanent establishment would be treated, as a result of [section 160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-07-31) (attribution of losses between permanent establishment and main entity), as income or expense of the ultimate parent.
- (4) Where a multinational group was not a qualifying multinational group in an accounting period only as a result of not meeting condition B in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/3/2023-07-31) (requirement that at least one member is located in the United Kingdom), the condition in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/c/2023-07-31) is to be treated as met in relation to that period if an election corresponding to an election under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-07-31) has been made in respect of the territory for the purposes of a tax imposed by a Pillar Two territory that is equivalent to multinational top-up tax.
- (5) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-07-31) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-07-31) (annual elections) applies to an election under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-07-31).
- (6) The information return in which the election is made must set out which of the tests referred to in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/2023-07-31)[(e)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/e/2023-07-31) are being relied on and include evidence of how any that is relied on is met.
- (7) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31) “*qualifying country-by-country report*” in relation to a territory means a country-by-country report in respect of a multinational group—
- (i) the threshold test (see [paragraph 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-08-01)),
- (ii) the simplified effective tax rate test (see [paragraph 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/8/2023-08-01)), or
- (iii) the routine profits test (see [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-08-01)).
- (3) An election may not be made in respect of the territory of the ultimate parent of a multinational group for an accounting period if the ultimate parent is a flow-through entity unless, were the adjusted profits of the ultimate parent determined for that period in accordance with [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01)—
- (a) its adjusted profits would be nil as a result of the application of [section 170](https://www.legislation.gov.uk/ukpga/2023/30/section/170/2023-08-01) (adjustments for ultimate parent that is a flow-through entity), or
- (b) all of the ultimate parent’s adjusted profits would be attributable to one or more permanent establishments (see [section 159](https://www.legislation.gov.uk/ukpga/2023/30/section/159/2023-08-01)) and no amount of income or expense of any permanent establishment would be treated, as a result of [section 160](https://www.legislation.gov.uk/ukpga/2023/30/section/160/2023-08-01) (attribution of losses between permanent establishment and main entity), as income or expense of the ultimate parent.
- (4) Where a multinational group was not a qualifying multinational group in an accounting period only as a result of not meeting condition B in [section 129](https://www.legislation.gov.uk/ukpga/2023/30/section/129/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/section/129/3/2023-08-01) (requirement that at least one member is located in the United Kingdom), the condition in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/c/2023-08-01) is to be treated as met in relation to that period if an election corresponding to an election under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-08-01) has been made in respect of the territory for the purposes of a tax imposed by a Pillar Two territory that is equivalent to multinational top-up tax.
- (5) [Paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/paragraph/2/2023-08-01) of [Schedule 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/15/2023-08-01) (annual elections) applies to an election under [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-08-01).
- (6) The information return in which the election is made must set out which of the tests referred to in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/2023-08-01)[(e)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/e/2023-08-01) are being relied on and include evidence of how any that is relied on is met.
- (7) In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01) “*qualifying country-by-country report*” in relation to a territory means a country-by-country report in respect of a multinational group—
- (a) that is in accordance with the OECD's guidance on country-by-country reporting (within the meaning of section 122 of FA 2015),
- (b) that is filed in accordance with legislation implementing that guidance, and
- (c) in which information relating to the territory is prepared on the basis of qualified financial statements of the multinational group (see [paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2023-07-31)).
- (c) in which information relating to the territory is prepared on the basis of qualified financial statements of the multinational group (see [paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2023-08-01)).
- (8) Reference to a qualifying country-by-country report in respect of a multinational group that is a multi-parent group is reference to a report in respect of all of the constituent groups.
@@ -15245,7 +15245,7 @@
##### 4
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31) “qualified financial statements” of a multinational group means—
- (1) For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01) “qualified financial statements” of a multinational group means—
- (a) the accounts used to prepare the consolidated financial statement of the ultimate parent, or
@@ -15253,13 +15253,13 @@
- (2) Where a member of a multinational group is not included in consolidated financial statements of any member of the group on a line-by-line basis solely due to size or materiality grounds, the financial accounts of that member that are used for preparation of the group’s country-by-country report are to be regarded as forming part of the qualified financial statements of the group.
- (3) For the purposes of establishing whether the tests in [paragraphs 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-07-31) to [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-07-31) are met in relation to members of a multinational group in a territory, the basis for that determination is to be the information derived from qualified financial statements as to—
- (3) For the purposes of establishing whether the tests in [paragraphs 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-08-01) to [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-08-01) are met in relation to members of a multinational group in a territory, the basis for that determination is to be the information derived from qualified financial statements as to—
- (a) revenue,
- (b) profit (loss) before income tax, and
- (c) qualifying income tax expense (see [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/5/2023-07-31)).
- (c) qualifying income tax expense (see [paragraph 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/5/2023-08-01)).
- (4) Information derived from qualified financial statements as to revenue or profit (loss) before income tax must be adjusted—
@@ -15267,13 +15267,13 @@
- (b) if the information was not included in such a report, as it would have been adjusted had it been included in such a report.
See also [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/6/2023-07-31) which provides for circumstances in which further adjustments are required to profit (loss) before income tax and circumstances in which adjustments are required to qualifying income tax expense.
- (5) The information described in [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/3/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/3/a/2023-07-31) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/3/c/2023-07-31) that must be used to determine whether the tests in [paragraphs 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-07-31) to [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-07-31) are met in relation to members of a multinational group in a territory must be derived from whichever of the following was used to prepare the qualifying country-by-country report in relation to the territory—
- (a) qualified financial statements falling within [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/1/a/2023-07-31), along with any financial accounts treated as qualified financial statements as a result of [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2/2023-07-31), or
- (b) qualified financial statements falling within [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/1/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/1/b/2023-07-31), along with any financial accounts treated as qualified financial statements as a result of [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2/2023-07-31).
See also [paragraph 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/6/2023-08-01) which provides for circumstances in which further adjustments are required to profit (loss) before income tax and circumstances in which adjustments are required to qualifying income tax expense.
- (5) The information described in [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/3/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/3/a/2023-08-01) to [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/3/c/2023-08-01) that must be used to determine whether the tests in [paragraphs 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-08-01) to [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-08-01) are met in relation to members of a multinational group in a territory must be derived from whichever of the following was used to prepare the qualifying country-by-country report in relation to the territory—
- (a) qualified financial statements falling within [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/1/a/2023-08-01), along with any financial accounts treated as qualified financial statements as a result of [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2/2023-08-01), or
- (b) qualified financial statements falling within [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/1/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/1/b/2023-08-01), along with any financial accounts treated as qualified financial statements as a result of [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2/2023-08-01).
- (6) Where that information in respect of a territory is not available in qualified financial statements of a multinational group, no election may be made in respect of that territory.
@@ -15281,7 +15281,7 @@
##### 5
In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31), “*qualifying income tax expense*” means income tax expense adjusted to exclude—
In [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01), “*qualifying income tax expense*” means income tax expense adjusted to exclude—
- (a) any amount that does not relate to covered taxes, and
@@ -15291,11 +15291,11 @@
##### 6
- (1) [Sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2/2023-07-31) applies where the adjusted profits of the ultimate parent of a multinational group for an accounting period would be reduced as a result of [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/1/2023-07-31) (ultimate parent subject to deductible dividend regime).
- (2) Where this sub-paragraph applies the profit (loss) before income tax of the ultimate parent for that period is to be reduced (but not below nil) by the amount referred to in [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/1/2023-07-31).
- (3) [Sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/6/4/2023-07-31) applies where—
- (1) [Sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2/2023-08-01) applies where the adjusted profits of the ultimate parent of a multinational group for an accounting period would be reduced as a result of [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/1/2023-08-01) (ultimate parent subject to deductible dividend regime).
- (2) Where this sub-paragraph applies the profit (loss) before income tax of the ultimate parent for that period is to be reduced (but not below nil) by the amount referred to in [section 171](https://www.legislation.gov.uk/ukpga/2023/30/section/171/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/section/171/1/2023-08-01).
- (3) [Sub-paragraph (4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/6/4/2023-08-01) applies where—
- (a) the standard members of a multinational group in a territory have a net unrealised fair value loss for an accounting period, and
@@ -15303,7 +15303,7 @@
- (4) Where this sub-paragraph applies, those losses are to be excluded from the aggregate profit (loss) before income tax of those members.
- (5) For the purposes of [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/6/3/2023-07-31), the standard members of a multinational group in a territory have a net unrealised fair value loss for an accounting period to the extent their losses that arise from changes in fair value of relevant ownership interests exceed gains arising from changes in fair value of relevant ownership interests.
- (5) For the purposes of [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/6/3/2023-08-01), the standard members of a multinational group in a territory have a net unrealised fair value loss for an accounting period to the extent their losses that arise from changes in fair value of relevant ownership interests exceed gains arising from changes in fair value of relevant ownership interests.
- (6) An ownership interest in an entity is relevant if, at the end of the accounting period, the members of the multinational group do not between them have ownership interests that entitle them to 10% or more of the entity’s —
@@ -15315,9 +15315,9 @@
- (d) voting rights.
- (7) Amounts of profits and qualifying tax expense allocated, for the purposes of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), to a member of a multinational group from an investment entity as a result of an election under [section 213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-07-31) (investment entity tax transparency election) are to be reflected (to the extent they are not already) in the member’s profit (loss) before income tax and qualifying tax expense used for the purposes of applying the tests in [paragraphs 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-07-31) to [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-07-31).
- (8) Amounts that are to be included or otherwise taken account of, for the purposes of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-07-31), in the adjusted profits and covered tax balance of a member of a multinational group as a result of an election under [section 214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-07-31) (taxable distribution method election) are to be reflected (to the extent they are not already) in the member’s profit (loss) before income tax and qualifying tax expense used for the purposes of applying the tests in [paragraphs 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-07-31) to [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-07-31).
- (7) Amounts of profits and qualifying tax expense allocated, for the purposes of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), to a member of a multinational group from an investment entity as a result of an election under [section 213](https://www.legislation.gov.uk/ukpga/2023/30/section/213/2023-08-01) (investment entity tax transparency election) are to be reflected (to the extent they are not already) in the member’s profit (loss) before income tax and qualifying tax expense used for the purposes of applying the tests in [paragraphs 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-08-01) to [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-08-01).
- (8) Amounts that are to be included or otherwise taken account of, for the purposes of [Part 3](https://www.legislation.gov.uk/ukpga/2023/30/part/3/2023-08-01), in the adjusted profits and covered tax balance of a member of a multinational group as a result of an election under [section 214](https://www.legislation.gov.uk/ukpga/2023/30/section/214/2023-08-01) (taxable distribution method election) are to be reflected (to the extent they are not already) in the member’s profit (loss) before income tax and qualifying tax expense used for the purposes of applying the tests in [paragraphs 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/2023-08-01) to [9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-08-01).
#### Threshold test
@@ -15329,7 +15329,7 @@
- (b) the aggregate profit (loss) before income tax of those members for that period is less than 1 million euros.
- (2) Where those members include members that are held for sale and the revenue of those members is not otherwise included in the amount determined for the purposes of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/1/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/1/a/2023-07-31), that revenue is to be so included.
- (2) Where those members include members that are held for sale and the revenue of those members is not otherwise included in the amount determined for the purposes of [sub-paragraph (1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/1/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/7/1/a/2023-08-01), that revenue is to be so included.
#### Simplified effective tax rate test
@@ -15359,7 +15359,7 @@
- (b) the aggregate profit (loss) before income tax of those members for that period is nil or reflects an overall loss.
- (2) The “qualified substance based income exclusion amount” for a territory for an accounting period is the substance based exclusion determined for the territory for the period in accordance with [section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-07-31) (and see also [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/1/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31)) ignoring any payroll carve-out amount or tangible asset carve-out amount of any standard member of the group in that territory—
- (2) The “qualified substance based income exclusion amount” for a territory for an accounting period is the substance based exclusion determined for the territory for the period in accordance with [section 195](https://www.legislation.gov.uk/ukpga/2023/30/section/195/2023-08-01) (and see also [paragraph 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/1/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01)) ignoring any payroll carve-out amount or tangible asset carve-out amount of any standard member of the group in that territory—
- (a) that is not regarded as a constituent entity of the multinational group for the purposes of the group’s country-by-country report, or
@@ -15371,13 +15371,13 @@
##### 10
For the purpose of applying [Chapter 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/chapter/1/2023-07-31) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31) to a joint venture group (see [section 226](https://www.legislation.gov.uk/ukpga/2023/30/section/226/2023-07-31) which applies [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31) generally, with modifications, to joint venture groups)—
- (a) [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/2023-07-31)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/c/2023-07-31) were omitted (requirement for qualifying country-by-country report),
- (b) the reference in [paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2/2023-07-31) to “the financial accounts of that member that are used for preparation of the group’s country-by-country report” were to the financial accounts that would be used if a qualifying country-by-country report had been prepared in respect of the joint venture group, and
- (c) in [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2/2023-07-31), the words from “ignoring” to the end were omitted.
For the purpose of applying [Chapter 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/chapter/1/2023-08-01) of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01) to a joint venture group (see [section 226](https://www.legislation.gov.uk/ukpga/2023/30/section/226/2023-08-01) which applies [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01) generally, with modifications, to joint venture groups)—
- (a) [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/2023-08-01)[(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/3/2/c/2023-08-01) were omitted (requirement for qualifying country-by-country report),
- (b) the reference in [paragraph 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/4/2/2023-08-01) to “the financial accounts of that member that are used for preparation of the group’s country-by-country report” were to the financial accounts that would be used if a qualifying country-by-country report had been prepared in respect of the joint venture group, and
- (c) in [paragraph 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/9/2/2023-08-01), the words from “ignoring” to the end were omitted.
#### Application to investment entities in same territory as owners
@@ -15391,13 +15391,13 @@
are located in the same territory.
- (2) The investment entity is to be treated as a standard member of that group for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31).
- (2) The investment entity is to be treated as a standard member of that group for the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01).
#### Minority owned members
##### 12
For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-07-31) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-07-31), references to the standard members of a multinational group include minority owned members.
For the purposes of [this Part](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/part/2/2023-08-01) of [this Schedule](https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/2023-08-01), references to the standard members of a multinational group include minority owned members.
## Schedule 17
@@ -15409,29 +15409,29 @@
- (1) The Commissioners for His Majesty’s Revenue and Customs are responsible for the collection and management of domestic top-up tax.
- (2) This Schedule applies (with modifications) [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) (administration of multinational top-up tax) for the purposes of administering domestic top-up tax.
- (2) This Schedule applies (with modifications) [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) (administration of multinational top-up tax) for the purposes of administering domestic top-up tax.
#### Meaning of “filing member”
##### 2
Part [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/2/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) applies, save that—
- (a) where a qualifying entity is not part of a group, Part [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/2/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) does not apply, and references to “filing member” in [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) apply as if they were references to the qualifying entity;
Part [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/2/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) applies, save that—
- (a) where a qualifying entity is not part of a group, Part [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/2/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) does not apply, and references to “filing member” in [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) apply as if they were references to the qualifying entity;
- (b) where a qualifying entity is part of a group—
- (i) references to a “multinational group” apply as if they were references to a group;
- (ii) the reference in paragraph [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/4/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/4/a/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) to this Schedule applies as if it were a reference to [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31).
- (ii) the reference in paragraph [2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/4/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/2/4/a/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) to this Schedule applies as if it were a reference to [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01).
#### Registration
##### 3
Part [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) applies as if—
- (a) for paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/1/2023-07-31) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2/2023-07-31) there were substituted—
Part [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) applies as if—
- (a) for paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/1/2023-08-01) and [(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2/2023-08-01) there were substituted—
> (1) A filing member must register with HMRC if the filing member or, if the filing member is a member of a group, a member of that group—
> (a) is located in the United Kingdom and
@@ -15446,7 +15446,7 @@
##### 4
- (1) Subject to paragraph [5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/5/2023-07-31), Parts [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/4/2023-07-31) to [12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) apply as if—
- (1) Subject to paragraph [5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/5/2023-08-01), Parts [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/4/2023-08-01) to [12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/12/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) apply as if—
- (a) references to “multinational top-up tax” were to domestic top-up tax;
@@ -15454,30 +15454,30 @@
- (c) references to a “multinational group” were references to a group;
- (d) where an entity registered under Part [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-07-31) of that Schedule (or which should have been registered) is not part of a group—
- (d) where an entity registered under Part [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/3/2023-08-01) of that Schedule (or which should have been registered) is not part of a group—
- (i) references to a group or its members (however framed) were references to the entity or an entity (as the context requires);
- (ii) references to “the filing member of a group” were references to the entity.
- (2) In particular, the Treasury’s power to make regulations under paragraph [39](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/39/2023-07-31) applies in relation to payments of domestic top-up tax.
- (2) In particular, the Treasury’s power to make regulations under paragraph [39](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/39/2023-08-01) applies in relation to payments of domestic top-up tax.
##### 5
- (1) In Part [11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/11/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) (penalties), only paragraphs [40](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/b/2023-07-31), [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/c/2023-07-31) and [(e)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/e/2023-07-31), [42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-07-31) to [44](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/44/2023-07-31), and [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-07-31) to [50](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/50/2023-07-31) apply.
- (2) The reference in paragraph [38](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/38/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) (as applied by paragraph [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/4/2023-07-31)) to a penalty referred to in paragraph [40](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/2023-07-31) of that Schedule applies as if, instead of referring to the penalties referred to in paragraph [40](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/2023-07-31)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/a/2023-07-31), [(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/b/2023-07-31) and [(d)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/d/2023-07-31) of that Schedule, it referred to the penalties inserted by paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/6/2023-07-31).
- (1) In Part [11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/part/11/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) (penalties), only paragraphs [40](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/b/2023-08-01), [(c)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/c/2023-08-01) and [(e)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/e/2023-08-01), [42](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/42/2023-08-01) to [44](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/44/2023-08-01), and [46](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/46/2023-08-01) to [50](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/50/2023-08-01) apply.
- (2) The reference in paragraph [38](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/38/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) (as applied by paragraph [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/4/2023-08-01)) to a penalty referred to in paragraph [40](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/2023-08-01) of that Schedule applies as if, instead of referring to the penalties referred to in paragraph [40](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/2023-08-01)[(a)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/a/2023-08-01), [(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/b/2023-08-01) and [(d)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/40/d/2023-08-01) of that Schedule, it referred to the penalties inserted by paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/6/2023-08-01).
#### Amendments: penalties
##### 6
- (1) In paragraph 1 of Schedule 41 to FA 2008 (penalties for failure to notify etc), in the table after the entry relating to multinational top-up tax (as inserted by paragraph [41](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/41/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)), insert—
| Domestic top-up tax | Obligation of a filing member to register under paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) to F(No.2)A 2023, as applied by paragraph [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/3/2023-07-31) of [Schedule 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/2023-07-31) to F(No.2)A 2023 |
- (1) In paragraph 1 of Schedule 41 to FA 2008 (penalties for failure to notify etc), in the table after the entry relating to multinational top-up tax (as inserted by paragraph [41](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/41/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)), insert—
| Domestic top-up tax | Obligation of a filing member to register under paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/6/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) to F(No.2)A 2023, as applied by paragraph [3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/3/2023-08-01) of [Schedule 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/2023-08-01) to F(No.2)A 2023 |
| --- | --- |
- (2) In paragraph 1 of Schedule 24 to FA 2007 (penalties for errors etc), in the table after the entry relating to multinational top-up tax (as inserted by paragraph [45](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/45/2023-07-31)of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)), insert—
- (2) In paragraph 1 of Schedule 24 to FA 2007 (penalties for errors etc), in the table after the entry relating to multinational top-up tax (as inserted by paragraph [45](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/45/2023-08-01)of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)), insert—
| Domestic top-up tax | Overseas return notification and information provided with it |
| --- | --- |
@@ -15488,17 +15488,17 @@
##### 7
- (1) In section 1(1) of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions affecting income tax etc) after “*multinational top-up tax,*” (as inserted by paragraph [68](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2023-07-31)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/1/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)) insert “domestic top-up tax,”.
- (2) In section 178(2) of FA 1989 (setting of interest rates), after paragraph (x) (as inserted by paragraph [68](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2023-07-31)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)) insert—
> (y) paragraphs [33](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/33/2023-07-31) and [51](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31) to the Finance (No.2) Act 2023, as applied in relation to domestic top-up tax by paragraph [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/4/2023-07-31) of [Schedule 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/2023-07-31) to that Act.
- (3) In paragraph 63(1) of Schedule 36 to FA 2008 (information and inspection powers), after paragraph (cd) (as inserted by paragraph [68](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2023-07-31)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/3/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)) insert—
- (1) In section 1(1) of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions affecting income tax etc) after “*multinational top-up tax,*” (as inserted by paragraph [68](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2023-08-01)[(1)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/1/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)) insert “domestic top-up tax,”.
- (2) In section 178(2) of FA 1989 (setting of interest rates), after paragraph (x) (as inserted by paragraph [68](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2023-08-01)[(2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)) insert—
> (y) paragraphs [33](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/33/2023-08-01) and [51](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/51/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01) to the Finance (No.2) Act 2023, as applied in relation to domestic top-up tax by paragraph [4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/paragraph/4/2023-08-01) of [Schedule 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/18/2023-08-01) to that Act.
- (3) In paragraph 63(1) of Schedule 36 to FA 2008 (information and inspection powers), after paragraph (cd) (as inserted by paragraph [68](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2023-08-01)[(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/3/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)) insert—
> (ce) domestic top-up tax;
- (4) In section 206(3) of FA 2013, after paragraph (h) (as inserted by paragraph [68](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/4/2023-07-31) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-07-31)) insert—
- (4) In section 206(3) of FA 2013, after paragraph (h) (as inserted by paragraph [68](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/68/4/2023-08-01) of [Schedule 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/2023-08-01)) insert—
> (i) domestic top-up tax.
@@ -15822,7 +15822,7 @@
##### 7
After paragraph 22A (as inserted by paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/19/paragraph/6/2023-07-31)) insert—
After paragraph 22A (as inserted by paragraph [6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/19/paragraph/6/2023-08-01)) insert—
> (22B)
> (1) The Secretary of State may request that the TRA give advice, information or other support to the Secretary of State for the purpose of allowing the Secretary of State to decide whether to make a decision under any of the following—
@@ -16190,7 +16190,7 @@
##### 14
After paragraph 22A (as inserted by paragraph [13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/19/paragraph/13/2023-07-31)) insert—
After paragraph 22A (as inserted by paragraph [13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/19/paragraph/13/2023-08-01)) insert—
> (22B)
> (1) The Secretary of State may request that the TRA give advice, information or other support to the Secretary of State for the purpose of allowing the Secretary of State to decide whether to make a decision under any of the following—
@@ -16245,7 +16245,7 @@
- (3) The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Schedule.
- (4) The power to make regulations under sub-paragraph [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/19/paragraph/17/3/2023-07-31) includes power to make different provision for different purposes.
- (4) The power to make regulations under sub-paragraph [(3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/19/paragraph/17/3/2023-08-01) includes power to make different provision for different purposes.
- (5) Regulations under this paragraph are to be made by statutory instrument.
@@ -16973,7 +16973,7 @@
> (2A) For the purposes of this section “*the applicable sunset date*”, in relation to a special tax site, means —
> (a) 5 April 2026, or
> (b) such later date as may be specified under [section 332](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-07-31)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/b/2023-07-31)of the Finance (No.2) Act 2023 as the applicable sunset date in relation to the site concerned for the purposes of the provisions mentioned in subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-07-31) of that section.
> (b) such later date as may be specified under [section 332](https://www.legislation.gov.uk/ukpga/2023/30/section/332/2023-08-01)[(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/b/2023-08-01)of the Finance (No.2) Act 2023 as the applicable sunset date in relation to the site concerned for the purposes of the provisions mentioned in subsection [(4)](https://www.legislation.gov.uk/ukpga/2023/30/section/332/4/2023-08-01) of that section.
,
@@ -17029,7 +17029,7 @@
- (b) providing accommodation to a person granted entry clearance or permission to stay under that scheme.
- (2) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/1/2023-07-31) has effect in relation to payments made on or after 14 March 2022.
- (2) [This paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/1/2023-08-01) has effect in relation to payments made on or after 14 March 2022.
#### Annual tax on enveloped dwellings
@@ -17066,7 +17066,7 @@
.
- (6) The modifications made by [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/2/2023-07-31) have effect in relation to days falling in the period—
- (6) The modifications made by [this paragraph](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/2/2023-08-01) have effect in relation to days falling in the period—
- (a) beginning with 1 April 2022, and
@@ -17099,13 +17099,13 @@
.
- (5) The modification made by [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/2/2023-07-31) has effect in relation to any land transaction the effective date of which is in the period—
- (5) The modification made by [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/2/2023-08-01) has effect in relation to any land transaction the effective date of which is in the period—
- (a) beginning with 31 March 2022, and
- (b) ending with such date as may be specified in regulations made by the Treasury by statutory instrument.
- (6) The modifications made by [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/3/2023-07-31)and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/4/2023-07-31) have effect in relation to any time in the period mentioned in [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/5/2023-07-31).
- (6) The modifications made by [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/3/2023-08-01)and [(4)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/4/2023-08-01) have effect in relation to any time in the period mentioned in [sub-paragraph (5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/5/2023-08-01).
#### Regulations
@@ -17113,9 +17113,9 @@
A statutory instrument containing regulations under the following provisions of this Schedule may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons—
- (a) [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/2/2023-07-31)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/2/6/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/2/6/b/2023-07-31);
- (b) [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/2023-07-31)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/5/2023-07-31)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/5/b/2023-07-31).
- (a) [paragraph 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/2/2023-08-01)[(6)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/2/6/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/2/6/b/2023-08-01);
- (b) [paragraph 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/2023-08-01)[(5)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/5/2023-08-01)[(b)](https://www.legislation.gov.uk/ukpga/2023/30/schedule/24/paragraph/3/5/b/2023-08-01).
#### Income tax charge for tax year 2023-24
@@ -17203,9 +17203,9 @@
#### Relief on disposal of joint interests in land
#### Meaning of “alcoholic product”
#### Small producer relief: discounted rates
#### Alcoholic strength
#### Small producer alcoholic products
#### Introduction to multinational top-up tax
@@ -17633,7 +17633,7 @@
#### Right to repayment of income tax to be inalienable
#### Late payment interest on value added tax
#### Penalties for failure to pay value added tax
#### VAT credits: repayment interest due where evidence not provided
@@ -17807,7 +17807,7 @@
#### Information and inspection powers
#### Spirits
#### Beer
#### Timing of payments
@@ -17877,10 +17877,10 @@
#### Amendments: penalties
#### Notification etc
#### Introduction
#### Introduction
#### Meaning of “soft drink” and “package”
#### Meaning of “prepared drinks”
@@ -18261,10 +18261,262 @@
[^key-1fe1c8c07ce09f0df78efc17ea6d1d13]: [S. 86(2)(a)(i)](https://www.legislation.gov.uk/ukpga/2023/30/section/86/2/a/i) modified (31.7.2023) by [The Finance (No. 2) Act 2023, Part 2 (Alcohol Duty) (Appointed Day, Savings, Consequential Amendments and Transitional Provisions) Regulations 2023 (S.I. 2023/884)](https://www.legislation.gov.uk/uksi/2023/884), [reg. 6](https://www.legislation.gov.uk/uksi/2023/884/regulation/6)
[^key-d5054d5e0e81230776fbda4e8e0e6a3b]: [S. 44](https://www.legislation.gov.uk/ukpga/2023/30/section/44) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-64fdcfd7173ace60b4710e7f9de563b3]: [S. 45](https://www.legislation.gov.uk/ukpga/2023/30/section/45) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-5c5d605c3ca4b56bc43ba5cdb1838a02]: [S. 46](https://www.legislation.gov.uk/ukpga/2023/30/section/46) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-e934d09b551a3c16fbc5cede5cc9f874]: [S. 47](https://www.legislation.gov.uk/ukpga/2023/30/section/47) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-3197d62b8fc91596e999cdd5f70d0284]: [S. 48](https://www.legislation.gov.uk/ukpga/2023/30/section/48) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-7a16eb6e455e060a67dc4d264914c623]: [S. 49](https://www.legislation.gov.uk/ukpga/2023/30/section/49) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-e385ac565b68e23ef12d97d49628aadb]: [S. 50](https://www.legislation.gov.uk/ukpga/2023/30/section/50) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-65e4fff0b75c536c98a7ecbb20458dad]: [S. 51](https://www.legislation.gov.uk/ukpga/2023/30/section/51) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-a7886b72df5dc341d6fcb6395a3b904b]: [S. 52](https://www.legislation.gov.uk/ukpga/2023/30/section/52) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-a292d9169196bd62bc3f2b64b358965d]: [S. 53](https://www.legislation.gov.uk/ukpga/2023/30/section/53) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-449847c547caf5dac0ac2aff7344d697]: [S. 54](https://www.legislation.gov.uk/ukpga/2023/30/section/54) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-d312e0ee56aad296566c030d34fd213d]: [S. 55](https://www.legislation.gov.uk/ukpga/2023/30/section/55) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9b276943883c9181890435883047f4b1]: [S. 56](https://www.legislation.gov.uk/ukpga/2023/30/section/56) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-1cfa6f24323617684622aced00279385]: [S. 57](https://www.legislation.gov.uk/ukpga/2023/30/section/57) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-caefa54031483b343f91834f3bc006de]: [S. 58](https://www.legislation.gov.uk/ukpga/2023/30/section/58) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-c1b77236c9734e17d499e35771d9be74]: [S. 59](https://www.legislation.gov.uk/ukpga/2023/30/section/59) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-e402dbe988655eb5be8a1ca628031854]: [S. 60](https://www.legislation.gov.uk/ukpga/2023/30/section/60) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-fe6ff50d428f897ee6a83ba6aa24682c]: [S. 61](https://www.legislation.gov.uk/ukpga/2023/30/section/61) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-c6ec37782a14be2ae7ad3e28b4fcccd7]: [S. 62](https://www.legislation.gov.uk/ukpga/2023/30/section/62) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-db33d15da8ad6b0859984a1cf83d9268]: [S. 63](https://www.legislation.gov.uk/ukpga/2023/30/section/63) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-a513a8c5c7394c4dfbc5cc1d6f960bb9]: [S. 64](https://www.legislation.gov.uk/ukpga/2023/30/section/64) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-1c996cb7c9ea6c84ae05dd87f6ec781b]: [S. 65](https://www.legislation.gov.uk/ukpga/2023/30/section/65) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9eaba4fab0f3a22111507ebc7b2001a6]: [S. 66](https://www.legislation.gov.uk/ukpga/2023/30/section/66) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-889e24477c51ccbde258e174e38fa295]: [S. 67](https://www.legislation.gov.uk/ukpga/2023/30/section/67) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9a01e9f023f63b1763321e3e3fa8902a]: [S. 68](https://www.legislation.gov.uk/ukpga/2023/30/section/68) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-8fc59b596be5adddfeeaa75efb510307]: [S. 69](https://www.legislation.gov.uk/ukpga/2023/30/section/69) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-4eacc12cf663bc1a815c673212c33552]: [S. 70](https://www.legislation.gov.uk/ukpga/2023/30/section/70) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-df384d9d814fbea5d21833def0efe120]: [S. 71](https://www.legislation.gov.uk/ukpga/2023/30/section/71) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-cbe2883f5132518432647c619c77b872]: [S. 72](https://www.legislation.gov.uk/ukpga/2023/30/section/72) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-eefa310ee3409c9c47f1e5ce57778ff5]: [S. 73](https://www.legislation.gov.uk/ukpga/2023/30/section/73) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-ffe5681e45ed39fc50ea751bf4707074]: [S. 75](https://www.legislation.gov.uk/ukpga/2023/30/section/75) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-c1735c01d69791973523da215562c38d]: [S. 76](https://www.legislation.gov.uk/ukpga/2023/30/section/76) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9904e2d89934802f273d72b1f2cc28ba]: [S. 77](https://www.legislation.gov.uk/ukpga/2023/30/section/77) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9e983452a3911e6da34c639e3cdbef82]: [S. 78](https://www.legislation.gov.uk/ukpga/2023/30/section/78) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-84618979dde4e60dc2316c43c8e2bd3d]: [S. 79](https://www.legislation.gov.uk/ukpga/2023/30/section/79) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9224a597c0a684f3e62e92b7c9b3118d]: [S. 80](https://www.legislation.gov.uk/ukpga/2023/30/section/80) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-0110e2953bce3e03419033b2e6be144d]: [S. 81](https://www.legislation.gov.uk/ukpga/2023/30/section/81) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(b)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/b) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-8d2dae04e62abd3cc8d1fe19cd2b374d]: [S. 86](https://www.legislation.gov.uk/ukpga/2023/30/section/86) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(c)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/c) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-933d68ba5380d4caf322ea07b49aaaad]: [S. 87](https://www.legislation.gov.uk/ukpga/2023/30/section/87) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(c)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/c) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-fe94682ffabf016c662046cd7eba33e6]: [S. 88](https://www.legislation.gov.uk/ukpga/2023/30/section/88) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(c)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/c) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-25a7834607a037e2ae86c37c68a5fb05]: [S. 89](https://www.legislation.gov.uk/ukpga/2023/30/section/89) in force at 1.8.2023 for specified purposes by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(d)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/d) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-fc6f0209f4ae3e52dc5d3fe8e404b0ec]: [S. 90](https://www.legislation.gov.uk/ukpga/2023/30/section/90) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-d814798a0df620a16265c6d4afa2019a]: [S. 91](https://www.legislation.gov.uk/ukpga/2023/30/section/91) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-ca7e8bd2d54a6a7b5e019d12fc7fcbed]: [S. 92](https://www.legislation.gov.uk/ukpga/2023/30/section/92) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-cb5e3467a6f27ae8895b038e9614d009]: [S. 93](https://www.legislation.gov.uk/ukpga/2023/30/section/93) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9aac12f6fde49081da075e8e0c489c68]: [S. 94](https://www.legislation.gov.uk/ukpga/2023/30/section/94) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-971115cfaa4bf9824498338162ca3b15]: [S. 95](https://www.legislation.gov.uk/ukpga/2023/30/section/95) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-134b77f6b63ace407e993578cb70bf20]: [S. 96](https://www.legislation.gov.uk/ukpga/2023/30/section/96) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-690bb9198066eac08808e0b7961b96e0]: [S. 97](https://www.legislation.gov.uk/ukpga/2023/30/section/97) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-1e63eda71dea3c1c735bb77387939ac2]: [S. 98](https://www.legislation.gov.uk/ukpga/2023/30/section/98) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-1cc602ad58cba56106286ef56cf46381]: [S. 99](https://www.legislation.gov.uk/ukpga/2023/30/section/99) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-47c1c5a51cc03775722ff581fa470d88]: [S. 100](https://www.legislation.gov.uk/ukpga/2023/30/section/100) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-3eadc972befe32968356ba3b7e5a4cd5]: [S. 101](https://www.legislation.gov.uk/ukpga/2023/30/section/101) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-6f18ee21b55d8f5aabd8eac1a195b84b]: [S. 102](https://www.legislation.gov.uk/ukpga/2023/30/section/102) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-73779420378539ccbf824a88346aaa81]: [S. 103](https://www.legislation.gov.uk/ukpga/2023/30/section/103) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-dce1bb3c82219606b154feb062057371]: [S. 104](https://www.legislation.gov.uk/ukpga/2023/30/section/104) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-3e7b5106879eca38079b552f54068946]: [S. 105](https://www.legislation.gov.uk/ukpga/2023/30/section/105) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-4dcc66077f56b23bc36210c94180834a]: [S. 106](https://www.legislation.gov.uk/ukpga/2023/30/section/106) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-a3d73e4e790b2e51214a28d2f247ba65]: [S. 107](https://www.legislation.gov.uk/ukpga/2023/30/section/107) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-5a1a26c5b8b19721b459ab1c3e926863]: [S. 108](https://www.legislation.gov.uk/ukpga/2023/30/section/108) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(f)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/f) (with [reg. 3(2)-(4)](https://www.legislation.gov.uk/uksi/2023/884/regulation/3/2), [10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-ed7be56dd3d082739a44df01cb54b429]: [S. 109](https://www.legislation.gov.uk/ukpga/2023/30/section/109) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(g)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/g) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9779e9e167473385a7a4013d112bf87f]: [S. 112](https://www.legislation.gov.uk/ukpga/2023/30/section/112) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-b4334ac1cc3694b858f9ce95fae37e99]: [S. 113](https://www.legislation.gov.uk/ukpga/2023/30/section/113) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(i)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/i) (with [regs. 3(1)](https://www.legislation.gov.uk/uksi/2023/884/regulation/3/1), [4](https://www.legislation.gov.uk/uksi/2023/884/regulation/4), [9](https://www.legislation.gov.uk/uksi/2023/884/regulation/9), [10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-0f4490d713bc25fd25a42d1ced1a304e]: [S. 114](https://www.legislation.gov.uk/ukpga/2023/30/section/114) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-e72d38a9dd587cccb97b474ad95dcc50]: [S. 115](https://www.legislation.gov.uk/ukpga/2023/30/section/115) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(k)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/k) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-ddc9d5d8f321d0825c8f7a9398333456]: [S. 116](https://www.legislation.gov.uk/ukpga/2023/30/section/116) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(k)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/k) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-367d273ebe09ca201ab5152afc492ec7]: [Sch. 6 para. 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/1) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-f3e0c431e26e4da01158c4ef8cd119cb]: [Sch. 6 para. 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/2) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-58edc1345bd446f75f5057805d89f14d]: [Sch. 6 para. 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/3) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-44d37145184457f59fcac7927c2d62d4]: [Sch. 6 para. 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/4) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-93a2a8140df8ef2a24de038de31ed4c4]: [Sch. 6 para. 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/5) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-0e93a921b5dd474a0f585de7720f3985]: [Sch. 6 para. 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/6) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-16f49c52b938f28c518b9d5c81a77dcc]: [Sch. 6 para. 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/7) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-40192e890ca3b230ce343e078ec3b293]: [Sch. 6 para. 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/8) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-91465b0583fe87b87b32c4e693739010]: [Sch. 6 para. 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/9) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-c8308438f47a63cf951bd998231de531]: [Sch. 6 para. 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/10) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-316b3a211f42e2e23eb6ca9e66be75e4]: [Sch. 6 para. 11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/11) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-ff3fc67bfb5cb17abccfc7baa8c773a8]: [Sch. 6 para. 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/6/paragraph/12) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-bd390fac9f7547086b12143c8f3d8e0e]: [Sch. 10 para. 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/1) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-76f7e18cb2d2800de927e13af0be689d]: [Sch. 10 para. 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/2) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-63b9d1cabf7464572a4c8a4ab6cb75c0]: [Sch. 10 para. 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/3) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9fcdb281e098a33b7ae978ffaf33896c]: [Sch. 10 para. 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/4) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-e15ad0ee5ef579a42f41113696568c9b]: [Sch. 10 para. 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/5) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9785ce1ae380ab8221a519c53b17a98f]: [Sch. 10 para. 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/6) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-aa2eddece194ee5216b0a4ac08b54bdc]: [Sch. 10 para. 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/7) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-6e1ac4fdaa6854a644790daa6117a688]: [Sch. 10 para. 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/8) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-f33cb5fc602a84ab72fc2bc7f33c1330]: [Sch. 10 para. 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/9) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-70c20a85b7ff87b6483f45b116cbc319]: [Sch. 10 para. 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/10) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-183a9e52684be92bee615cbe29f8b099]: [Sch. 10 para. 11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/10/paragraph/11) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(e)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/e) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-49fb263274090826555b3174e866397c]: [Sch. 11 para. 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/11/paragraph/1) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(f)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/f) (with [reg. 3(2)-(4)](https://www.legislation.gov.uk/uksi/2023/884/regulation/3/2), [10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-ab5eb19d23cfc947549a53ccc60e11a3]: [Sch. 11 para. 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/11/paragraph/2) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(f)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/f) (with [reg. 3(2)-(4)](https://www.legislation.gov.uk/uksi/2023/884/regulation/3/2), [10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-dc9578472d9ccaae4acde68ee96d11f9]: [Sch. 12 para. 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/1) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-222af1deffbf2a58654b2bc77f5ce46b]: [Sch. 12 para. 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/2) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-190680b533dbf1b5f16071fe2a5681f4]: [Sch. 12 para. 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/3) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-055401f0fdc4ebd1dc163c7b108caecc]: [Sch. 12 para. 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/4) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-dab5c05bba380b88a0a6a4d9a756a1f6]: [Sch. 12 para. 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/5) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-55f151b2af6da3e5e6d4c0c34bd05509]: [Sch. 12 para. 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/6) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-341b7e944a40ae5c22761dea24aa9d16]: [Sch. 12 para. 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/7) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-674c4190cd0e90cdff3ec7966b553583]: [Sch. 12 para. 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/8) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-c735ad603216c33d7e2143f64d06455b]: [Sch. 12 para. 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/9) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-9e1ea6bc5043b41925244ceb60c1cb61]: [Sch. 12 para. 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/10) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-15aaf915987a8a8c68ce7c12964296bb]: [Sch. 12 para. 11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/11) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-b3099e04befb9a8d0754b2b09279ce6d]: [Sch. 12 para. 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/12/paragraph/12) in force at 1.8.2023 in so far as not already in force by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(h)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/h) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-40112487eb20f581e77077104afaabc0]: [Sch. 13 para. 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/1) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-410a34298264e25e2cb53d8220b5fb27]: [Sch. 13 para. 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/2) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-64b27290046c16fea7ca2d283e885fbe]: [Sch. 13 para. 3](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/3) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-47cb17eb3da2b41ba9a9c14febf74afa]: [Sch. 13 para. 4](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/4) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-b980233c11eec8a0633cd4fae3f80e9a]: [Sch. 13 para. 5](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/5) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-8fe74d51ae58535b4a24c8f64cf89ea3]: [Sch. 13 para. 6](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/6) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-872ce8013b74b6ddf9a6e7e9c89254b0]: [Sch. 13 para. 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/7) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-5613f904e017786b21d7398ccc8e9784]: [Sch. 13 para. 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/8) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-450155dd4a597c3529c7486e033ee8f3]: [Sch. 13 para. 9](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/9) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-0cc1e211feb2dffc1b668636eebec31f]: [Sch. 13 para. 10](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/10) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-dfe5c0ce5324451e0dd1abdf18fe9729]: [Sch. 13 para. 11](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/11) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-83e7dbfd3e9abdcb0c34f2795befe46e]: [Sch. 13 para. 12](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/12) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-010b38170e4476690c725b7ace3ab3d2]: [Sch. 13 para. 13](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/13) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-93c153247c7afbf854b1550550d69c75]: [Sch. 13 para. 14](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/14) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-a5ab21996c99d6ec278acbbaaad57af1]: [Sch. 13 para. 15](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/15) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-8836e1f853e072549b89fa8a7d8e8858]: [Sch. 13 para. 16](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/16) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-e5ceb6b96cc7d99fb312e8803cfdb1c2]: [Sch. 13 para. 17](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/17) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-d6855c577bf43364fc6a642c972ae093]: [Sch. 13 para. 18](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/18) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-cef458ca90532452584374e76b3a28e4]: [Sch. 13 para. 19](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/19) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-01ca6660c716470ddbefd5c43f61b743]: [Sch. 13 para. 20](https://www.legislation.gov.uk/ukpga/2023/30/schedule/13/paragraph/20) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(j)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/j) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-3fa20b077bf803929b53e3fe8c92e75d]: [Sch. 9 Pt. 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/part/1) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-3cc06b45970f4c8609d33076cbfce41e]: [Sch. 9 Pt. 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/part/2) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-104c532cea9e39d5c27890fe26b97405]: [Sch. 7](https://www.legislation.gov.uk/ukpga/2023/30/schedule/7) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-77d9da6a4dac7e20b5f577c3daff9bde]: [Sch. 8](https://www.legislation.gov.uk/ukpga/2023/30/schedule/8) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^M_I_5375c81d-dbf4-46d1-a7bc-ac28a1d7b12d]: S. 107 not in force at Royal Assent, see [s. 120(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2)
[^M_I_0f2cd47b-4a4e-443e-a1b0-ed479daaf78d]: Sch. 9 Pt. 1 not in force at Royal Assent, see [s. 120(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2)
[^M_I_d18c7795-e169-4306-db81-c59caa678df9]: Sch. 9 Pt. 2 not in force at Royal Assent, see [s. 120(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2)
[^M_I_0f2cd47b-4a4e-443e-a1b0-ed479daaf78d]: Sch. 9 Pt. 1 not in force at Royal Assent, see [s. 120(2)](https://www.legislation.gov.uk/ukpga/2023/30/section/120/2)
[^key-3fa20b077bf803929b53e3fe8c92e75d]: [Sch. 9 Pt. 1](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/part/1) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
[^key-3cc06b45970f4c8609d33076cbfce41e]: [Sch. 9 Pt. 2](https://www.legislation.gov.uk/ukpga/2023/30/schedule/9/part/2) in force at 1.8.2023 by [S.I. 2023/884](https://www.legislation.gov.uk/uksi/2023/884), [reg. 2(1)(a)](https://www.legislation.gov.uk/uksi/2023/884/regulation/2/1/a) (with [reg. 10](https://www.legislation.gov.uk/uksi/2023/884/regulation/10))
2023-07-31
Finance (No. 2) Act 2023
2023-07-11
Finance (No. 2) Act 2023
original version
Text at this date