Part 3

Multinational top-up tax
Chapter 8

Further adjustments

Additional top-up amounts on recalculations

Additional top-up amounts where recalculations required
206
1
This section applies to the standard members (“the current 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
(4)
;
ii
section 184
(2)
;
iii
section 217
(5)
;
iv
section 219(1), or
b
the current members have a special additional top-up tax amount under section 192 for the current period.
2
Where—
a
the sum of the top-up amounts that the standard members of the group in the territory in a prior period would have for that period, determined in accordance with a recalculation required under one of the sections mentioned in subsection (1)(a), is greater than the sum of the top-up amounts those members had for that prior period, or
b
this section applies as a result of subsection (1)(b) (whether or not it also applies as a result of subsection (1)(a)),
the current members collectively have an additional top-up amount (a “collective additional amount”) under this section for the current period.
3
Take the following steps to determine the collective additional amount under this section—
- Step 1Where one or more recalculations are required in accordance with any of the sections mentioned in subsection (1)(a), for each prior period carry out the recalculation or recalculations required in respect of that period to establish the top-up amounts the standard members of the group in the territory for the prior period would have had for that period (taking account of all recalculations required for that period).
- Step 2For 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 3Add together all of the results of Step 2 that are greater than nil (and if there are no such results, the result of this step is nil).
- Step 4Where the current members have a special additional top-up tax amount under section 192 for the current period, add that amount to the result of Step 3 (which may be nil).
4
Where the current members have a QDT credit for the accounting period, the collective additional amount under this section is to be reduced as follows)
5
Where—
a
the current members do not have a collective additional amount under section 203 for the current period,
b
the total top-up amount for the current period for the current members is nil, and
c
the collective additional amount under this section (before any reduction) 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 is to be reduced by the sum of those accrued amounts.
6
Where—
a
the current members do not have a collective additional amount under section 203 for the current period,
b
the total top-up amount for the current period for the current members is nil, and
c
the collective additional amount under this section (before any reduction) 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 is to be reduced to nil.
7
Where—
a
the current members have a collective additional amount under section 203 for the current period or the total top-up amount for the current period for the current members is greater than nil, and
b
the sum of the collective additional amount under this section (before any reduction), any collective additional amount under section 203 and the total top-up amount for the current period for the current members 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 is to be reduced to nil.
8
Where—
a
the current members have a collective additional amount under section 203 for the period or the total top-up amount for the current period for the current members is greater than nil, and
b
the sum of the collective additional amount under this section (before any reduction), any collective additional amount under section 203 and the total top-up amount for the current period for the current members 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 is to be reduced by the relevant amount.
9
The relevant amount is the amount given by multiplying—
a
the sum of the amounts of qualifying domestic top-up tax accrued by the current members in the current period, by
b
the amount given by dividing—
i
the collective additional amount under this section, by
ii
the sum of that collective additional amount, any collective additional amount under section 203 and the total top-up amount for the current period.
S. 206(9) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(10), 72(4)
Words in s. 206(1) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(2)(a), 72(4)
Word in s. 206(1)(b) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(2)(b), 72(4)
Words in s. 206(2)(a) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(3)(a), 72(4)
Words in s. 206(3) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(4)(a), 72(4)
Words in s. 206(3) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(4)(b), 72(4)
Word in s. 206(3) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(4)(c)(i), 72(4)
Words in s. 206(3) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(4)(c)(ii), 72(4)
Words in s. 206(4) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(5)(a), 72(4)
Words in s. 206(4) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(5)(b), 72(4)
Word in s. 206(5)(a) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(6)(a)(i), 72(4)
Word in s. 206(5)(a) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(6)(a)(ii), 72(4)
Words in s. 206(5)(b) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(6)(b), 72(4)
Words in s. 206(5)(c) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(6)(c), 72(4)
Word in s. 206(6)(a) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(7)(a)(i), 72(4)
Word in s. 206(6)(a) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(7)(a)(ii), 72(4)
Words in s. 206(6)(b) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(7)(b), 72(4)
Words in s. 206(6)(c) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(7)(c), 72(4)
Word in s. 206(7)(a) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(8)(a)(i), 72(4)
Word in s. 206(7)(a) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(8)(a)(ii), 72(4)
Words in s. 206(7)(a) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(8)(a)(iii), 72(4)
Words in s. 206(7)(b) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(8)(b)(i), 72(4)
Words in s. 206(7)(b) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(8)(b)(ii), 72(4)
Word in s. 206(8)(a) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(9)(a)(i), 72(4)
Words in s. 206(8)(a) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(9)(a)(ii), 72(4)
Words in s. 206(8)(b) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(9)(b)(i), 72(4)
Words in s. 206(8)(b) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(9)(b)(ii), 72(4)
Word in s. 206(2) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(3)(b), 72(4)
Words in s. 206(8) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 38(9)(c), 72(4)