Paragraph 1 Election for qualifying domestic top-up tax safe harbourF1

(1)

The filing member of a multinational group may make a qualifying domestic top-up tax safe harbour election for an accounting period in respect of a territory.

(2)

The effect of the election is that all of the standard members of the group located in the territory are to be treated as not having top-up amounts or additional top-up amounts for the purpose of determining the liability of any member of the group to multinational top-up tax.

(3)

An election F2is only valid for an accounting period if—

(a)

a qualifying domestic top-up tax applies in that territory for that period,

(b)

that tax is accredited for the purposes of the election (see paragraph 2), F3...

(F4ba)

the accreditation applies to the accounting period, and

(c)

none of the disqualifying conditions in paragraph 3 apply for that period.

(4)

Paragraph 2 of Schedule 15 (annual elections) applies to an election under this paragraph.

(F55)

If for an accounting period—

(a)

the application of a qualifying domestic top-up tax in relation to the members of a multinational group located in a territory depends on the making by any person of an election or claim, and

(b)

the tax does not apply in relation to those members because such an election or claim is or is not made,

sub-paragraph (3)(a) has effect in relation to the group as though the tax did not apply in the territory for the period.

Annotations

Textual amendments

F1: Sch. 16A inserted (with effect for accounting periods beginning on or after 31.12.2023 in accordance with Sch. 12 para. 1(2) of the amending Act) by Finance Act 2024 (c. 3), Sch. 12 para. 41(1)
F2: Words in Sch. 16A para. 1(3) substituted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(3)(a)(i), 72(1)(d)
F3: Word in Sch. 16A para. 1(3) omitted (in relation to accounting periods commencing on or after 31.12.2023) by virtue of Finance Act 2025 (c. 8), Sch. 4 paras. 51(3)(a)(ii), 72(1)(d)
F4: Sch. 16A para. 1(3)(ba) inserted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(3)(a)(iii), 72(1)(d)
F5: Sch. 16A para. 1(5) inserted (in relation to accounting periods beginning on or after 31.12.2025) by Finance Act 2026 (c. 11), Sch. 8 paras. 5, 53(1)