Paragraph 8 Election in respect of non-material membersF1

(1)

The filing member of a multinational group may for an accounting period make an election under this paragraph in respect of one or more members of the group in a territory.

(2)

An election may be made only if for the accounting period in question—

(a)

the specified members are non-material members of the group,

(b)

the accounting conditions are met, and

(c)

any of the following is met—

(i)

the routine profits test;

(ii)

the de minimis test;

(iii)

the effective tax rate test.

(3)

Where an election is made, the total top-up amount for the accounting period for the territory is assumed to be nil for the purpose of determining the liability of any member of the group to multinational top-up tax.

(4)

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

Annotations

Textual amendments

F1: Sch. 16A Pt. 3 inserted (with effect in accordance with Sch. 8 para. 53(5)-(13) of the amending Act) by Finance Act 2026 (c. 11), Sch. 8 paras. 39, 53(5)-(13)

Notes on Schedule 16A

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)