Paragraph 9 “Non-material member”F1

For the purposes of paragraph 8(2)(a), a member of a multinational group is a “non-material member” of the group for an accounting period if for the period in question—

(a)

the member’s assets, liabilities, income, expenses and cash flows are not included in the consolidated financial statements of the ultimate parent on a line-by-line basis,

(b)

their non-inclusion in those statements is solely on the grounds of size or materiality, and

(c)

an external auditor has agreed (without qualification) to their non-inclusion in those statements on those grounds,

or if for the period in question the member is a permanent establishment of a member that meets the conditions in paragraphs (a) to (c).

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)