Section 176C Value of non-marketable transferable tax credits: purchaserF1

(1)

The covered tax balance of a member of a multinational group that holds a non-marketable transferable tax credit as purchaser is to be adjusted to secure that the value the credit is reflected as follows.

(2)

On using an amount of the credit, the amount given by subsection (3) is to be reflected as a credit in the covered tax balance for the accounting period in which it is used.

(3)

That amount is the amount given by multiplying—

(a)

the amount used divided by the full value of the credit, by

(b)

the amount given by subtracting the purchase price of the credit from the full value of the credit.

(4)

On transferring the credit, the amount in subsection (5) is—

(a)

if positive, to be reflected as a credit in the covered tax balance for the accounting period in which the transfer occurred, or

(b)

if negative, to be reflected as a loss in the F2adjusted profits of the member for that period.

(5)

That amount is the amount given by subtracting—

(a)

the sum of—

(i)

the purchase price of the credit, and

(ii)

any amounts recognised F3... in the covered tax balance in accordance with subsection (2) (whether in that accounting period or a previous accounting period), from

(b)

the sum of—

(i)

the amount of the credit that has been used, and

(ii)

the consideration for the transfer.

(6)

Where the credit has not been transferred, and was not fully used, before its expiry, the amount in subsection (7) is to be reflected as a loss in the F4adjusted profits of the member for the accounting period in which the credit expired.

(7)

That amount is the amount given by subtracting—

(a)

the amount of the credit that was used, from

(b)

the sum of the purchase price of the credit and any amounts recognised in accordance with subsection (2).

Annotations

Textual amendments

F1: Ss. 176A-176C and cross-heading 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. 8(6)
F2: Word in s. 176C(4)(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. 58(a), 72(4)
F3: Word in s. 176C(5)(a)(ii) omitted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by virtue of Finance Act 2025 (c. 8), Sch. 4 paras. 58(b), 72(4)
F4: Word in s. 176C(6) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 58(c), 72(4)

Notes on Part 3

Modifications

C1: Pt. 3 modified (2.12.2025) by Finance Act 2026 (c. 11), Sch. 8 paras. 32, 53(3)