# Finance (No. 2) Act 2023, Section 220: Top-up amount of investment entity

Extent: E+W+S+N.I.

(1) The top-up amount for an accounting period of a member of a multinational group that is an investment entity is, subject to subsection (2), determined by taking the following steps—
Step 1
Determine the adjusted profits (if any) of the entity for the period in accordance with Chapter 4. If the adjusted profits are nil or less, the top-up amount is nil. Otherwise, proceed to Step 2.
Step 2
Adjust the result of Step 1 in accordance with section 223 (to the extent applicable). If the adjusted result is nil, the top-up amount is nil. Otherwise, proceed to Step 3.
Step 3
Determine the substance-based income exclusion for the entity for the period (see section 221).
Step 4
Adjust the result of Step 3 in accordance with section 223 (to the extent applicable).
Step 5
Subtract the result of Step 4 from the result of Step 2. If the result is nil or less, the top-up amount is nil. Otherwise, proceed to Step 6.
Step 6
Determine the investment entity effective tax rate for the territory for the period (see section 222).
Step 7
Subtract the result of Step 6 from 15%. If the result is nil or less, the top-up amount is nil. Otherwise, proceed to Step 8.
Step 8
Multiply the result of Step 7 by the result of Step 5. This is the top-up amount for the entity , unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9).
Step 9
Where this Step applies, the top-up amount for the entity is the sum of—
(a)the result of Step 8, and
(b)the positive undistributed income amount for the entity for the period multiplied by 15%.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) For the purposes of applying Chapter 4 in relation to an investment entity, the references in that Chapter to “standard members” of a multinational group are instead to members of the multinational group that are investment entities.

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Source: https://www.legislation.gov.uk/ukpga/2023/30/section/220 (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2023/section-220
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.