Section 256 Qualifying domestic top-up tax

United Kingdom

(1)

For the purposes of this Part a tax is a “qualifying domestic top-up tax” if it is—

(a)

domestic top-up tax (see Part 4), or

(b)

specified in F1, or in accordance with, regulations made by the Treasury.

F2(1A)

Regulations may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty’s Revenue and Customs in accordance with the regulations.

(2)

A tax may only be specified in regulations F3, or a notice, if the F4appropriate authority considers that it is equivalent in substance to domestic top-up tax (see Part 4).

F5(2A)

The “appropriate authority” means—

(a)

in relation to the specification of a tax in regulations, the Treasury, or

(b)

in relation to the specification of a tax made by notice, the Commissioners for His Majesty’s Revenue and Customs.

(3)

A tax may be considered equivalent to domestic top-up tax despite being not being calculated in accordance with the financial accounting standard used in the consolidated financial statements of the ultimate parent if calculated in accordance with an authorised accounting standard that is either—

(a)

an acceptable accounting standard, or

(b)

another financial accounting standard that is adjusted to prevent material competitive distortions.

(4)

Regulations under this section may provide F6for the specification of a tax F7... to have effect from a time before F8the tax was specified (but may not provide F9for the specification of a tax to cease to have effect in relation to accounting periods commencing before the regulations are made).

F10(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: Words in s. 256(1)(b) substituted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(2)(a), 72(1)(d)
F2: S. 256(1A) inserted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(2)(b), 72(1)(d)
F3: Words in s. 256(2) inserted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(2)(c)(i), 72(1)(d)
F4: Words in s. 256(2) substituted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(2)(c)(ii), 72(1)(d)
F5: S. 256(2A) inserted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(2)(d), 72(1)(d)
F6: Word in s. 256(4) substituted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(2)(e)(i), 72(1)(d)
F7: Word in s. 256(4) 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(2)(e)(ii), 72(1)(d)
F8: Words in s. 256(4) substituted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(2)(e)(iii), 72(1)(d)
F9: Words in s. 256(4) substituted (in relation to accounting periods commencing on or after 31.12.2023) by Finance Act 2025 (c. 8), Sch. 4 paras. 51(2)(e)(iv), 72(1)(d)
F10: S. 256(5) omitted (in relation to accounting periods beginning on or after 31.12.2025) by virtue of Finance Act 2026 (c. 11), Sch. 8 paras. 29, 53(1)

Notes on Part 3

Modifications

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