Section 267 DTT excluded entities

United Kingdom

(1)

An entity is a DTT excluded entity if—

(a)

it falls within subsection (3) of section 127 in Part 3 (excluded entities),

(b)

it is a member of a multinational group and falls within subsection (4) of that section, or

(c)

it is a member of a group that is not a multinational group, but would fall within that subsection if that group were a multinational group.

F1(1A)

A UK REIT is a DTT excluded entity (so far as would not already be the case by virtue of subsection (1)(b) or (c)).

(2)

A DTT excluded entity falling within subsection (1) F2or (3B)(b) (as well as not being a qualifying entity) is, for the purposes of the provisions of this Part other than section 266 and this section, to be treated as not being a member of any group.

(3)

A qualifying transformer vehicle that is not a member of a multinational group is also a DTT excluded entity.

F3(3ZA)

A company is a DTT excluded entity if—

(a)

it is a qualifying asset holding company for the purposes of Schedule 2 to FA 2022, and

(b)

is not a member of a multinational group.

F4(3A)

A securitisation company that is not a member of a group for the purposes of domestic top-up tax is a DTT excluded entity (and see section 267A).

F5(3B)

An investment entity is a DTT excluded entity if—

(a)

it is not a member of a group, or

(b)

it is a member of group that is comprised only of members located in the United Kingdom.

(3C)

F6Where an investment entity is a member of a group that is not comprised only of members located in the United Kingdom—

(a)

F7that entity is not to be regarded as a qualifying entity, but

(b)

top-up amounts of that entity are to be determined under sections 220 to 224 (see also section F8272(3A) which has the effect of attributing those amounts to standard members of the group that are qualifying entities and are located in the same territory as the investment entity).

(3D)

An investment entity that falls within subsection (3C) is not to be regarded as a member of any group for any purpose other than for the purposes of—

(a)

determining the top-up amounts of that entity under those sections,

(b)

applying Condition C in section 266 in relation to other members of the group (revenue threshold for group), and

(c)

subsections F9... (9), (10) and (11) of section 272 F10and the section 193A(2) contained in subsection (3A) of that section.

(4)

In this section

F11 “qualifying transformer vehicle” means—
1. (a)
  a qualifying transformer vehicle within the meaning of the Risk Transformation (Tax) Regulations 2017 (S.I. 2017/1271), or
2. (b)
  a part of a protected cell company that is a qualifying transformer vehicle within the meaning of those Regulations;
F12“securitisation company” has the meaning it has in the Taxation of Securitisation Companies Regulations 2006 (see regulation 4).

Annotations

Textual amendments

F1: S. 267(1A) 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. 34, 53(5)-(13)
F2: Words in s. 267(2) 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. 43(1)(a)
F3: S. 267(3ZA) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 44, 72(4)
F4: S. 267(3A) 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. 42(1)(a)
F5: S. 267(3B)-(3D) 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. 43(1)(b)
F6: Words in s. 267(3C) substituted (with effect in accordance with Sch. 8 para. 53(5)-(13) of the amending Act) by Finance Act 2026 (c. 11), Sch. 8 paras. 46(2)(a), 53(5)-(13)
F7: Words in s. 267(3C)(a) 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. 46(2)(b), 53(5)-(13)
F8: Word in s. 267(3C)(b) substituted (with effect in accordance with Sch. 8 para. 53(5)-(13) of the amending Act) by Finance Act 2026 (c. 11), Sch. 8 paras. 46(2)(c), 53(5)-(13)
F9: Word in s. 267(3D)(c) omitted (with effect in accordance with Sch. 8 para. 53(5)-(13) of the amending Act) by virtue of Finance Act 2026 (c. 11), Sch. 8 paras. 46(3)(a), 53(5)-(13)
F10: Words in s. 267(3D)(c) 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. 46(3)(b), 53(5)-(13)
F11: Words in s. 267(4) reordered (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. 42(1)(b)(i)
F12: Words in s. 267(4) 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. 42(1)(b)(ii)