{
  "url": "https://openlegislation.uk/finance-no-2-act-2023/section-270",
  "json_url": "https://openlegislation.uk/finance-no-2-act-2023/section-270.json",
  "legislation": "ukpga/2023/30",
  "legislation_title": "Finance (No. 2) Act 2023",
  "legislation_url": "https://openlegislation.uk/finance-no-2-act-2023",
  "path": "section/270",
  "kind": "section",
  "number": "270",
  "heading": "Amount charged",
  "text": "(A1) Where a person is chargeable to domestic top-up tax for an accounting period as, or in respect of, a qualifying entity which is a member of a group, the amount (if any) the person must pay is determined as follows—\nStep 1\nDetermine (in accordance with section 272)—\n(a)whether the entity has a top-up amount for that period, and\n(b)the extent of any such amount.\nStep 2\nIf the result of Step 1 is not expressed in sterling, convert the result of that Step to sterling.\n(1) Where a person is chargeable to domestic top-up tax for an accounting period as or in respect of a qualifying entity which is not a member of a group, the amount (if any) the person must pay is determined as follows—\nStep 1\nDetermine (in accordance with section 273) whether the entity has any top-up amounts or additional top-up amounts for that period and the extent of those amounts.\nStep 2\nDetermine the sum of those amounts.\nStep 3\nIf the result of Step 3 is not expressed in sterling, convert the result of that Step to sterling.\n(2) Generally, a qualifying entity will have a top-up amount for an accounting period if it has profits for a period and its effective tax rate (or, where it is a member of a group, that of its group) is less than 15%.\n(3) Chapter 3 of this Part makes provision, principally by applying (with modifications) provisions in Part 3, for determining—\n(a) the effective tax rate of a qualifying entity by reference—\n(i) in the case of an entity that is a member of a group, to the profits of, and the taxes payable by, members of the group that are located in the United Kingdom, or\n(ii) in the case of an entity that is not a member of a group, to its profits and to the taxes payable by that entity.\n(b) those profits,\n(c) which taxes (referred to as “covered taxes”) are to be considered in the determining effective tax rates,\n(d) top-up amounts, and\n(e) additional top-up amounts.\n(4) The exchange rate to be used for a conversion to sterling required by Step 2 in subsection (A1) or Step 3 in subsection (1) is—\n(a) the average exchange rate published by the European Central Bank for the accounting period in question;\n(b) where no such rate is published by the European Central Bank, the average exchange rate published by the Bank of England for the accounting period in question;\n(c) where no such rate is published by either the European Central Bank or the Bank of England, such rate as appears, on a just and reasonable basis, to reflect the average exchange rate for the accounting period in question.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 270(A1) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 42(2), 72(4)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 270(1) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 42(3)(a), 72(4)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 270(1) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 42(3)(b), 72(4)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "S. 270(4) 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. 35, 53(5)-(13)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2023/30/section/270",
    "retrieved_at": "2026-10-29T08:52:11.242356+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}