Finance Act 2024

Securitisation entities

42 (1) In section 267 (DTT excluded entities)—

(a) after subsection (3) insert—

“(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).”

(b) in subsection (4)—

(i) the words from ““qualifying” to the end become the first definition, and

(ii) after that definition insert—

• ““securitisation company” has the meaning it has in the Taxation of Securitisation Companies Regulations 2006 (see regulation 4).”

(2) After section 267 insert—

“267A Securitisation companies in a group treated as not consolidated

(1) Subsection (2) applies to a securitisation company that is a member of a group.

(2) The company is only to be regarded as a member of the group for the purposes of applying Condition C in section 266 in relation to other members of the group (revenue threshold for group).

(3) Otherwise, the company is to be treated as not being a member of any group for the purposes of domestic top-up tax.”

(3) After section 272 insert—

“272A Treatment of covered bond vehicles

(1) This section applies where—

(a) a covered bond vehicle that is a member of a group would, ignoring this section, have a top-up amount or an additional top-up amount for an accounting period, and

(b) at least one of the other members of the group in that period—

(i) is located in the United Kingdom, and

(ii) is not a covered bond vehicle.

(2) For domestic purposes, section 193 (calculation of top-up amounts) has effect for the purpose of determining the top-up amounts (and additional top-up amounts) of—

(a) the covered bond vehicle, and

(b) the other members of the group that are located in the United Kingdom,

as if the adjusted profits of the covered bond vehicle were nil.

(3) But subsection (4) applies if none of the members of the group that are located in the United Kingdom, and are not covered bond vehicles, have made a profit for that period (and accordingly will not, ignoring that subsection, have top-up amounts).

(4) Each of those members has a top-up amount equal to the amount given by dividing—

(a) the sum of the top-up amounts and additional top-up amounts that, ignoring subsection (2), each covered bond vehicle located in the United Kingdom would otherwise have, by

(b) the number of those members.

(5) For the purposes of this section “covered bond vehicle” has the meaning given by paragraph 53(7) of Schedule 19 to FA 2011.”