Part 4Domestic top-up tax
Chapter 2Charge to domestic top-up tax
270Amount charged
1
Where a person is chargeable to domestic top-up tax for an accounting period as a qualifying entity or in respect of a qualifying entity, the amount (if any) the person must pay is determined as follows—
Step 1
Determine whether the entity has any top-up amounts or additional top-up amounts for that period and the extent of those amounts.
Step 2
Determine the sum of those amounts.
Step 3
If the result of Step 3 is not expressed in sterling, convert the result of that Step to sterling.
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%.
3
Chapter 3 of this Part makes provision, principally by applying (with modifications) provisions in Part 3, for determining—
a
the effective tax rate of a qualifying entity by reference—
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
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.
b
those profits,
c
which taxes (referred to as “covered taxes”) are to be considered in the determining effective tax rates,
d
top-up amounts, and
e
additional top-up amounts.