(1)This section applies to the standard members of a multinational group in an accounting period (“the current period”) in a territory where—
(a)a recalculation is required in the current period in relation to one or more previous accounting periods (each a “prior period”) as a result of any of the following sections—
(i)section 163(4);
(ii)section 184(2);
(iii)section 217(5);
(iv)section 219(1), or
(b)the members have a special additional top-up tax amount under section 192 for the current period.
(2)Where—
(a)the sum of the top-up amounts that those members would have for a prior period, determined in accordance with a recalculation required under one of the sections mentioned in subsection (1)(a), is greater than the sum of the top-up amounts those members had for that prior period, or
(b)this section applies as a result of subsection (1)(b) (whether or not it also applies as a result of subsection (1)(a)),
the members collectively have an additional top-up amount (a “collective additional amount”) under this section for the current period.
(3)Take the following steps to determine the collective additional amount under this section—
Step 1
Where one or more recalculations are required in accordance with any of the sections mentioned in subsection (1)(a), for each prior period carry out the recalculation or recalculations required in respect of that period to establish the top-up amounts those members would have had for the prior period (taking account of all recalculations required for that period).
Step 2
For each prior period, subtract the sum of the top-up amounts those members had for that prior period from the sum of top-up amounts that those members would have for that period.
Step 3
Add together all of the results of Step 2 that are greater than nil.
Step 4
Where the members have a special additional top-up tax amount under section 192 for the current period, add that amount to the result of Step 2 (which may be nil).
(4)Where those members have a QDT credit for the accounting period, the collective additional amount under this section is to be reduced in accordance with subsections (5) to (8).
(5)Where—
(a)the standard members do not have a collective additional amount under section 203 for the period,
(b)the total top-up amount for the current period for the members for the members’ territory is nil, and
(c)the collective additional amount under this section (before reduction by relevant QDT credit) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under this section is to be reduced by the sum of those accrued amounts.
(6)Where—
(a)the standard members do not have a collective additional amount under section 203 for the period,
(b)the total top-up amount for the current period for the standard members in the territory is nil, and
(c)the collective additional amount under this section (before reduction by relevant QDT credit) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under this section is to be reduced to nil.
(7)Where—
(a)the standard members have a collective additional amount under section 203 for the period or the total top-up amount for the current period for members for the members’ territory is greater than nil, and
(b)the sum of the collective additional amount under this section (before reduction by relevant QDT credit), any collective additional amount under section 203 and the total top-up amount for the current period for the members for the member’s territory is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under this section is to be reduced to nil.
(8)Where—
(a)the standard members have a collective additional amount under section 203 for the period or the total top-up amount for the current period for members for the members’ territory is greater than nil, and
(b)the sum of the collective additional amount under this section (before reduction by relevant QDT credit), any collective additional amount under section 203 and the total top-up amount for the current period for the members for the member’s territory is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under this section is to be reduced by the amount given by multiplying the sum of those amounts of qualifying domestic top-up tax by the amount given by dividing the collective additional amount under this section by the sum of that collective additional amount, any collective additional amount under section 203 and the total-up up amount for the current period.
(1)Where the standard members of a multinational group in a territory have a collective additional amount under section 206 for an accounting period (“the current period”), that amount is to be allocated to those members as follows—
Step 1
Determine the sum of the top-up amounts that those members would have (in prior accounting periods) in accordance with the recalculation, or recalculations, that relate to that collective additional amount.
Step 2
Determine the sum of the top-up amounts that each of those members would have in accordance with the recalculation, or recalculations, that relate to the collective additional amount.
Step 3
For each member where the result of Step 2 is greater than nil, divide that result by the result of step 1.
Step 4
Each such member has an additional top-up amount under this section equal to the amount given by multiplying the collective additional amount by the result of Step 3 for that member.
(2)Chapter 7 (allocation of top-up amounts to responsible members)—
(a)applies to an additional top-up amount allocated to a member of a multinational group under this section as it applies to a top-up amount of that member, and
(b)if the result of Step 2 in section 132(1) in relation to the standard members of the group for the current period is nil or less (those members between them have made a loss), has effect as if the adjusted profits of that member were the amount given by dividing the additional top-up amount by 15%.