Finance (No. 2) Act 2023 (c. 30)

Schedules

Schedule 16 U.K. Multinational top-up tax: transitional provision

Part 2 U.K. Transitional safe harbour

Chapter 1 U.K. Transitional safe harbour election

Simplified effective tax rate test U.K.

8 (1) The simplified effective tax rate test is met for a territory in an accounting period if the simplified effective tax rate of the standard members of the group in that territory is—

(a) in the case of an accounting period beginning before 1 January 2025, at least 15%,

(b) in the case of an accounting period beginning in 2025, at least 16%, or

(c) in the case of an accounting period beginning on or after 1 January 2026, at least 17%.

(2) The simplified effective tax rate of the standard members of a multinational group in a territory in an accounting period is the amount (expressed as a percentage) given by dividing—

(a) the aggregate qualifying income tax expense of those members for that period, by

(b) the aggregate profit (loss) before income tax of those members for that period.