169Certain non tax resident entities to be treated as flow-through entitiesU.K.
(1)This section applies to a member of a multinational group that—
(a)is not tax resident in any territory,
(b)is not subject to covered taxes,
(c)does not have a place of business in the territory where it is created, and
(d)is not regarded as tax transparent in the territory in which it is created.
(2)A member of a multinational group to which this section applies is to be treated as being regarded as tax transparent in the territory it is created [F1in] to the extent that—
(a)it is [F2regarded as] tax transparent in the territory in which [F3holders of direct ownership interests in the member] are located, and
(b)its income, expenditure, profits and losses are not attributable to a permanent establishment.
(3)Accordingly, such a member is to be treated as a flow-through entity.
Textual Amendments
F1Word in s. 169(2) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 14(a), 72(4)
F2Words in s. 169(2)(a) inserted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 14(b)(i), 72(4)
F3Words in s. 169(2)(a) substituted (with effect in accordance with Sch. 4 para. 72(4) of the amending Act) by Finance Act 2025 (c. 8), Sch. 4 paras. 14(b)(ii), 72(4)