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

Part 3 Multinational top-up tax

Chapter 4 Calculation of adjusted profits of members of a multinational group

Adjustments of underlying profits

147 Accrued pension expense

Where the underlying profits of a member of a multinational group for an accounting period reflect pension expense, the underlying profits are to be adjusted in accordance with the following steps—

• Step 1

  Determine whether income (expressed as a positive number) or expense (expressed as a negative number) has accrued to the member in respect of the pension fund in the period.

• Step 2

  Add the sum of contributions made to the pension fund by the member in the period to the result of Step 1.

• Step 3

  If the result of Step 2 is more than nil, reduce the underlying profits by that amount.

  If the result of Step 2 is less than nil, increase the underlying profits by that amount (as expressed as a positive number).