International Manual

INTM489225 - The Unassessed Transfer Pricing Profits Process: Assessment

UTPP will apply to accounting periods beginning on or after 1 January 2026.  This guidance will be updated with detailed examples by 1 January 2026.  For earlier accounting periods please use the diverted profits tax guidance at INTM489500

TIOPA10/S217H

Making an assessment

Following the issue of a preliminary notice and consideration of any written representations, HMRC must decide whether to assess the company for the accounting period covered by the preliminary notice, or notify the company that no assessment will be made for that accounting period.

An assessment must be made by the designated officer within:

• the period of 60 days beginning with the day on which the preliminary notice to which it relates was issued, or if later: 
• the period of 30 days beginning with the day on which a relevant closure notice was issued under Paragraph 33 of Schedule 18 FA 1998 if that notice was given before the end of the 60-day period above, or 
• the period of 90 days beginning with the day on which the preliminary notice to which it relates was issued, if the preliminary notice sets out that the basis on which the designated officer considers there is an ETMO is because the other party is a transparent entity.

The UTPP charge will be considered payable from the relevant date for the accounting period in question. This will be in accordance with TMA70/S59D or regulations made under TMA70/S59E. For corporation tax this is usually 9 months and 1 day after the end of the accounting period, and late payment interest will run for that date. For example, if a UTPP assessment is made for the accounting period ended 31 December 2026 then the relevant date will be 1 October 2027. However, large companies are required to pay tax in quarterly instalments (for more information see CTM92505 and CTM92795.

An appeal against the UTPP assessment can only be made once the tax has been paid and the period for amendments has ended. The company can agree with HMRC to end the period for amendments early, for more information see INTM489255.

Content of the notice of assessment

The notice of the UTPP assessment should be issued shortly after making the assessment. You should include the following in the notice:

• the name of the company and the accounting period to which the notice applies 
• the amount of the charge to UTPP 
• the basis on which the officer considers that S217A applies 
• details of the provision from which the unassessed transfer pricing profits arise 
• an explanation of the basis on which the charge is calculated, including:
  • how the UTPP have been determined, and 
  • how the amount of interest in the charge has been calculated 
• The period when the company will be able to appeal a UTPP charge (with a reminder that this is subject to any agreement to end the period earlier)