MTT10110 - Scope: Definitions: Definitions of 'multinational group' and 'ultimate parent'
The definitions of multinational group and ultimate parent are set out in section 126 of Finance (No.2) Act 2023.
Multinational group
A consolidated group is a multinational group if it includes at least one member not located in the same territory as the others.
Consolidated group
A consolidated group consists of its members, which are:
- the ultimate parent,
- the entities whose assets, liabilities, income, expenses and cash flows are included in the consolidated financial statements of the ultimate parent, and
- entities that have not been included in the consolidated financial statements due to size, materiality or because the entity is held for sale.
Where the group is qualifying (see MTT11000+), all of these entities will be in scope of MTT, except for those that are excluded entities (see MTT10210).
Ultimate parent
An ultimate parent is an entity:
- in which no other entity has a controlling interest (see MTT17030), and
- which has a controlling interest in one or more other entities.
Stateless members
A stateless member, which is a member that is not located in any territory, is treated as being located in a nominal territory containing only that member.
A group that consisted solely of a number of entities located in a single territory and one stateless member would therefore be a multinational group.