MTT21000 - Calculating the effective tax rate: Adjusted profits: Contents

The adjusted profits of a member are the underlying profits after certain adjustments have been made.

See MTT21010 for guidance on determining the underlying profits.

See MTT21100 for guidance on adjustments that must be made to those underlying profits.

This is set out in Section 133 of Finance (No.2) Act 2023.

  1. MTT21010
    The underlying profits
  2. MTT21020
    Wholly domestic groups - Alternative basis for determining underlying profits
  3. MTT21100
    Adjustment of underlying profits
  4. MTT21110
    Tax expense
  5. MTT21120
    Intra-group transactions
  6. MTT21125
    Intra-group transactions – Permanent differences arising from transfer pricing adjustments
  7. MTT21130
    Relevant share acquisition adjustments
  8. MTT21140
    Excluded dividends
  9. MTT21150
    Excluded equity gain or loss
  10. MTT21160
    Revaluation method gain or loss
  11. MTT21170
    Asymmetric foreign currency gain or loss
  12. MTT21180
    Illegal payments
  13. MTT21190
    Fines and penalties
  14. MTT21200
    Prior period errors
  15. MTT21210
    Changes in accounting principles
  16. MTT21220
    Pension fund expense
  17. MTT21230
    Transactions requiring arm's length treatment
  18. MTT21240
    Intra-group financing arrangements
  19. MTT21250
    Election to use realisation principle
  20. MTT21260
    Stock-based compensation election
  21. MTT21270
    Election to spread certain capital gains over five years
  22. MTT21280
    Currency hedging election
  23. MTT21290
    Election where assets and liabilities adjusted to fair value for tax purposes
  24. MTT21300
    Qualifying tier one capital
  25. MTT21400
    Tax credits - Overview
  26. MTT21410
    Qualifying refundable tax credits
  27. MTT21420
    Marketable transferable tax credits
  28. MTT21430
    Marketable transferable tax credits – Adjustments required
  29. MTT21440
    Non-marketable transferable tax credits