MTT30100 - Calculating top-up amounts: De minimis election

Under certain circumstances where a group has limited presence in a territory, the group may elect that the total top-up amount for a territory for a period to be treated as nil.

This is generally known as the de minimis election. It is set out in section 199 of Finance (No.2) Act 2023.

Conditions

A group can make a de minimis election for a period if, over the qualifying periods:

  • the average revenue of the relevant members in a territory is less than 10 million euros, and
  • the average adjusted profits of those members is less than 1 million euros.

If a qualifying period is other than 365 days, the averages of the adjusted profits and revenue are adjusted proportionally (365 divided by the number of days in the period).

Relevant members

A member is a relevant member if it is either :

  • a standard member, or
  • a minority owned member.

Average revenue

The average revenue is:

  • the aggregate revenue of the relevant members in each qualifying period,

divided by

  • the number of qualifying periods.

Average adjusted profits

The average adjusted profits is:

  • the aggregate adjusted profits of the members for each qualifying accounting period,

divided by

  • the number of qualifying periods.

Qualifying periods

Normally, there are three qualifying periods:

  • the period for which the election is made, and
  • the two prior periods.

However, one of those prior periods will not be a qualifying period if, in that period:

  • none of the members in the territory had revenue, and
  • none of the members made a loss.

This ensures that the figures for average revenue and adjusted profit are not lowered as a result of the group being entirely inactive in a territory in one of the two prior periods.

Stateless members

A member that is not located in any territory for MTT purposes is located in a nominal territory.

A de minimis election cannot be made in respect of such a nominal territory.

Making the election

A de minimis election is an annual election and is made in respect of a territory. See MTT52200 for guidance on making an election.

Amendment in Finance Act 2025

This section was amended by FA25. This guidance page reflects the current version of the legislation. Consult FA25 for legislation applicable to prior periods if the retrospection election does not apply (see MTT09490).