MTT62110 - Charging mechanisms: Undertaxed Profits Rule: Chargeability
Chargeable persons
The chargeable members for MTT are the same for both UTPR and the primary charging mechanism (see MTT61020). However, while top-up amounts get allocated to responsible members under the primary charging mechanism, under the UTPR the amounts get allocated to members of the group via a separate allocation mechanism.
Amount charged
Under the UTPR the amount charged to a person are the untaxed amounts allocated to a member of a multinational group for which that person is chargeable.
These are added to the total of the top-up amounts and additional top-up amounts calculated under the main MTT rules to provide a total amount of MTT that a person is chargeable to, see subsection 123(2) of Finance (No.2) Act 2023.
Investment entities
Amounts of UTPR will not be charged to investment entities. See MTT62130 for further guidance
Joint venture groups
Special rules apply to joint venture groups which affect their chargeability and how untaxed amounts are determined in relation to them. See MTT62120 for further guidance.
Election to make one member of a group liable for untaxed amounts
A group may make an election under section 229F of the Act for one member of the group within the UK to be liable for any untaxed amounts which would otherwise be allocated between qualifying members of the group located in the UK. For more information see MTT62330.