Multinational Top-up Tax and Domestic Top-up Tax

MTT65020 - Charging mechanisms: Domestic Top-up Tax charge: Chargeable persons

Chargeability is different for Domestic Top-up Tax (DTT) compared to MTT because the concept of responsible members does not exist for DTT. All qualifying entities that are a body corporate or a partnership will be chargeable persons for DTT.

In some cases, a person other than a qualifying entity may be chargeable. These are explained below.

A group may elect to make one member liable for amounts charged. See MTT65040.

This is set out in section 269 of Finance (No.2) Act 2023.

See MTT10020 for guidance on the meaning of ‘qualifying entity’.

Qualifying entity is neither a body corporate nor a partnership

If a qualifying entity is neither a body corporate nor a partnership, another person may be chargeable in respect of it.

Another person will be chargeable if the qualifying entity’s profits would be the profits of that person for the purposes of Income Tax or Corporation Tax. This will be the case if:

• the qualifying entity has profits chargeable to Income Tax or Corporation Tax, and
• the person is resident in the UK for the purpose of that tax.

Where more than one person is chargeable in respect of the same qualifying entity, these persons are jointly and severally liable.

Group payment notice

If a chargeable person fails to pay their DTT liability, HMRC may issue a notice to another member of the group to make it liable for the amount. See MTT54200+ for more information on group payment notices.