INTM489962 - Diverted Profits Tax: notification, charging and payment: amount of Diverted Profits Tax paid by a related company in a consortium case

In a consortium case, the related party may not be required to pay the full amount of DPT due and payable by the taxpayer company. The related company will be required to pay DPT in the following proportions

• Where the related company is a member of a consortium that owned the taxpayer company the proportion of unpaid DPT to include in the notice will correspond to the share which the related company has had in the consortium for the relevant period.
• Where the related company is in the same group as a company that was a member of a consortium owning the taxpayer company, the proportion of unpaid DPT to include in the notice will correspond to the share that the group companies have in the consortium.
• In a case where both situations apply, the proportion of unpaid DPT to include in the notice will be the greater of the two amounts calculated.

The member’s share in the consortium over the relevant period for which the notice applies is the lowest percentage of the following:

• the percentage of the ordinary share capital of the taxpayer company which is beneficially owned by the member;
• the percentage to which the member is beneficially entitled of any profits available for distribution to equity holders of the taxpayer company; and
• the percentage to which the member would be beneficially entitled of any assets of the taxpayer company available for distribution to its equity holders on a winding up.

If the above percentages vary over the relevant period an average is taken of the percentages over the relevant period.