Calculation of amount of taxable diverted profits

By reference to the relevant alternative provision where actual provision condition is not met

Where actual provision condition is met

Circumstances where DPT charge arises under sections 80 or 81


Explanatory provisions

Taxable diverted profits arise to a UK or non-UK company

Estimating profits for preliminary and charging notices in section 86 cases


Actual provision condition is met

Small and medium-sized entities

Tax mismatch outcome is an excepted loan relationship outcome

Inflated expenses condition

Insufficient economic substance condition


Participation condition

Tax mismatch outcome

80% payment test


Exemptions under FA 2015, s. 107(6)