INTM489115 | Unassessed Transfer Pricing Profits Conditions: Introduction to the Unassessed Transfer Pricing Profits Conditions

UTPP will apply to accounting periods beginning on or after 1 January 2026. For earlier accounting periods please use the diverted profits tax guidance at INTM489500

TIOPA10/S217A

The Unassessed Transfer Pricing Profits rules (UTPP) apply to companies within scope of the UK transfer pricing rules in the corporation tax regime. For more information see INTM410000 and BIM60525 respectively.

The UTPP Conditions

TIOPA10/S217A and TIOPA10/S217C

HMRC may only assess a company under the UTPP rules if three conditions are met:

• there are unassessed transfer pricing profits

• there is an effective tax mismatch outcome (ETMO)

• the Tax Design Condition (TDC) is met

This guidance will examine each condition in turn.

Legislative references in the guidance are to the Taxation (International and Other Provisions) Act 2010 or TIOPA10 unless stated otherwise.