INTM489205 - The Unassessed Transfer Pricing Profits Process: Overview
Source: gov.uk (2025-12-04)


UTPP will apply to accounting periods beginning on or after 1 January 2026. This guidance will be updated with detailed examples by 1 January 2026. For earlier accounting periods please use the diverted profits tax guidance at INTM489500 (https://www.gov.uk/hmrc-internal-manuals/international-manual/intm489500)

Although the Unassessed Transfer Pricing Profits (UTPP) rules sit within the corporation tax framework, they are not self-assessed and are not applied by HMRC through opening an enquiry into the company’s tax return under FA98/Sch18/Para 24.

Instead, the UTTP rules are implemented through an assessment process set out at TIOPA10/Part 4A/Chapter 3. This guidance will explain that process in detail, but as a high-level summary:
- the process starts when the company submits its self-assessment, usually 12 months from the end of the accounting period it covers
- although it is not required, where UTPP is being considered it is good practice for HMRC to open an enquiry into the company tax return. This can usually be done up to 12 months after the date the self-assessment was delivered
- before a UTTP assessment can be made, HMRC must send the company a preliminary notice. This notice must be issued within 4 years of the end of the accounting period
- having been issued with a preliminary notice, the company usually has 30 days in which to make representations to HMRC
- HMRC usually has 60 days from the date on which the preliminary notice was issued to decide whether to make an assessment
- the due date of the corporation tax charge raised by the UTPP assessment is the normal due date in accordance with TMA70/S59D or regulations made under TMA70/S59E
- there is a 15-month period for amendments beginning immediately after the date on which HMRC assesses the company’s unassessed transfer pricing profits
- HMRC can review the assessment and reduce or withdraw it at any point during the period for amendments. HMRC can only increase the assessment in the first 14 months of the period for amendments
- until the last 21-days of the period for amendments, the company has an additional opportunity to amend its tax return. This is only to give the company the opportunity to partially or wholly bring its unassessed transfer pricing profits into account. Where the unassessed transfer pricing profits are included in the company tax return HMRC will amend or withdraw the assessment as necessary
- once the period for amendments has ended then provided the corporation tax charge has been paid, the company usually has 30 days beginning with the end of the period to appeal or the charge becomes final
UTPP legislation will have effect in respect of accounting periods beginning on or after 1 January 2026. DPT legislation will still have effect in respect of accounting periods beginning on or before 31 December 2025. Consequently, there is no need for apportionment rules for accounting periods which cover both 2025 and 2026.

For more information on DPT see INTM489500 (https://www.gov.uk/hmrc-internal-manuals/international-manual/intm489500).

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