Q4 2024 | dry
5 transaction classes | 4 in range | 1 below range
Arm's-length method & ranges.
The method behind every intercompany price. Each transaction class is tested against an arm's-length interquartile range from its benchmarking set. One class is below range and needs a true-up before Q4 posts.
Classes tested
across 5 methods
In range
within IQR
Below range
Legacy distribution
Modelled uplift
m
TP-Q4-2024-13
CLASSES Method & arm's-length range
LEGACY DISTRIBUTION | CLASS 4
Tested margin vs arm's-length range
WHAT-IF
Model an adjustment
Projected tested margin
4.7%
Projected true-up on £45.0m Legacy net-sales base
+£1.3m
Outside the range, OECD 3.57/3.62 and HMRC default to the median as the adjustment point.
ENTITIES Tested-party rollup
| Entity | Group | Primary method | Tested value | Status | Q4 adj |
|---|---|---|---|---|---|
| CFCONNECT FINCO (LUX)LU-2291 | Principal | CUP royalty / TNMM | 6.5% | In range | £ 7.9m |
| ISNORTHGATE SOLUTIONS dooRS-4410 | Routine | TNMM NCPM | 7.4% | In range | £ 6.0m |
| CBConnect BidcoUK-1187 | Principal | Low value-add 5% | 5.0% | Safe harbour | £ 3.4m |
| DKNORTHGATE DOOEL (SKOPJE)MK-2201 | Routine | At cost | 0.0% | In range (at-cost policy) | £ 0.0m |
| NWNew Wave BroadbandIE-3120 | Routine | TNMM NCPM | 7.1% | In range | £ 2.0m |
| Legacy group | Distribution TNMM | 1.9% | Below range | +£1.3m indicated | view benchmarking | |||||