The U.K. government presented its 2015 budget on March 18, 2015.
The U.K. government presented its 2015 budget on March 18, 2015. Only a few major tax measures were announced in the budget, including the government's previously proposed "diverted profits tax". This tax targets non-resident entities with substantial U.K. activities that deliberately avoid establishing a U.K. taxable presence.
The new 25% diverted profits tax is separate from corporation tax and is aimed at multinationals entering into "contrived arrangements" to divert profits from the U.K. This tax will affect non-U.K. resident groups that make sales of more than Â£10 million to U.K. customers and companies that achieve an effective tax rate benefit through payments to group companies. The budget confirms that this "BEPS-friendly" tax will take effect on April 1, 2015.
Highlights of other anti-avoidance and tax-raising measures in the 2015 U.K. budget are as follows. The budget:
A Finance Bill to enact the budget measures will be published on March 24. However, due to an election coming up on May 7, the U.K. Parliament is scheduled to be dissolved on March 30. As such, the Finance Bill will have less than a week to be passed into law.
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Information is current to March 24, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
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