UK: Finance Bill draft clauses; diverted profits tax

UK: Finance Bill draft clauses; diverted profits tax

The draft clauses for next year’s Finance Bill were published today, and provide further details on the proposal to impose a new tax (at a rate of 25%) on multinational company profits that are “artificially diverted” from the UK.

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Read a December 2014 report prepared by the KPMG member firm in the UK: Diverted Profits Tax – Attempting to define the ‘elephant’ in law

Background

In the UK, the tax legislative cycle generally follows this process—the Chancellor’s Budget, the Finance Bill, the Autumn Statement, and then Finance Bill draft clauses. Although it can vary, in general, it takes about 16 months from the initial announcement (at Autumn Statement or Budget Day) through to completion of the Finance Act.

 

Read commentary about the Finance Bill draft clauses prepared by the KPMG member firm in the UK.

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