UK: Diverted profits tax, final legislation next week

UK: Diverted profits tax, final legislation next week

Some changes to the new diverted profits tax draft legislation were outlined in the Budget, delivered on 18 March 2015. The Budget clarified that the effective date for the diverted profits tax will be 1 April 2015. The final version of the legislation will be published on Tuesday 24 March, as the Finance Bill.

Related content

The Budget took place on Wednesday 18 March 2015, and the Finance Bill will be published Tuesday, 24 March. With Parliament scheduled to be dissolved on 30 March, the Finance Bill will have less than a week to become law.

Read a March 2015 report prepared by the KPMG member firm in the UK that discusses items expected to be included in the Finance Bill:

  • The diverted profits tax (effective from 1 April 2015)—a new tax, separate from corporation tax, payable at a rate of 25%, and aimed at multinationals entering into contrived arrangements to divert profits from the UK
  • Changes to capital gains tax for non-residents (effective from April 2015)—extending capital gains tax to disposals of residential property by non-residents
  • Anti-avoidance measures
  • Changes to the loan relationship rules

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.