Diverted profits tax rate:
|From 1 April 2015||25%|
Diverted profits tax applies to large multinationals who enter into contrived arrangements to create ‘diverted profits' to avoid a UK taxable presence on their business activities. Further, the tax also applies where companies use transactions or entities lacking economic substance to create a UK tax advantage. This applies to those companies who have UK customers in excess of £10million but no UK taxable presence.