UK: New Transfer Pricing Rules - What do they mean for you?

Last Updated: 17 February 2004
Article by John Christian

The Government has announced that from 1 April 2004 transfer pricing and thin capitalisation rules will be extended to apply to transactions between two UK entities. The changes will have a significant impact on UK businesses and it remains to be seen whether the Inland Revenue will use the new legislation to raise the tax take.

Who will be affected

  • UK groups
  • UK partnerships
  • Joint venture companies

Action points

  • Consider the application of the rules on all new intra-group and joint venture arrangements
  • Reviewing existing intra-group and joint venture arrangements whether formal or informal including: