UK Moves Ahead on Final Part of Global Minimum Tax Deal

The UK sent legislation to parliament addressing the final part of the global minimum tax deal, known as the undertaxed profits rule, the Treasury said Wednesday.

The rule would apply additional tax on a subsidiary of a multinational that has profits taxed at a rate below 15% in another jurisdiction, in line with the OECD-led global tax reform deal. The Treasury confirmed its plans in the 2024 Autumn Budget.

The adoption of the rule will bring in £85 million ($110 million) in 2024-25 and around £445-£550 million pounds per financial year from 2025-26 to 2029-30, the Treasury said.