UK Considers Changes to Transfer Pricing Rules, Advance Pacts

The UK is considering adjusting its rules governing transfer pricing and the advance pricing agreement system.

The country’s Treasury, in its 2024 Autumn Budget announced Wednesday, said it would consult on potentially introducing a requirement for in-scope multinationals to report information on certain cross-border related party transactions to HMRC.

The government plans to open a consultation on the proposals in Spring 2025, according to the budget.

Transfer pricing refers to the way related companies value their intercompany transactions. Advance pricing agreements are binding pacts between a company and a tax authority establishing an agreed transfer pricing methodology for ...