Budget 2015 analysis: direct profits tax, IHT, pensions, aggresssive tax promoters

With a Budget light on concrete measures, the Chancellor finalised the direct profits tax, aka Google tax, announced a serious clampdown on aggressive tax scheme promoters and a review of the use of deeds of variation to avoid IHT, while there were some new business reliefs for the hard-pressed oil and gas sectors, R&D tax credits and tax reporting extension for farmers

Google tax to bring in £1.3bn as direct profits tax rushed through

The ‘Google’ tax, formally referred to as the Diverted Profits Tax (DPT) has kicked in, as of 1 April 2015, following initial announcement in the Autumn Statement 2014.

DPT is expected to yield £1.3bn by 2019/20, with the new rules, confirmed at Budget 2015, aimed at multinationals that artificially shift profits offshore.

The legislation includes a revision to narrow the number of companies who will need to provide information to HMRC.

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Google tax to bring in £1.3bn as direct profits tax rushed through

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