UK: Deferred corporation tax payments on cross-border transfers
The UK has changed the way corporation tax payments must be made in respect of profits or gains between UK companies and group companies located in other EU countries. The change is intended to remove uncertainty over the compatibility of UK rules for taxing transfers of assets between two group companies within the EU.
According to the measure, where the immediate payment of the tax would potentially infringe the right to freedom of establishment of any company, the UK taxpayer can now apply to pay that tax over a period of up to five years. The deferred payments are subject to interest at the same rate as late paid corporation tax.