Roger Godsiff – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Roger Godsiff on 2016-03-11.

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the implications for his policies on corporate taxation of the OECD’s report, Countering harmful tax practices more effectively, taking into account transparency and substance, published in September 2014.

Mr David Gauke

The OECD report published in September 2014 formed the basis of international discussions in the OECD Forum on Harmful Tax Practices, which lead to the publishing of the 2015 FHTP Report, chapter 4 of which creates a new international framework governing preferential intellectual property (“IP”) regimes, such as the UK Patent Box.

This international framework makes the lower tax rates of preferential IP regimes dependent on, and proportional to, the research and development expenditure incurred by the claimant taxpayer in developing their IP. The UK Patent Box will be amended in line with this international framework, with the new rules coming into force on 1 July 2016.

The Report also made provision for greater information exchange between tax authorities of rulings issued to individual businesses. HM Revenue and Customs is currently implementing these rules and has already begun to exchange information with other tax authorities.