Following the recent release of the UK Budget, the Government has published amendments to the mandatory requirement contained in the draft Finance Bill clauses of December 2015, for certain businesses in the UK to publish their tax strategy as it relates to or affects UK taxation. Alongside these amendments, HM Revenue & Customs (HMRC) has published draft guidance on the new rules. The revisions in Finance Bill 2016 have increased the scope of the legislation to now include certain permanent establishments (PEs) of overseas entities as well as companies and partnerships in the UK. The first period affected by the legislation will be the first financial year which begins after Royal Assent has been granted to Finance Bill 2016 (expected to be July 2016). The strategy must be published before the end of the financial year. After this, the strategy must be published annually and in any event no later than 15 months after the day on which the previous strategy was published unless the business falls out of the scope of the legislation.

A Tax Alert prepared by Ernst & Young UK, and attached below, provides additional details.

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