The Taxation of Foreign Profits in the UK A New Dawn
By Arun Birla and John Ross-Munro
The 2008 UK Pre-Budget Report announced a package of reforms to the taxation of foreign profits. The express objective of the reforms is to support and enhance the UK's competitive position and the proposals represent an important and fundamental change to the way the UK taxes foreign profits. Draft legislation (together with detailed notes and guidance) dealing with these reforms was published last week. This alert discusses some of the key aspects of the draft legislation. Whether the final provisions actually meet their stated objective remains to be seen.