This episode is all about transfer pricing; what is it, why does it matter, how it is applied to businesses, where does it need to be applied and how the UK documentation regime works. It’s not something to be afraid of – it’s something to be aware of.
So what is transfer pricing? Transfer pricing is the pricing of transactions between associated enterprises. Most commonly, this is the pricing of interactions between companies within a group. From a tax authority perspective, they are looking for these interactions to be at a price that would be set between independent parties.
For more information, or any questions around transfer pricing, please get in contact with Philip Newbold, Director – Business Tax.
GET IN TOUCH:
Have any feedback? We're listening, email us at: email@example.com
View all episodes for the Talking Tax show here: https://smithandwilliamson.com/en/insights-landing/sw-the-pulse/talking-tax-podcast/
If you have a podcast query, Please contact:
Media & Advertising Assistant Manager
This episode was recorded on 04/03/2021
Smith & Williamson LLP
Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.
Smith & Williamson LLP is a member of Nexia International, a leading, global network of independent accounting and consulting firms. Please see https://nexia.com/member-firm-disclaimer/ for further details.
Smith & Williamson LLP is part of the Tilney Smith & Williamson group.
Registered in England No. OC 369631.
Tax legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice before making decisions. HMRC Tax Year 2021/22.
This S&W The Pulse podcast is of a general nature and is not a substitute for professional advice. No responsibility can be accepted for the consequences of any action taken or refrained from as a result of what is said. The views expressed are not necessarily those of the presenter or of Smith & Williamson or any of its affiliates. No reproduction of this podcast may be made in whole or in part for professional or recreational purposes. No action should be taken based on this podcast and we accept no liability if we change your views on any of the subjects mentioned.
Please remember the value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.
The Pulse from Smith & Williamson
Broadcast on Smith & Williamson at 09:00, 13th of APRIL 2021
Available online from 10:00 on the same day .
Budget 2021: Income tax
The Chancellor has followed the Conservative Party's manifesto promise not to increase the rates of income tax or national insurance contributions. Freezing the personal allowance and income tax rate bands from next year, however, will effectively increase the tax burden on many individuals over time. The pension lifetime allowance has also been frozen at its 2020/21 level.
Budget 2021: Payroll and employee incentives
The Chancellor's employment tax announcements provide continued support for COVID-related expenses and benefits for employees. The previously-announced changes to the Enterprise Management Incentive scheme and off-payroll working rules will be introduced as planned. These tax announcements come alongside an extension to the Coronavirus Job Retention Scheme.
Budget 2021: Business Taxes
The Chancellor has confirmed the Government's commitment to encouraging investment in the UK, introducing new incentives for capital expenditure and allowing accelerated relief for losses incurred by previously profitable businesses. But the Chancellor also expects businesses to pay their share of the tax burden; corporation tax rates are set to rise in the near future for bigger business.
Budget 2021: VAT and indirect taxes
The announcements on VAT and stamp duty land tax were primarily extensions to existing support measures. Hospitality and tourism businesses will continue to benefit from VAT cuts, which will continue until April 2022. The stamp duty land tax holiday for home buyers has been extended and tapered, fully returning to the standard rate in October 2021. It was also confirmed that the £85,000 VAT registration threshold will remain unchanged until 31 March 2024.
Budget 2021: The calm before the storm for individuals
Given the focus in this Budget on tackling Coronavirus by protecting jobs and focussing on economic recovery, the tax changes for individuals were largely limited to freezing specific allowances and tax bands until 2026. We know that a number of consultation papers will be published later this month, however, so it is possible there may yet be further changes to come.
Budget 2021: A Budget designed to support growth and investment for entrepreneurs
The missing headline for entrepreneurs yesterday was the silence around changes to the capital gains tax rates. The Treasury may still make changes in the future, and they will not complain in the meantime if many entrepreneurs accelerate company sales, or trigger capital gains tax liabilities in advance of possible rate changes. What we did get was a Budget which encourages investment, gives a helping hand to loss-making companies, and tasks the profitable businesses with helping fund the costs of the Covid pandemic.
Budget 2021: Capital taxes
It had been widely speculated that the 2021 Budget would bring some level of reform to the CGT regime, but capital taxes hardly featured in the Chancellor's announcements. The CGT annual exempt amount will remain at it's current level until 5 April 2026, and IHT thresholds are also frozen until this date.