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News – 10.04.24

Form PF: Are you up to speed with the latest developments?

Through this insight we will bring to your attention the main changes in a bitesize manner so that you can stay abreast of the requirements as they may apply to your firm. … Read more

Insight – 16.04.24

US and UK tax on carried interest

Learn more about the opportunities to minimise double taxation for dual US/UK taxpayers … Read more

Upcoming event – 29.04.24

Governance code updates and advice for Further Education colleges from Buzzacott and the ESFA

Join Buzzacott and the ESFA for a governance update for further education colleges … Read more

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Spring Budget 2020: Digital Services tax

From 1 April 2020, the government will introduce a 2% Digital Services Tax (DST) on the revenues of search engines, social media services and online marketplaces which derive value from UK users.

Businesses will be liable to the DST when a group’s worldwide revenues from these digital activities are more than £500 million and more than £25 million of these revenues are derived from UK users.

If a group’s revenues exceed these thresholds, revenues derived from UK users will be taxed at a rate of 2% however there is an allowance of £25 million, which means a group’s first £25 million of revenues derived from UK users will not be subject to the DST.

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Shriya Dheir

+44 (0)20 7710 3126
DheirS@buzzacott.co.uk

If caught by the new regime, the DST will be reportable and payable under the UK Corporation Tax framework.

The government still believes the most sustainable long-term solution to the tax challenges arising from digitalisation is reform of the international corporate tax rules. The DST will be dis-applied once an appropriate international solution is in place.

Read more on the Budget here.

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