UK’s Amendments to Offshore Intangible Property Tax Receive Huge Criticism

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The consultation on the UK intangible property (ORIP) legislation closed last week which was investigating draft regulations revising the UK’s Offshore Receipts in Respect of Intangible Property (ORIP) legislation as per the Income Tax (Trading and Other Income) Act 2005.

The regulations will levy 20% tax liabilities on non-UK resident firms with no UK activities, based on an unsubstantiated connection to UK sales by associated or disassociated individuals. With the draft legislation reportedly doing very little to narrow the potential scope of the regulations and leaving ‘many’ of the known clarifications unanswered.