HMRC Tells Multinationals to Review Corporation Tax Deductions

The UK tax authority has asked around 200 large multinationals to review the tax treatment of management expenses that may benefit connected parties.

His Majesty’s Revenue and Customs has written letters to large businesses with overseas subsidiaries, flagging common issues with claiming corporation tax relief for management expenses, according to a Tuesday statement by the Institute of Chartered Accountants in England and Wales.

HMRC confirmed to Bloomberg Tax the letters, sent to 193 businesses since September, are part of an awareness campaign to highlight issues that “often arise in relation to expenses with a distinct benefit to a connected party”. ...