UK Backs Off Transfer Pricing Rules for Medium-Sized Companies

The UK government will drop its plan to bring medium-sized businesses under the country’s transfer pricing rules.

Small and medium-sized enterprises will remain exempt at this time to avoid imposing “additional administrative burdens” on them, according to a document released Wednesday by His Majesty’s Revenue and Customs.

The announcement comes as the tax office looks to revamp its transfer pricing regime as part of the UK’s 2025 budget. Transfer pricing refers to the way intercompany transactions are valued.

In April, HMRC proposed wide-ranging changes to the regime, including removing exemptions that medium-sized enterprises have from transfer pricing rules, to ...