Transfer Pricing

New Challenge

TRANSFER PRICING HAS for some years been the preserve of larger multinational enterprises (MNEs). In fact for these groups it has been one of the most important and challenging international tax issues around. This has changed. From this year transfer pricing will potentially affect just about every UK group of companies. This article is intended to provide an introduction to transfer pricing in the UK. It is an issue that will now affect many companies and their advisers for the first time.

What is transfer pricing?

Transfer prices are the prices that group companies use when they transact with each other. They include the pricing of goods and services but financial transactions and those to do with intellectual property are also in point. For many years Revenue authorities around the world have realised that the internal pricing used...