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Pillar 2: Addition of an anti-abuse rule in the UK

14 March 2024

Proposing MP
Grantham and Bourne
Type
Written Ministerial Statement
Department
Treasury

At a Glance

Issue Summary

The statement addresses the agreement to implement Pillar 2 of the Global Anti-Base Erosion Model Rules, including new anti-abuse rules to prevent tax avoidance.

Action Requested

The government will legislate in a future Finance Bill to apply these provisions from March 14th, 2024, and will consult with stakeholders to ensure the legislation operates as intended without unintended consequences.

Key Facts

  • The agreement was made on 15 December 2023 by the UK and over 135 members of the OECD/G20 Inclusive Framework.
  • Paragraphs 74.1 to 74.31 will be inserted into the Safe Harbours and Penalty Relief OECD guidance document.
  • The government intends to apply these provisions from March 14, 2024.
Assessment & feedback
Summary accuracy