Corporation and Digital Taxes Autumn Budget 2018

Corporate Tax stays at 19% but is confirmed to fall even lower over the coming years. No doubt Brexit will have an impact on this.

Digital Services Tax (DST) (April 2020)

A new 2% digital services tax to ensure that the amount of tax paid in the UK is reflective of the value they global digital companies earn in the UK from their UK users. The tax will be on:

• Income earned in UK on search engines, social media platforms and online marketplaces
• Income earned in UK linked to the participation of UK users, subject to a £25 million per annum allowance
• Global companies with income greater than £500 million per annum

It is unusual that the UK has taken the first step and 'gone it alone' without the agreement of other G6, G7 or G20 countries.  Although, with over 18 months before it commences, we assume a general consensus amongst larger GDP countries will come to the fore or maybe not?  Not so sure how Donald Trump will take this.  An attack on US owned global, digital brands? US/UK trade wars?