Research and analysis

Diverted Profits Tax Yield: methodological note

This report sets out how HMRC measures the yield from the Diverted Profits Tax (DPT).

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The Diverted Profits Tax (DPT) was introduced in the UK on 1 April 2015 to address tax avoidance by Multinational Enterprises (MNEs).

The DPT has raised £31m in 2015/16 and £281m in 2016/17. The DPT is designed to encourage large businesses to change behaviours that are aimed at minimising their tax liabilities through the use of contrived arrangements.

The yield from the Diverted Profits Tax includes amounts received as a result of Diverted Profits Tax charging notices issued by HMRC, and additional amounts of Corporation Tax collected from businesses which have changed their behaviour because of the introduction of DPT.

Published 13 September 2017