INTM489335 - The Unassessed Transfer Pricing Profits Practical Guidance: Initial Information Request

UTPP will apply to accounting periods beginning on or after 1 January 2026.  This guidance will be updated with detailed examples by 1 January 2026.  For earlier accounting periods please use the diverted profits tax guidance at INTM489500

Below is an example of the sorts of information HMRC may ask for as part of an information and document request in the context of considering a case considered high risk for UTPP:

  • copies of transfer pricing documentation, intercompany agreements, etc.
  • identification of all legal entities that contribute to generating operating profit from sales to which UK staff contribute (for example sales and marketing) and quantification of the operating profit recorded for each entity for a specified accounting period(s) as well as other factual details of the entities including:
    1. how they are treated for tax purposes in their respective jurisdictions, and
    2. the number of employees for each entity.
  • the transfer pricing policy adopted for each entity.
  • further information for more senior staff working in the UK and relevant foreign entities that earn a basic salary of greater than a specified threshold amount including:
    1. job title,
    2. role performed (cross referenced to intercompany transactions they contribute to where relevant),
    3. reporting lines (who the individual reports to and their location as a minimum),
    4. basic salary, and
    5. economic value of bonuses, any type of share-based reward and details of how staff are incentivised
  • copies of job adverts and job descriptions for any jobs advertised by the UK company(ies) for a specified accounting period(s).
  • in order to appreciate the scale of business for different sales channels we may ask for revenue details, for example the top 10 UK customers of the group, etc.
  • product lifecycle journeys which facilitate a detailed understanding of the involvement of all entities involved in relevant products from ‘cradle to grave’. This may include areas such as:
    1. research and development, 
    2. key milestones, 
    3. manufacture/distribution, 
    4. marketing and commercialisation, 
    5. regulatory requirements, 
    6. sales process including pricing models, and
    7. governance roles and processes including Boards, committees and panels together with those individuals that are members.
  • details of the group’s strategy for intellectual property/other intangibles, including arrangements in place between two foreign group entities which affect how the group’s commercial activity is carried on in the UK (for example a royalty agreement between a group IP holder and a foreign EMEA sales hub entity which books sales to UK customers).
  • details of any internal governance documents outlining the negotiation and sales contract approval process.

Further details concerning business records and information can be found at Annex A —examples of helpful supporting records and information.

The information and document request should be tailored to the specifics of the company concerned and the sector it operates in. In some cases the relevant value chain will relate to a particular line of business. In other cases there may be more than one such value chain presenting risks of unassessed transfer pricing profits.

The PDCF guidance provides details of information HMRC requires to be included in disclosure reports submitted through this facility. We expect to gather similar information as that required in such disclosure reports during the course of HMRC investigations concerning unassessed transfer pricing profits.