UK tax leaders bracing for global minimum tax impact

A majority of UK tax leaders expect their tax planning and business operations to experience moderate to significant change once the global minimum tax is implemented, according to a EY Tax and Finance Operations Survey.

The survey found that 89 percent of UK finance leaders expect a moderate to significant impact from the tax changes.

The UK legislation for global minimum tax (or Pillar Two) was included in the recently enacted Finance (No. 2) Act 2023 and amendments have already been proposed for next year’s Finance Bill to keep the UK legislation in line with developments at an OECD level.

The reporting period for global 15 percent global minimum tax rate will come into effect in the UK from December 31, 2023.

The survey revealed that only 42 percent of UK tax leaders have completed a Pillar Two impact assessment. However, UK finance leaders are more prepared than global counterparts, with just 30 percent of finance leaders worldwide, and 33 percent across Europe, saying that their organization has completed a Pillar Two impact assessment.