- Britain is poised to lose approximately £600 million in tax revenue each year due to a deal granting the United States an exemption from a global minimum tax commitment.
- HMRC confirmed this anticipated reduction during scrutiny by Parliament’s Public Accounts Committee (PAC), which is examining tax payments made by major multinational firms in the UK.
- The landmark international agreement, finalised in January by nearly 150 countries, aimed to establish a 15% global minimum tax to prevent large companies from shifting profits to lower-tax jurisdictions.
- The PAC warned that HMRC must significantly improve its efforts to tackle the considerable risk of global companies diverting their profits overseas and shifting tax jurisdictions.
- Nicole Newbury, HMRC's director of large business compliance, stated that the US exemption from the Pillar 2 tax rule will reduce the UK’s expected tax income from the deal to £1.6 billion a year.
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