Amidst bumper profits from the 2026 oil price shock, the £1.5bn tax bill of one of the world’s biggest oil traders remains unsettled after 15 years. Why? TaxWatch looks inside what is probably the UK’s largest diverted profits tax dispute. This report shows how successive UK governments have changed law and treaties to enable multinational corporates to settle alleged tax avoidance assessments via a system of closed-door private negotiation and secret private arbitration.
The fourth of TaxWatch’s annual data deep-dives into the administration of the UK tax system, covering the 2024-25 tax year. Using published data and extensive figures obtained via Freedom of Information, we look at how HMRC’s progress in the last year compares with past performance; whether the deployment of its staff and resources matches the measured challenges of the tax system; and taxpayers’ experiences of tax administration.
Governments refuse to release estimates of the revenue foregone from the G7’s 2025 deal to exempt US-headed corporate groups from international minimum taxes. Using OECD and US government data, TaxWatch has produced a ball-park policy costing to fill the gap and inform debate.
HMRC says that over 1600 companies benefit from the Patent Box, a tax relief intended to stimulate innovation and high-value jobs across the UK economy. But previously unpublished figures show that over half of this £2bn annual tax incentive goes to just ten companies, and over a quarter to one profitable multinational, which has nonetheless cut UK jobs and manufacturing.
Key claims about the UK’s Digital Service Tax made by the US Government and the US tech industry are incorrect.
The UK tax advice market operates with minimal regulation, creating significant risks for both taxpayers and HMRC. Anyone can establish themselves as a tax adviser regardless of qualifications or competence. This report reviews problems created by the industry’s lack of regulation, examines regulatory practices in other countries, and recommends an independent regulatory body for the UK tax advisory industry.
The 2024 edition of TaxWatch’s annual report on the UK Government’s administration and enforcement of the tax system.
TaxWatch’s latest annual report on the UK Government’s administration and enforcement of the tax system.