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Further information — next steps, further questions, feedback, legislation and guidance

Published 10 September 2024

Next steps 

What to do if you have made an error 

Due to a greater awareness of common risks in transfer pricing approaches, businesses may identify areas where they need to adjust their filed return to correctly reflect the transfer pricing rules. 

We encourage businesses to correct errors in their transfer pricing position after reading these guidelines. Doing so manages exposure to adjustment and potential penalties under enquiry. 

Where you discover an error in the calculation of tax arising from the application of the arm’s length principle, you must: 

• check if the tax paid in earlier years is also likely to have been incorrect
• recalculate the liability for the year or years in question 

Notwithstanding any impact on the ‘go-forward’ self-assessment, the process for bringing your tax affairs up to date depends on whether the affected returns are within the timeframe for amendment: 

• where you are within time to make an amendment — amend the return to reflect the increased profits or reduced losses resulting from applying the arm’s length principle to the relevant provisions for that period — where you have a Customer Compliance Manager, inform them of the changes 
• where you are not within the timeframe to make an amendment — you can email us at [email protected] — we will guide you through the voluntary disclosure process. Include the GfC reference number GFC7 in the subject field. Where you have a Customer Compliance Manager, copy them into the email 

Further questions 

If you have feedback or questions about these guidelines you can email us at [email protected].

Include the GfC reference number GFC7 in the subject field. If you have a Customer Compliance Manager, copy them into the email. 

Sending information by email carries certain risks. HMRC will assume that by sending information by email you understand and accept these risks.

HMRC cannot give advance clearance on transfer pricing, outside of Advance Pricing Agreements. While we can clarify the meaning of these guidelines, or their relevance to your business, we cannot give forward assurance of the correct transfer pricing position, except through an Advance Pricing Agreement. 

Give feedback on these guidelines

We’ve created a survey to help measure your experience of this Guidelines for Compliance product.

We’ll use the feedback from this survey to:

• measure customers’ experience of using these guidelines
• understand where we need to make improvements to these guidelines
• improve future Guidelines for Compliance products

You can only use this survey to give anonymous feedback about these guidelines. Do not provide any personal data that might identify you, your clients, or any specific case or enquiry with HMRC. The survey is not a route to contact HMRC for specific enquires. The replies will not be seen by anyone responsible for dealing with your tax affairs. 

This survey has been created in accordance with the HMRC Privacy Notice.

Complete the survey to provide feedback on these guidelines.

Legislation and guidance 

The main legislation relating to transfer pricing for accounting periods ending on or after 1 January 2023 (and income tax years 2023 to 2024 onwards) is at Part 4 Taxation (International and Other Provisions) Act 2010 (TIOPA10). Section 164 TIOPA10 provides that the legislation is to be interpreted in a manner that best ensures consistency with the guidance in the OECD’s Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022 on their website.

For previous periods, apply earlier versions of the OECD transfer pricing guidelines as appropriate. Read INTM421010 — OECD Guidelines for further details. 

The main source of guidance relating to transfer pricing is the HMRC international manual guidance INTM410000 — Transfer pricing guidance. 

HMRC has introduced a requirement for UK entities that are part of a multinational enterprise group, with consolidated group revenue of €750 million or more, to keep and preserve both master and local file.

This requirement applies: 

• for Corporation Tax purposes — to accounting periods beginning on or after 1 April 2023 
• for Income Tax purposes — from the 2024 to 2025 tax year 

Both the master and local file must be prepared in accordance with the OECD Transfer Pricing Guidelines. The specific requirements are set out in The Transfer Pricing Records Regulations 2023. Further guidance can be found in the international manual INTM450000 — Transfer pricing records.