R (on the application of Refinitiv Ltd) v HMRC [2023] UKUT 257

Dated 20 October 2023

In Refinitiv Ltd v HMRC, the UK Upper Tribunal clarified the scope of an Advance Pricing Agreement (APA) in relation to HMRC’s authority on transfer pricing. The Tribunal ruled that the APA only applied to the periods up to 2014, without extending to subsequent years. This interpretation allowed HMRC to issue Diverted Profits Tax (DPT) notices for 2018, despite the APA’s previous terms.

The Tribunal rejected the argument that the APA’s definition of "covered transactions" should indefinitely restrict HMRC, affirming that the APA did not preclude HMRC from assessing tax using a different approach beyond its designated timeframe. 

This decision reinforces HMRC’s flexibility in handling transfer pricing for periods not explicitly covered by an APA.

A copy of the full English language judgment can be found at: https://assets.caselaw.nationalarchives.gov.uk/ukut/tcc/2023/257/ukut_tcc_2023_257.pdf