The International Controlled Transactions Schedule (ICTS) is a reality
The UK government has confirmed the introduction of the International Controlled Transactions Schedule (ICTS).
Key Updates:
– Effective Date: Accounting periods beginning on or after 1 January 2027.
– Requirement: Standardized disclosure of cross-border related-party transactions, significantly increasing the information companies must disclose, to feed directly into HMRC’s risk-profiling systems.
– Thresholds: Yet to be finalized. If the original proposal of a GBP 1m+ related party transactions threshold is implemented, it will bring many groups into scope.
– Next Steps: Further consultation on draft legislation, including details on filing format and methods, is expected in Spring 2026.
Sources:
– GOV.UK: Transfer pricing: international controlled transactions schedule (https://www.gov.uk/government/publications/transfer-pricing-international-controlled-transactions-schedule)
– GOV.UK: Transfer pricing scope and documentation — Summary of responses (https://www.gov.uk/government/consultations/transfer-pricing-scope-and-documentation/outcome/transfer-pricing-scope-and-documentation-summary-of-responses)
Reach out to paul.valdivieso@basefirma.com with any questions