HM Treasury consulted on the implementation of Pillar Two earlier this year to which Chartered Accountants Ireland responded. The Financial Secretary to the Treasury recently issued a letter to the consultation respondents, including this Institute, which provides an interim update on the implementation of this legislation in the UK and confirms a delay to the implementation of this legislation to 2024.
The letter confirms that, having listened to concerns on timing of implementation, the UK Pillar 2 legislation will first apply to accounting periods beginning on or after 31 December 2023. This will give businesses an appropriate lead-in time before implementation and allow the policy to benefit from progress on the international process. A full consultation response and further update will be provided later in the summer, possibly on legislation day next week.