Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

diverted profits tax

Diverted profits tax was introduced from 1 April 2015. It is charged at 25% when the UK tax base is reduced, either by segregating UK and non-UK activities to avoid creating a permanent establishment, or by making payments to low tax entities, where there is a lack of economic substance.