Measure
The government has published a review of the UK’s Digital Services Tax (DST), a 2% tax on revenues from search engines, social media platforms, and online marketplaces derived from UK user-related activities. HM Treasury have reviewed the performance, administration and impact of the digital services tax, which raised around £800m in 2024-25. No changes have been proposed.
Businesses with annual global revenues of at least £500m and annual UK revenues in excess of £25m where those revenues arise from in-scope activities and are linked to the participation of UK users.
The government remains committed to removing the digital services tax once an appropriate global solution is in place.
In light of the intended temporary nature of the rules, the government committed to a five-year review of DST when it was introduced in April 2020. The government remains committed to repealing the tax once international agreement is reached on a multilateral solution such as that under Amount A of the OECD’s Pillar One project.