The White House is drawing up plans that could double the tax rate on the American arms of UK companies, in a move that experts fear could have an even greater impact than the tariffs on British goods unveiled last week. The Trump administration is planning to invoke a 91-year-old rule that gives the president the authority to raise taxes on foreign companies if their home nation imposes levies that are deemed to unfairly target US businesses. Section 891 of the Internal Revenue Code, which gives the president this power, has never been used. On the first day of his second term, Trump ordered his staff to investigate which countries imposed “discriminatory” taxes on US firms. The work was completed last week and senior accountants

Source: The Times April 06, 2025 11:12 UTC