Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the OECD Pillar 2 measures on businesses.

Pillar 2 is a significant reform to international corporate tax rules that will impact large multinational enterprises headquartered around the globe.

Following the implementation of Pillar 2, the government is committed to considering opportunities for simplification or rationalisation of the UK’s rules for taxing cross-border activities.

A Tax Information and Impact note for the Multinational Top-up Tax and Domestic Minimum Tax was published in March 2023, and a Tax Information and Impact note on the Undertaxed Profits rule was published in October 2024. These notes include detail on expected business impact and can be accessed on gov.uk at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.