Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed reforms to the taxation of foreign branch profits on (a) tax revenues, (b) investment, (c) employment and (d) business activity in the UK oil and gas sector; how many companies are expected to be affected; and if she will publish the analysis commissioned to support her Department's estimate of the potential impact of the those reforms on revenue.

These reforms will ensure that profit attributable to UK activities is effectively taxed in the UK.

They are expected to raise hundreds of millions of pounds per year - helping to fund a package of economic support for households and businesses – while at the same time maintaining a highly competitive UK tax regime for UK companies operating overseas. This change will not impact the tax treatment of extractive activity in the UK Continental Shelf.

The government will undertake a technical consultation shortly, with draft legislation due to be published in the summer, ahead of final legislation in Finance Bill 2026-27.

A full Tax Information and Impact Note will be published at Budget 2026; along with a full policy costing as part of the fiscal and economic forecast undertaken by The Office for Budget Responsibility.

A policy paper published on 21 May 2026 sets out further detail on this reform.