UK to close tax loophole, targeting oil and gas firms' profits
Rachel Reeves said the change will raise hundreds of millions of pounds a year and stop oil firms from cutting tax on UK energy trading profits.
- On Thursday, Finance Minister Rachel Reeves told Parliament the government will end a tax loophole allowing oil firms to use foreign branch losses to offset taxable British profits, stating, "Today we're putting an end to that practice."
- Reeves said some oil and gas groups structured their affairs to pay "little or no corporation tax" on British energy trading income, as soaring fuel costs from the Iran war and Strait of Hormuz disruptions drove massive profits.
- Britain already imposes a 78% headline tax rate on upstream oil and gas profits, and the Government expects the new measure to raise hundreds of millions of pounds annually for consumer initiatives including food tariff reductions.
- Campaigners at Greenpeace welcomed the move to prioritize "cash-strapped households over polluting profiteers," while Offshore Energies UK , the UK's leading energy body, said it is "reviewing what's been proposed."
- Just last week, Britain moved to permanently ban new North Sea oil and gas exploration licenses, signaling that London's broader transition agenda continues despite tensions between climate policy and current energy market realities.
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UK Adds New Tax Pressure as Energy Security Concerns Grow
Britain is tightening another screw on its oil and gas sector, this time by closing a tax structure that officials say allowed multinational energy firms to sharply reduce taxes on profits generated from UK operations. Finance Minister Rachel Reeves said Thursday the government will end a practice allowing losses from foreign branches to offset taxable UK profits, a move she said was being used by some oil and gas companies to pay "little or no …
perspectivemedia.com
Belfast TelegraphReeves targets oil and gas profits with plans to close tax loophole
The Chancellor hopes reforms to taxation of overseas activities will bring in ‘hundreds of millions of pounds’. Campaigners have cheered the Chancellor’s move to take aim at oil and gas profits with plans to close a tax loophole on overseas activities and raise hundreds of millions of pounds. In a speech outlining cost-of-living support measures for households and businesses, Rachel Reeves said she would stop firms – including oil and gas giants…
UK to close tax loophole, targeting oil and gas firms' profits
British finance minister Rachel Reeves said on Thursday she would stop multinationals, including oil and gas firms, from reducing their tax liability by using corporate structures that involve foreign branches.
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