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UK to bring forward reforms on oil and gas profits channelled through foreign branches - Finance news and analysis from Global Banking & Finance Review
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UK to bring forward reforms on oil and gas profits channelled through foreign branches

Published by Global Banking & Finance Review

Posted on May 21, 2026

1 min read

· Last updated: May 21, 2026

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Finance Banking Markets oil and gas Taxation

UK Accelerates Tax Reforms on Oil & Gas Profits Through Foreign Branches

Government Announces Acceleration of Taxation Changes

Finance Minister Rachel Reeves Outlines New Measures

LONDON, May 21 (Reuters) - British finance minister Rachel Reeves said on Thursday the government would accelerate planned changes to the taxation of oil and gas company profits channelled through foreign branches, reforms expected to raise hundreds of millions of pounds per year.

Current Tax Practices of Oil and Gas Groups

"Currently, some oil and gas groups that operate overseas through foreign branches have structured their tax affairs in a way which ensures they pay little or no corporation tax on their UK energy trading profits," Reeves told parliament.

Government Response and Next Steps

"Today we're putting an end to that practice," she said.

Reporting Credits

(Reporting by Muvija M, writing by Sam Tabahriti, editing by William James)

Key Takeaways

  • Reforms target profits channelled through foreign branches, ending tax avoidance of UK energy trading profits.
  • The accelerated changes are projected to generate “hundreds of millions of pounds” in additional revenue each year.
  • The move complements broader energy fiscal reforms under Chancellor Rachel Reeves’s agenda to clamp down on offshore tax structuring.

Frequently Asked Questions

What tax reforms is the UK planning for oil and gas companies?
The UK is accelerating changes to tax profits oil and gas companies channel through foreign branches.
How will the reforms affect oil and gas company profits?
Reforms will end tax structures that allow oil and gas firms to pay little or no UK corporation tax on energy trading profits.
Who announced the upcoming changes to oil and gas taxation?
British finance minister Rachel Reeves announced the accelerated tax reforms in parliament.
What financial impact are the reforms expected to have?
The changes are expected to raise hundreds of millions of pounds per year for the UK treasury.
Why is the UK government making these changes now?
The reforms aim to prevent tax avoidance by companies routing profits overseas, ensuring fair taxation.

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