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Foreign Companies: Taxation

Asked by Kirsty BlackmanScottish National PartyTreasuryTabled Answered 3 June 2026UIN 3757

The question

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of the Foreign Permanent Establishment Exemption on the economy.

Answered by Dan Tomlinson

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.

The government will undertake a technical consultation to ensure stakeholders have the opportunity to engage and to allow for further consideration of impacts.

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