The UK has reached agreement with more than 140 members of the G20-OECD inclusive framework on a package of reforms to the pillar 2 global minimum tax system.
The reforms deliver on the June 2025 G7 statement, and subsequent G20 commitments, to address how the pillar 2 system should interact with US minimum tax rules, alongside an evidence-based stocktake process to ensure that a level playing field is maintained for all inclusive framework members. Further, the reforms provide an important first step on simplification measures for UK businesses, and make wider changes to the design of the framework to support its long-term stability.
The Government welcome the certainty and stability that this agreement brings, and the protection from retaliatory measures that it provides to UK businesses. This agreement underlines the continued commitment of the UK and others to tackle aggressive tax planning by multinational enterprises and preserve the level playing field.
Measures to implement this agreement in UK law will be subject to technical consultation and then brought forward in the next Finance Bill. They will apply for accounting periods beginning on or after 1 January 2026.
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