UK: Draft legislation for Finance Bill 2026-2027 includes implementation of Pillar Two side-by-side package
Also includes proposed changes to foreign branch exemption regime and proposals related to energy, real estate, and financial sectors
The government on July 13, 2026, published draft legislation for the Finance Bill 2026-2027 (along with accompanying documents, including several consultations).
The KPMG member firm in the UK prepared a July 2026 report highlighting a series of reports on the following proposals included in the draft legislation:
- Changes to foreign branch exemption regime
- Expansion of definition of exploitation rights
- UK oil and gas revenue levy (replacing energy profits levy)
- Implementation of OECD Pillar Two side-by-side package
- Consultation on capital allowances treatment of predevelopment costs for capital projects
- Consultation on land remediation relief
- Securities transfer tax (replacing stamp duty reserve tax and stamp duty on transfers of UK shares and securities)
- Taxation of crypto loans, liquidity pools, and stablecoins
- Statutory duty for taxpayers to correct known inaccuracies