BP takes $1.5bn Trump tax blow in America

Oil giant BP yesterday revealed that it will take an upfront $1.5 billion (£1.1bn) hit from president Donald Trump’s decision to slash corporate tax rates in the United States – but will benefit longer term.

BP said that although the cut from 35 per cent to 21 per cent would eventually boost its Stateside earnings it will have to revalue its deferred tax assets and liabilities.

That will result in a one-off charge which it will take in the fourth quarter results for 2017. Those Q4 numbers are expected to be released on 6 February.

BP joins other major UK companies including Shell and Barclays bank in seeing an early hit from the Trump changes, the biggest overhaul of corporate taxation in the US for three decades.

The president pledged on the campaign stump that he would slash corporation tax to push economic growth and stimulate investment. Shell has said its charge could be as high as $2.5bn.