Trump Tax to Hit BP, Shell Others.

British Petroleum is expecting to be hit with a $1.5bn (£1.1bn) one-off accounting charge following new US tax reforms championed by President Donald Trump.

Though it expects the changes to be positive in the long-run, the oil giant said the cut in corporate tax from 35pc to 21pc will force it to revalue deferred tax assets and liabilities on its balance sheet and pay the hefty charge in its fourth quarter.

BP said: “The ultimate impact of the change in the US corporate income tax rate is subject to a number of complex provisions in the legislation which BP is reviewing.”

The FTSE 100 firm reported a profit after tax of $172m last year.

The news follows similar announcements by BP rival Shell which expects a $2bn-$2.5bn hit.Barclays expect £1bn charge.

Barclays also warned its Common Equity Tier 1 (CET1) measure - which was brought in to help make banks more resilient after the financial crisis - would fall by 20 basis points as a consequence of the changes.

The US Tax Cuts and Jobs Act was signed into law on December 22 despite fierce opposition by Mr Trump’s opponents and some in his own party.

 Telegraph