BP has warned Trump's tax reforms will cost it $1.5bn

Emma Haslett
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Trump's tax reforms were passed just before Christmas. (Source: Getty)

Oil giant BP has warned it will take a one-off hit of $1.5bn (£1.1bn) as it grapples with Donald Trump's radical tax reforms.

The company said this morning although the tax cut will positively impact it in the long term, it will require a revaluation of its deferred tax assets and liabilities in the US, which will lead to a non-cash charge of "around" $1.5bn in the fourth quarter.

However, it added the final figure will be disclosed in its fourth quarter results when they are published next month.

"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," it said.

Jobs, jobs, jobs, jobs

The tax reform was passed in the week before Christmas, with the House of Representatives voting by 224 to 201 to approve the bill. At the time, Trump said it will mean "jobs, jobs, jobs, jobs".

After the announcement, US telecoms giant AT&T rewarded its 200,000 workers with a special $1,000 Christmas bonus, with its chief executive labelling the move a "monumental plan".

However, others have criticised the move. John Ferguson, director of global forecasting at the Economist Intelligence Unit, suggested it could lead to interest rate increases, effectively wiping out its benefits for growth.

Read more: Goldman Sachs' fourth-quarter earnings take a hit on Trump tax changes

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