# UK Treasury Assesses AI Tax Impacts

HM Treasury and the Department for Science, Innovation and Technology are assessing whether AI-driven job losses could reduce income tax and National Insurance receipts, and whether revenue might shift from labour taxation toward capital or AI-related returns. This is early-stage scenario planning, not a tax proposal or procurement opportunity; officials indicate policy action may be several years away.

- No new solicitation, contract, tax rule, or contractor compliance requirement is identified.
- AI firms and government contractors can track the UK policy discussions and possible international coordination cited in the signal; any change in tax treatment remains prospective.
- For procurement planning, this is a long-term policy consideration rather than a near-term change to sourcing or contract requirements.

**Jurisdictions:** international
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** November 14, 2026

### Government Entities
- HM Treasury (Treasury)
- Department for Science, Innovation and Technology (DSIT)

### Key Quotes
> Given the existential risk to the social contract posed by an AI-induced spike in structural unemployment, the Government should be looking to rebalance the tax system: reducing, and ideally eventually removing, taxes on employment and raising that revenue elsewhere.
> — Rishi Sunak, former Prime Minister

### Sources
- [Healey wargaming tax on AI](https://www.telegraph.co.uk/money/tax/news/healey-wargaming-tax-on-ai) - The Telegraph