A British nuclear missile suffered an apparent misfire during testing, raising concerns about the effectiveness of the UK's deterrent.
The Ministry of Defence confirmed that an "anomaly" occurred on one of Britain's Trident nuclear-armed submarines on January 30.
Defence Secretary Grant Shapps, who was on board HMS Vanguard at the time, said Britain's nuclear capability "remains beyond doubt".
First Sea Lord Admiral Sir Ben Key was also present as HMS Vanguard was tested after a refit lasting more than seven years.
It is the second such incident in recent years after a missile fired by HMS Vengeance was reported to have malfunctioned in 2016.
One of Britain's four nuclear-armed submarines is on patrol at all times in a policy known as continuous at-sea deterrence.
The UK is one of three Nato countries, with the US and France, that has nuclear weapons, which the alliance regards as its ultimate deterrent against potential aggressors such as Russia.
The Labour opposition called for Mr Shapps to "reassure parliament that this test has no impact on the effectiveness of the UK’s deterrent operations".
"Reports of a Trident test failure are concerning," shadow defence secretary John Healey said.
The firing of a Trident missile was part of the submarine's "demonstration and shakedown" testing after its lengthy maintenance.
Mr Shapps said the submarine and crew "were successfully certified and will rejoin the operational cycle as planned".
"On this occasion, an anomaly did occur, but it was event specific and there are no implications for the reliability of the wider Trident missile systems and stockpiles," he said.
"Nor are there any implications for our ability to fire our nuclear weapons, should the circumstances arise in which we need to do so."
The Ministry of Defence said it could not provide further details. A report in The Sun said the misfire occurred during an exercise the coast of Florida.
It said a dummy Trident missile was launched but its boosters did not ignite and it "just went plop, right next to them", according to an anonymous source.
The UK's nuclear-armed submarines carry American-built Trident 2 D5 nuclear missiles, which can fire at targets more than 6,000 kilometres away, according to the Royal Navy.
Each Vanguard-class submarine can hold up to 16 intercontinental ballistic missiles, but will only carry up to eight Trident rockets and up to 40 nuclear warheads.
The V-class is due to be replaced by the bigger Dreadnought-class submarines in the 2030s.
Between £31 billion ($39.07 billion) and £41 billion has been set aside for the wider programme of replacing the Vanguard-class submarines, which was approved in 2016.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.