The Parliament of Great Britain passes the Tea Act, designed to save the British East India Company by reducing taxes on its tea and granting it the right to sell tea directly to North America. The legislation leads to the Boston Tea Party.

The Parliament of Great Britain was formed in May 1707 following the ratification of the Acts of Union by both the Parliament of England and the Parliament of Scotland. The Acts ratified the treaty of Union which created a new unified Kingdom of Great Britain and created the parliament of Great Britain located in the former home of the English parliament in the Palace of Westminster, near the City of London. This lasted nearly a century, until the Acts of Union 1800 merged the separate British and Irish Parliaments into a single Parliament of the United Kingdom with effect from 1 January 1801.

The Tea Act 1773 was an act of the Parliament of Great Britain. The principal objective was to reduce the massive amount of tea held by the financially troubled British East India Company in its London warehouses and to help the struggling company survive. A related objective was to undercut the price of illegal tea, smuggled into Britain's North American colonies. This was intended to convince the colonists to purchase Company tea on which the Townshend duties were paid, leading the colonists to implicitly agree to Parliament's right of taxation. Smuggled tea was a large issue for Britain and the East India Company, since approximately 86% of all the tea in America at the time was smuggled Dutch tea.

The East India Company (EIC) was an English, and later British, joint-stock company that was founded in 1600 and dissolved in 1874. It was formed to trade in the Indian Ocean region, initially with the East Indies, and later with East Asia. The company gained control of large parts of the Indian subcontinent and Hong Kong. At its peak, the company was the largest corporation in the world by various measures and had its own armed forces in the form of the company's three presidency armies, totalling about 260,000 soldiers, twice the size of the British Army at certain times.