Policy paper
Changes to the Energy (Oil and Gas) Profits Levy
This tax information and impact note is about the changes to the Energy (Oil and Gas) Profits Levy announced at Autumn Statement 2022.
Documents
Details
This measure increases the rate of the Energy (Oil and Gas) Profits Levy to 35% from 1 January 2023 and extends the time that the levy applies to 31 March 2028. This measure also reduces the investment allowance from 80% to 29%. However, the investment allowance will remain at 80% for investment expenditure on upstream decarbonisation. This change in relation to the treatment of upstream decarbonisation investment expenditure will be legislated for in the Spring Finance Bill 2023 separately.
Published 21 November 2022