Policy paper

Oil and gas taxation — Oil and Gas Revenue Levy

This measure is about a new tax on oil and gas companies that will apply in times of high prices.

• From: HM Revenue & Customs
• Published: 13 July 2026

Documents

Oil and Gas Revenue Levy (OGRL)

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Draft legislation

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Draft legislation (accessible version)

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Explanatory note

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Details

This measure introduces a new permanent tax called the Oil and Gas Revenue Levy (OGRL).

This tax will only apply during periods of high prices and will be charged at 35% on the portion of revenues from sales of oil or gas that exceed specified thresholds.

The Oil and Gas Revenue Levy will replace the existing Energy Profits Levy (EPL) once it ends, either on 31 March 2030 or earlier if the Energy Security Investment Mechanism (ESIM) is triggered.

Published 13 July 2026