Policy paper

The Energy (Oil and Gas) Profits Levy Bill

This tax information and impact note is about the introduction of the Energy (Oil and Gas) Profits Levy Bill.

From:
HM Revenue & Customs
Published
11 July 2022

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Energy (Oil and Gas) Profits Levy

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European Convention on Human Rights statement

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Details

The Energy (Oil and Gas) Profits Levy Bill will legislate for the Energy Profits Levy, which applies to oil and gas companies.

Following record high oil and gas prices over the past year due to global circumstances, and to help fund more cost-of-living support for UK families, the government is introducing the Energy Profits Levy. The levy is a new 25% surcharge on the extraordinary profits the oil and gas sector is making, and includes an 80% investment allowance.

The levy applies to profits arising on or after 26 May 2022 to companies within the ring fence corporation tax regime. It will raise around £5 billion over the first year. The legislation includes a sunset clause, effective at the end of December 2025.

You can find out more by reading the:

Published 11 July 2022

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