As of today, 1st November 2024, the UK government has raised the Energy Profits Levy (EPL) from 35% to 38%, targeting oil and gas companies operating in the North Sea.
The new measure not only raises the EPL rate but also removes the previous 29% investment allowance, tightening the framework under which energy companies can claim tax relief.
The Budget states, “To help make the UK a clean energy superpower, oil and gas companies will contribute more to support the energy transition.
“The government is increasing the rate of the EPL from 35% to 38%, removing the 29% investment allowance, and extending the levy until 31st March 2030.
“To provide certainty and to support a stable energy transition, 100% first-year allowances in the EPL will remain and the government will consult in early 2025 on how the oil and
gas tax regime should respond to price shocks once the EPL ends in 2030.”
