The UK Government is raising the Energy Profits Levy from 35% to 38%, starting 1st November 2024.
The Energy Profits Levy is a tax on the extraordinary profits of oil and gas companies operating in the UK and on the UK Continental Shelf, introduced in May 2022.
The levy will now last until 31st March 2030.
The Energy Security Investment Mechanism will still allow the levy to end sooner if oil and gas prices fall to a certain level for a long time.
The government will remove some investment allowances, including the 29% allowance for spending after 1st November 2024.
Spending before this date will not be affected.
Capital allowance claims will also be reduced in levy calculations, but the decarbonisation investment allowance will stay.
More details will be shared in the Budget.
The Chancellor said money from these changes will support the move to clean energy, improve security and create sustainable jobs.
