Gareth today asked the Chancellor, Rishi Sunak, about the impact of the Government’s new Energy Profits Levy on investment in the North Sea.
The Levy, which taxes oil and gas profits at an elevated rate of 65% (up from 40% previously), also includes an investment allowance by which 91p in every £1 invested can be claimed back against tax. The allowance is twice as generous as the regime it replaced.
In his answer to Gareth, the Chancellor explained that, not only was the level of allowance now more generous, but also the mechanism itself is more helpful with the allowance kicking in at the point of investment.
Alongside immediate support for the most vulnerable, encouraging continued investment will be vital to ensuring the security of the UK’s energy supply and the growth of its economy into the future.
