Skip to main content

Energy: Taxation

Question for Treasury

UIN HL281, tabled on 16 May 2022

To ask Her Majesty's Government what plans they have to impose a one-off windfall tax on oil and gas producers' profits.

Answered on

30 May 2022

The Government is introducing the Energy Profits Levy, a new 25% surcharge on the extraordinary profits the oil and gas sector is making.

The new Energy Profits Levy will raise around £5 billion over the next year which will go towards supporting people with the new cost of living measures announced by the Chancellor.

As part of the levy a new tax relief is being introduced to encourage firms to invest in the UK. The new 80% Investment Allowance will mean businesses will overall get a 91p tax saving for every £1 they invest.

Answered by

Treasury