Only as recently as November last year, the government reaffirmed that the Energy Profits Levy (EPL) would end in March 2028 in order to provide predictability for the industry. However, in the Budget, the Chancellor announced that the EPL will be extended for an additional year so that the ‘sunset’ will now be March 2029. This measure will not be included in the Spring Finance Bill and so will be enacted at some later stage.
As previously announced, the Chancellor confirmed that the EPL will be ‘switched off’ before the ‘sunset’ under the Energy Security Investment Mechanism (ESIM) if prices fall below certain thresholds (although, based on projections, it is not anticipated that this will happen). The ESIM will be legislated for in the upcoming Spring Finance Bill.
Otherwise, there were no announced changes to the oil and gas tax regime, with the Chancellor markedly noting that he would retain the generous investment allowances, drawing a contrast with recent comments from the Labour Party indicating that they may seek to restrict such reliefs.
Home >Articles > Spring Budget 2024: Extension of Energy Profits Levy
Spring Budget 2024: Extension of Energy Profits Levy
Only as recently as November last year, the government reaffirmed that the Energy Profits Levy (EPL) would end in March 2028 in order to provide predictability for the industry. However, in the Budget, the Chancellor announced that the EPL will be extended for an additional year so that the ‘sunset’ will now be March 2029. This measure will not be included in the Spring Finance Bill and so will be enacted at some later stage.
As previously announced, the Chancellor confirmed that the EPL will be ‘switched off’ before the ‘sunset’ under the Energy Security Investment Mechanism (ESIM) if prices fall below certain thresholds (although, based on projections, it is not anticipated that this will happen). The ESIM will be legislated for in the upcoming Spring Finance Bill.
Otherwise, there were no announced changes to the oil and gas tax regime, with the Chancellor markedly noting that he would retain the generous investment allowances, drawing a contrast with recent comments from the Labour Party indicating that they may seek to restrict such reliefs.
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