HM Treasury announces tax changes for oil and gas

Article summary

HM Treasury has announced that the Energy Profits Levy will remain at 75% until March 2028 but will fall back to 40% when oil and gas prices consistently return to normal levels for a sustained period. To combat companies cutting back on investment, the government has introduced an Energy Security Investment Mechanism to encourage industry to raise capital and invest in new and existing projects, securing affordable and reliable domestic energy supply and helping protect 215,000 jobs. The government is also taking steps to accelerate home-grown sources of energy to reduce the UK’s reliance on foreign imports. The government has also published the terms of reference for the oil and gas fiscal regime review that was announced at the Autumn Statement.