SunSirs: UK Crude Oil Windfall Tax has been Extended by One Year to 2029
March 07 2024 10:24:42 SunSirs (Selena)
According to foreign sources on March 6th, British Chancellor of the Exchequer Jeremy Hunt stated in his spring budget statement that the UK will extend the period for levying a windfall tax on North Sea oil and gas operators by one year, until March 2029.
The Energy Profits Levy (commonly known as the "windfall tax") was first implemented in May 2022 in the UK. In the fourth quarter of 2022, the windfall tax rate was raised to 35% and the collection period was extended to 2028, which resulted in the total tax rate of the UK oil and gas industry rising to 75%, the highest among all industries in the UK.
However, Hunt added in the spring budget statement, "If market prices fall to historical normal levels earlier than expected, relevant taxes will be cancelled."
David Whitehouse, CEO of OEUK, previously stated that a windfall tax on UK North Sea producers is hitting energy companies, and the company has announced a reduction in investment and a delay in drilling plans.
The windfall tax has prompted many overseas companies operating in the UK to reduce investments and re-examine projects.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.
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