July Statement 2024 Changes to the Energy (Oil and Gas) Profits Levy

Changes to the Energy (Oil and Gas) Profits Levy

The government has announced that the rate of the EPL will increase to 38% from 1 November 2024, bringing the headline rate of tax on upstream oil and gas activities to 78%. The period that the levy applies is also being extended to 31 March 2030. The government will also remove unjustifiably generous investment allowances from the EPL by abolishing the levy's main 29% investment allowance for qualifying expenditure incurred on or after 1 November 2024 and by reducing the extent to which capital allowances can be taken into account in calculating levy profits. Further details of these changes will be announced by the Chancellor at Budget.