Stormy seas ahead for North Sea oil and gas as Chancellor hikes the windfall tax on earnings

Stormy seas ahead for North Sea oil and gas as Chancellor hikes the windfall tax on earnings By Daily Mail City & Finance Reporter Updated: 22:35, 30 October 2024 e-mail View comments North Sea oil and gas firms came under fire yesterday as the Chancellor increased the windfall tax on earnings. The so-called energy profits levy will be raised from 35 per cent to 38 per cent from next month – taking the headline rate of tax for producers to 78 per cent. The duty – which was introduced by the Tories in response to soaring energy prices following Russia’s invasion of Ukraine – will be extended to 2030.

Oil squeeze: The so-called energy profits levy will be raised from 35% to 38% from next month - taking the headline rate of tax for producers to 78% And Rachel Reeves removed the investment allowance, which lets companies offset tax from capital that is re-invested. A spokesman for North Sea oil and gas firm Serica Energy said the level of taxation was ‘fundamentally unsuitable’ and does not ‘reflect that windfall conditions have long since ended’. Harbour Energy, the UK’s largest oil and gas producer, said: ‘The energy profits levy creates a windfall taxation environment without the related windfall prices.



‘We urge the Government to revisit the fiscal regime well ahead of 2030.’ Maurizio Carulli, analyst at wealth manager Quilter Cheviot, said the changes would ‘hamper investment made by energy companies’. RELATED ARTICLES Previous 1 Next Treasury's guilty gamble with Labour's new debt definitions:.

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