The Energy Security Investment Mechanism – finding a balance

Commenting on the changes to the Energy Profits Levy, announced today by HM Treasury, where the Government has announced a new mechanism stating the windfall tax will no longer apply where oil and gas prices hit $71.40 or £0.54p respectively for two consecutive quarters, Claire Angell, Partner and  Head of Energy Tax at KPMG in the UK said:

“Even though forward price curves currently indicate that this relief will never kick in, the Government hope that this provides sufficient downside protection to secure investment to help increase long-term energy security.

“However, with this being the third change to oil taxation in just over a year, fiscal uncertainty for those investing in the UK oil and gas sector remains a challenge for an industry whose future depends on long-term investment decisions.”

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For further information please contact:

KPMG Media Relations

Claire Barratt

Mobile: +44 (0)7923 439264

claire.barratt@kpmg.co.uk

About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.