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.”
