Consultation closes May 28, 2025
The government launched a consultation on the future of oil and gas taxation in the UK that proposes a new oil and gas price mechanism for taxing oil and gas income arising in the UK when there are price shocks.
This new “windfall tax” would replace the Energy Profits Levy (EPL) first introduced in 2022 and due to end in 2030.
Two options are put forward:
Under both options separate oil and gas price thresholds may be introduced to recognize the differences between oil and gas prices, but the government has not yet given any indication of the thresholds.
The consultation closes on May 28, 2025.
Read a March 2025 report prepared by the KPMG member firm in the UK