UK Introducing Energy Security Investment Mechanism to Remove Energy Profits Levy if Prices Fall to Historically Normal Levels

UK HM Treasury has announced that the 35% Energy Profits Levy (EPL) for oil and gas companies will remain in place until March 2028, although a new Energy Security Investment Mechanism will be introduced that essentially removes the EPL if oil and gas prices fall to historically normal levels for a sustained period (reportedly 6 months). The 35% EPL is charged in addition to the 30% corporation tax and the 10% supplementary charge, resulting in a marginal tax rate of 75%.

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New oil and …