HMRC has issued draft legislation for consultation for the new temporary Energy (Oil and Gas) Profits Levy which was announced last month.

The levy will be set at 25% of profits and will apply to the company's ring-fenced profits from 26 May 2022. It will take the combined tax rate for these companies up to 65%.

The draft legislation includes a sunset clause which means that the levy cannot apply after 31 December 2025 without new legislation being passed by the government.

The consultation closes on 28 June 2022. Responses should be sent to This email address is being protected from spambots. You need JavaScript enabled to view it.

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External link

Open consultation: Draft legislation: Energy (Oil and Gas) Profits Levy Bill 

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