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<p>The Energy Profit’s Levy investment allowance will be calculated in the same way
as the investment allowance for the existing Supplementary Charge. However, unlike
the Supplementary Charge, it will be available to companies at the point of investment.
This makes it both more immediate and more generous.</p><p> </p><p>Since the Levy
is targeted at the extraordinary profits from oil and gas upstream activities, it
makes sense that any relief for investment must also be related to oil and gas upstream
activities. Such spending can be used to decarbonise oil and gas production, for example,
through electrification. Therefore, any capital expenditure on electrification, as
long as it relates to specific oil activities within the ringfence, will qualify for
the allowance.</p>
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