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<p>The Energy Profits Levy (EPL) was introduced in May in response to sharp increases
in oil and gas prices over the past year. At the Autumn Statement 2022, the Chancellor
announced that the rate of the levy would rise by ten percentage points to 35 per
cent, effective from 1 January 2023. The levy has also been extended until 31 March
2028.</p><p> </p><p>The Government has always sought to balance delivering a fair
return for the UK from the use of its resources while providing the right conditions
to attract investment in the North Sea that is key to support domestic jobs and the
nation’s energy security. That is why the levy includes and will retain a new investment
allowance, which means for every £1 businesses invest they will overall get a tax
saving of around 91p.</p><p> </p><p>The Office for Budget Responsibility’s (OBR) forecast
at Autumn Statement 2022 estimates revenues from EPL are expected to be £41.6 billion
between 2022-23 and 2027-28. This is inclusive of the impact of the levy’s investment
allowance.</p>
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