The UK government has launched a consultation on plans to replace the windfall tax on energy companies when it ends in 2030. The Energy Profits Levy (EPL) was introduced in May 2022 after companies recorded high profits due to a sharp rise in energy prices. It was increased in the most recent UK government budget last year and means oil and gas producers are paying a headline tax rate of 78%.
The consultation seeks views on a new tax which would be triggered either when energy prices or profits are exceptionally high. The department for energy security and net zero said it would work to develop a plan that would deliver a “fair return for the nation during times of unusually high prices”.
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