Executive summary
On 21 June 2022, the United Kingdom (UK) Government published draft legislation to bring in the new energy (oil and gas) profits levy (the levy). The consultation period is very short and comments on the draft Bill are requested by 28 June.
The levy applies to a company carrying on a ring fence trade and is charged at the rate of 25% on the levy profits in a qualifying accounting period. At this time, the levy has not been extended to electricity generators as had been rumored as…