The decarbonisation allowance in the Energy Profits Levy
This tax information and impact note is about the introduction of an 80% investment allowance in the Energy Profits Levy for qualifying expenditure on decarbonising upstream oil and gas production.
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This measure introduces a higher investment allowance rate within the Energy Profits Levy for expenditure incurred on or after 1 January 2023 on the decarbonisation of oil and gas production. Qualifying expenditure will get allowance at 80%, compared to the main rate of 29%. Qualifying expenditure includes capital expenditure on powering oil and gas production facilities from non- fossil fuel sources, and the reduction or elimination of flaring and venting of greenhouse gases, helping to support the oil and gas sector바카라 사이트™s transition to Net Zero by 2050.