Energy Profits Levy 2022-11-15
2022-11-15
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from concerns about the surcharge rate of the energy profits levy.
Whether he plans to review the surcharge rate of the energy profits levy. The energy profits levy was introduced on 26 May in response to sharp increases in oil and gas prices, aimed at funding cost of living support for UK households.
The energy profits levy was introduced from 26 May in response to sharp increases in oil and gas prices and to help fund cost of living support for UK households. It is an additional 25% surcharge on UK oil and gas profits. The Government have calculated that they expect the levy to raise more than £7 billion this financial year.
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Assessment & feedback
The specific ask about reviewing the surcharge rate was not directly addressed.
All Taxes Are Kept Under Review At All Times.
Response accuracy
Q2
Partial Answer
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Context
Households and businesses in Northern Ireland are facing high energy costs, while major oil companies like Shell and BP are reporting substantial profits. The current windfall tax does not cover all profitable entities.
Households and businesses are being crippled by energy costs with non-existent support from the Northern Ireland energy scheme. With Shell reporting £8.2 billion in quarterly profit and BP over £7 billion, yet not expected to pay any windfall taxes this year under current rules, will the Chancellor extend the scope of the levy and close loopholes on timing, share buybacks and investment allowances?
To be clear, the levy is an additional 25% surcharge on UK oil and gas profits on top of the existing 40% headline rate of tax, taking the combined rate of tax on those profits to 65%. The hon. Lady is right that the levy contributes to the support that will be going out to Northern Ireland; it will come in a month later, but will be backdated to 1 October, and it will include businesses as well as households.
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Assessment & feedback
The specific ask about extending the scope of the levy and closing loopholes was not directly addressed.
Response accuracy