- Latest available (Revised)
- Point in Time (10/01/2023)
- Original (As enacted)
Point in time view as at 10/01/2023.
There are currently no known outstanding effects for the Energy (Oil and Gas) Profits Levy Act 2022, Cross Heading: Charge to tax.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(1)If a company carries on a ring fence trade in a qualifying accounting period, a sum equal to [F135%] of its levy profits for that period is to be charged on the company as if it were an amount of corporation tax chargeable on it.
(2)The charge is referred to in this Act as “energy (oil and gas) profits levy” (or as “the levy”).
(3)A qualifying accounting period is an accounting period of a company which—
(a)begins on or after 26 May 2022, and
(b)ends on or before [F231 March 2028],
(but see also sections 15 and 16 for provision about a case where a company’s accounting period straddles either of those dates).
(4)A company’s levy profits or loss for a qualifying accounting period are the amount which, on the following assumptions, would be determined for corporation tax purposes to be the company’s ring fence profits or loss for that period.
(5)The assumptions are that—
(a)the company has incurred such additional expenditure (if any) in that period as is provided for by section 2(3),
(b)that additional expenditure is allowable as a deduction in calculating the amount of the profits or loss of any ring fence trade of the company for the period,
(c)financing costs and decommissioning costs are left out of account in calculating the amount of the profits or loss of any ring fence trade of the company for the period (see also sections 8 and 9),
(d)any amount that would otherwise be brought into account under section 301 of CTA 2010 (effect of repayment of petroleum revenue tax) in calculating the amount of the profits or loss of any ring fence trade of the company for the period is left out of account so far as the amount is referable to the decommissioning part of an allowable loss, and
(e)no account is to be taken of any provision of Part 4, 5 or 5A of CTA 2010 (loss relief, group relief and group relief for carried forward losses) or of sections 303A to 303D of that Act (use of non-decommissioning losses of ring fence trades).
(6)For the purposes of subsection (5)(d) an amount of petroleum revenue tax which is repaid as mentioned in section 301(1) of CTA 2010 is referable to the decommissioning part of an allowable loss so far the allowable loss giving rise to the repayment is attributable, on a just and reasonable basis, to expenditure allowable under section 3(1)(i) or (j) of OTA 1975.
(7)In this Act any reference to the qualifying levy profits or loss of a company for an accounting period are to the levy profits or loss for the period as determined in accordance with subsections (4) and (5).
(8)If a company makes a qualifying levy loss for an accounting period, relief may be available for some or all of the loss in accordance with—
(a)Part 1 of Schedule 1 (carry back or forward of qualifying levy losses), or
(b)Part 2 of that Schedule (group relief for qualifying levy losses).
(9)In accordance with section 11, the charging of the levy as if it were an amount of corporation tax is to be taken as applying all enactments applying generally to corporation tax.
Textual Amendments
F1Word in s. 1(1) substituted (1.1.2023 in relation to accounting periods beginning on or after 1.1.2023) by Finance Act 2023 (c. 1), s. 1(1)(2) (with s. 1(3))
F2Words in s. 1(3)(b) substituted (10.1.2023) by Finance Act 2023 (c. 1), s. 3(1)
Commencement Information
I1S. 1 in force at Royal Assent
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: