The decarbonisation allowance in the Energy Profits Levy: policy paper

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 sector’s transition to Net Zero by 2050.

15 March 2023 - published