Business
Changes to the Energy Profits Levy
Changes to the Energy Profits Levy.
About this update from Jersey Oil & Gas Plc
[{"type":"text","content":"\n\n30 July 2024\n \nJersey Oil and Gas plc\n(\"Jersey Oil & Gas\", \"JOG\" or the \"Company\")\n \nChanges to the Energy Profits Levy\n \nJersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, advises of changes announced to the Energy Profits Levy (\"EPL\") in a policy paper published on 29 July 2024 as part of announcements made by the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP.\n \n· EPL to increase to 38% from 1 November 2024, bringing the headline rate of tax on upstream oil and gas activities to 78%\n· EPL to be extended to 31 March 2030 with the Energy Security Investment Mechanism remaining in place meaning the levy will cease to apply if prices fall consistently to, or below, historically normal levels for a sustained period\n· The EPL's main 29% investment allowance for qualifying expenditure incurred will be removed from 1 November 2024\n· Capital allowance claims that can be taken into account in calculating EPL profits will be reduced; however the extent of the reduction will only be announced in the October Budget following engagement with stakeholders\n \nThe Greater Buchan Area joint venture will carefully consider the impact of the tax changes to the economics of the development and project sanction. The full implications will, however, only be clear when the level of capital allowance claims available as deductions to the EPL are provided in the October Budget.\n \n \n \nEnquiries:\n\n\n\n\nJersey Oil and Gas plc\n \n\n\nAndrew Benitz\n\n\nc/o Camarco:\n020 3757 4980\n \n\n\n\n\nStrand Hanson Limited\n \n\n\nJames Harris\nMatthew Chandler\nJames Bellman\n \n\n\nTel: 020 7409 3494\n\n\n\n\nZeus Capital Limited\n\n\nSimon Johnson\n\n\nTel: 020 3829 5000\n \n\n\n\n\nCavendish Capital Markets Limited\n \n\n\nNeil McDonald\nLeif Powis\n \n\n\nTel: 020 7220 0500\n\n\n\n\nCamarco\n \n\n\nBilly Clegg\nRebecca Waterworth\n\n\nTel: 020 3757 4980\n\n\n\n\n \n- Ends -\n \nNotes to Editors:\nJersey Oil & Gas (AIM:JOG) is a UK energy company focused on creating shareholder value through the development of oil and ...