Claire Angell, Partner and Head of Energy Tax at KPMG in the UK

Commenting on the changes to the Energy Profits Levy, announced today by HM Treasury, where the Government has announced a new mechanism stating the windfall tax will no longer apply where oil and gas prices hit $71.40 or £0.54p respectively for two consecutive quarters, Claire Angell, Partner and  Head of Energy Tax at KPMG in the UK said:

“Even though forward price curves currently indicate that this relief will never kick in, the Government hope that this provides sufficient downside protection to secure investment to help increase long-term energy security.

“However, with this being the third change to oil taxation in just over a year, fiscal uncertainty for those investing in the UK oil and gas sector remains a challenge for an industry whose future depends on long-term investment decisions.”