Jersey Oil & Gas, 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.

• EPL to increase to 38% from 1 November 2024, bringing the headline rate of tax on upstream oil and gas activities to 78%
• 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
• The EPL's main 29% investment allowance for qualifying expenditure incurred will be removed from 1 November 2024
• 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

The 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.

KeyFacts Energy: Jersey Oil and Gas UK country profile