Autumn Statement 2023 oil and gas tax announcements
Documents related to the government's plan to support investment in oil and gas through the tax regime.
At the 2023 Autumn Statement, the government announced a package of measures to set out its short, medium and long-term plan to support investment in oil and gas through the tax regime. These measures will give the oil and gas sector and its investors more certainty, recognising the vital role the sector continues to play in supporting the country’s energy security, as well as its importance as an economic asset and the significant tax contributions of the sector since production began.
Energy Profits Levy Energy Security Investment Mechanism
To provide certainty in the short-term, the government has published a technical note setting out the final details of the Energy Profits Levy (EPL) Energy Security Investment Mechanism (ESIM). This follows the announcement in June that the EPL will cease if oil and gas prices fall for a sustained period prior to the statutory 31 March 2028 sunset date of the levy. A summary of responses has also been published setting out stakeholder feedback on the EPL ESIM discussion note published in July and the government’s response. The government also announced that it will introduce legislation to give effect to the ESIM in due course.
Oil and gas fiscal regime review
The government has also published the outcomes of the oil and gas fiscal regime review first announced at Autumn Statement 2022. The conclusions of the review set out how the fiscal regime will continue to support investment towards the country’s energy security over the longer term, including setting out principles for the tax treatment of future oil and gas price shocks after the end of the EPL. Consistent with the aims of the review, this will provide investors with more predictability and meets the government’s commitment to conclude the review by the end of the calendar year.