OT21775 - Energy Profits Levy: When investment expenditure is incurred 

EPLA22\S7

For capital expenditure, the expenditure is treated as incurred according to the rules in CAA01\S5 – that is, expenditure is treated as incurred on the date on which the obligation to pay becomes unconditional. Further guidance can be found here: CA11800.

In the case of operating expenditure or leasing expenditure, the expenditure is treated as incurred on the date on which it is paid.

Any investment expenditure which is (or is treated as) incurred before 26 May 2022 or after 31 March 2028 is to be left out of account in determining a company’s levy profits or loss for any qualifying accounting period.