UK oil and gas companies expect government to agree windfall tax breather

Oil and gas companies with operations in the UK have made it clear they expect the government to ease the burden of windfall taxes imposed on fossil fuel profits last year after the recent fall in energy prices.

The UK government brought in a windfall levy in May 2022 aiming to harvest some of the soaring profits collected by oil and gas producers and in last November’s Autumn Budget, UK Chancellor of the Exchequer Jeremy Hunt increased the levy to 35% of profits, applicable from 1 January.