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BP sees $2.5 billion UK tax bill this year including windfall levy
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LONDON (Reuters) – BP expects to pay around $2.5 billion in taxes for its British North Sea
LONDON (Reuters) – BP expects to pay around $2.5 billion in taxes for its British North Sea business this year, including $800 million in a windfall tax, a spokesperson said on Tuesday.
Britain in May imposed the 25% Energy Profits Levy (EPL) on North Sea oil and gas producers to raise money to help households struggling to pay their bills after energy prices spiked in the wake of Russia’s invasion of Ukraine.
The EPL, which brings total taxation on UK North Sea oil and gas production to 65%, includes incentives to increase spending in new oil and gas projects.
Shell said last week it did not expect to pay the windfall tax in Britain in the current quarter because its investments offset the tax under the incentive mechanism, while TotalEnergies said it paid $600 million for 4 months of windfall taxation.
Britain’s biggest oil and gas producers https://graphics.reuters.com/BRITAIN-OIL/zdvxowamwpx/chart.png
UK government revenue from oil and gas sector https://graphics.reuters.com/BRITAIN-OIL/TAX/akpezrnzavr/chart.png
(Reporting by Shadia Nasralla, Editing by Louise Heavens, Kirsten Donovan)
The Energy Profits Levy (EPL) is a 25% tax imposed on profits made by oil and gas producers in the UK, aimed at raising funds to support households during energy price spikes.
Corporate tax is a tax imposed on the income or profit of corporations, which varies by jurisdiction and can significantly impact a company's financial performance.
Oil and gas producers are companies involved in the exploration, extraction, and production of oil and natural gas resources, which are critical to the energy sector.
Total taxation refers to the overall tax burden imposed on a business or individual, including various forms of taxes such as income tax, corporate tax, and specific levies like the EPL.
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