Energy Profits Levy (Windfall Tax) Calculator UK 2026
Calculate UK Energy Profits Levy (EPL) — the windfall tax on oil and gas companies. Covers the 35% EPL rate and investment allowance for 2026.
Frequently Asked Questions
What is the Energy Profits Levy?
The Energy Profits Levy (EPL) is a temporary windfall tax on profits made by oil and gas companies from UK North Sea extraction. It was introduced in May 2022 and is charged at 35% on top of Ring Fence Corporation Tax (30%) and Supplementary Charge (10%), giving a combined rate of 75%.
When does the Energy Profits Levy end?
The EPL was extended by the Autumn 2024 Budget and is currently due to end on 31 March 2030 or earlier if energy prices fall below a set threshold for two consecutive quarters.
What is the EPL investment allowance?
There is a 29.1% first-year allowance on qualifying capital investment and a 10% allowance on qualifying operating expenditure. This reduces the amount of profits subject to EPL, incentivising continued investment.
Does the EPL apply to renewable energy?
The EPL applies to oil and gas extraction on the UK continental shelf. Renewable electricity generators are subject to a separate Electricity Generator Levy at 45% on receipts above £75/MWh.
Who pays the Energy Profits Levy?
The EPL applies to companies that are subject to UK Ring Fence Corporation Tax — meaning companies that extract oil and gas from the UK continental shelf.