gopoohgo

gopoohgo t1_iu0c4b5 wrote

>The UK-headquartered oil company said it had not paid the levy and did not expect to throughout 2022, because its British corporate entity did not make any profits during the quarter, in part, because of heavy spending on drilling more oil in the North Sea.

>However, Sunak’s scheme also introduced extended tax breaks for investment in extraction in North Sea oilfields. For every £1 businesses spent in the North Sea, they could reduce their taxes by 91p. It also does not cover profits made from forecourts, from refining or from trading shipments of oil and gas – areas where the company has made huge sums this year.

Appears that the windfall tax pertains to income directly from UK operations and that profits from the UK division were offset by the tax incentive wrote in May 2022 that allowed companies to offset 91% of the cost of North Sea development.

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