Today’s announcements by the Chancellor Kwasi Kwarteng did not contain any changes to the current corporate taxation rules specifically aimed at the oil and gas sector.
In particular, there was no announcement of a change to the energy (oil and gas) profits levy enacted in July this year. CW Energy continues to monitor the implications of this levy, working with clients to understand its impact.
For industry generally, as widely predicted the non-ring fence corporation tax rate will not be increased to 25% in April 2023 but will remain at the current 19% rate.
As also previously suggested, recent reforms to IR35 are to be repealed such that workers providing their services via an intermediary company will effectively be responsible for determining their employment status and paying the appropriate amount of tax and NICs.