The Chancellor delivered the Spring Statement 2022 today.
Despite the speculation and calls for a windfall tax there was no announcement on any changes to the oil tax rates. Therefore, the rates will continue to be those currently enacted being 30% for ring fence corporation tax and 10% for the supplementary charge to corporation tax.
In addition, there was no announcement on any changes to the calculation of profits chargeable to ring fence taxation. Neither was oil and gas taxation mentioned in the Spring Statement Tax Plan.
While there have been many public statements in the last few weeks that HM Government were not considering changes to oil taxation it is welcome that the Chancellor has once again allowed a stable regime to remain in place. This again is evidence that HM Government understands the importance of fiscal stability and should underpin the plan for more investment in UK domestic oil and gas production in these uncertain times in energy markets.