UK’s fracking firms might be qualified for tax breaks
Fracking companies may get help from tax breaks by using a loophole in the government’s windfall tax.
That’s the suggestion from a analysis uploaded by the campaign society Uplift which implies the investment allocation tied to Energy Profits Levy could prolong to fracking companies, which may have the ability to take even more tax relief than offshore oil and gas firms.
They note that this allowance provides a loophole in the windfall tax and means that whatever a company invests in North Sea oil and gas, will be discounted from their windfall tax bill.
“Despite a historic cost of living crisis, the government is trying to rush through yet another massive subsidy for oil and gas companies, Tessa Khan, Director of Uplift, stated.
“The energy levy is supposed to ease the burden of rising energy bills for UK households, but this investment loophole allows companies to slash their tax bill if they build more polluting, unsustainable oil and gas projects.
“It is outrageous that fracking companies may be able to benefit from this subsidy when fracking like oil and gas drilling does nothing to ensure safe, affordable energy for people in the UK.”
Two months ago, the government brought out a review on the newest science in fracking.
“As set out in the British Energy Security Strategy & with Putin’s invasion of Ukraine illustrating the merit of this, the North Sea oil and gas sector is going to be crucial to the UK’s domestic energy supply and security for the foreseeable future so it is right we continue to encourage investment while continuing our focus on cutting emissions, A HM spokesperson said.
“We’re also ensuring the UK continues to invest in clean energy too through incentives such as the super deduction, the UK’s competitive R&D tax relief regime and the Contracts for Difference scheme.
“The Chancellor has made clear he will reform and cut taxes on investment in the autumn, and we’re currently working with industry on how best to do this.”
UK’s fracking firms might be qualified for tax breaks
