Member

In order to ensure that the tax is not a blocker to the repurposing of oil and gas assets, the changes made by clause 18 and schedule 3 will bring the tax treatment of payments into decommissioning funds for repurposed assets into line with the tax relief available when oil and gas companies decommission assets at the end of their production life. This will accelerate delivery times and reduce costs for CCUS projects, while ensuring that the oil and gas companies that support the transition by repurposing are not disadvantaged. The cost of decommissioning is not an allowable expense with the energy profits levy, so to reflect that, payments received for these assets will not be subject to the levy.