• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Bedfordshire
  • Milton Keynes
  • Northamptonshire
  • Awards
  • Knowledge Hub
  • Contact Us
  • About Us
    • Sustainability
    • The Podcast
    • ATB TV
All Things Business

All Things Business

First For Local UK Business News

  • Education
  • Professional Services
    • Legal
    • Finance
    • Recruitment & HR
    • Creative Marketing
  • Property
  • Environment
    • Wellbeing
  • Industry
    • Industry
    • Manufacturing
    • Motors
    • Logistics
    • Technology
  • Events
    • Events
    • Food & Drink
    • Sport
  • News

Windfall tax on energy companies: Chancellor and business secretary need to stand their ground against the windfall tax siren calls – MHA comments

Finance | May 23, 2022

Windfall tax on energy companies: Chancellor and business secretary need to stand their ground against the windfall tax siren calls – MHA comments

Following the growing calls to impose a windfall tax on the profits of energy companies, to address the cost of living crisis, Chris Denning, corporate and international tax partner at MHA, says the Chancellor and business secretary should stick to their guns and hold out against the idea:

“A windfall tax on the profits of energy companies is a crude solution to the cost of living crisis. The Labour party have research showing that the total projected profits for North Sea oil companies in 2022/23 will exceed the combined cost to UK households of an increase in the energy price cap.* The idea is that this makes a windfall tax a fair and proportionate solution to rising energy costs but the analysis is simplistic.

“The calculation would need to take into account the potential impact on future investment, which the tax would likely deter, as well as the hit to institutional investor returns and address whether the tax would also give a tax advantage to non-UK tax resident foreign importers over domestic producers given the UK’s continuing energy import dependency.

“Many ordinary UK savers are members of institutional pension schemes with big investments in UK energy companies, so if a windfall tax impacted dividend payments and capital growth this would hit the pockets of ordinary pensioners.

“In addition UK oil and gas companies are already subject to Corporation Tax (CT) at 30% plus a 10% supplementary charge, which is more than double the standard CT rate of 19%.

So if excess profits are being earned they will already be generating “windfall” tax receipts at the existing tax rates.

“The biggest danger of windfall taxes is that they strike at the certainty of tax law that the UK is justifiably proud of. A windfall tax is in effect a retrospective tax. The potential damage to future investment should make any government extremely nervous.”

Northamptonshire

Related stories

  • Wayne Jenkins of Wilson Browne Solicitors Northamptonshire
    July 5, 2022

    Marketing – all buzz words, presentations and seminars?

    Ask many business owners what ‘marketing’ is, and you’ll likely get a different answer from everyone. Some will say organising events, arranging…
  • Amplitude Media Northamptonshire
    July 5, 2022

    Five days’ work in four days – are we mad?

    If you’ve been following any of the business press over the last couple of months, you’ll have heard about the historic UK…
  • Croyland Car Megastore Northamptonshire
    July 4, 2022

    Croyland celebrates winning National Award for community engagement

    The team at Croyland Car Megastore is celebrating another award win after taking the top title in a prestigious national awards ceremony.…

Primary Sidebar

Stay up to date on All Things Business

Get the latest business round ups, stories and ATB podcasts delivered straight to your inbox.

All Things Business Podcast

Online Edition

Northamptonshire edition, click here
Milton Keynes edition, click here
Bedfordshire edition, click here

Most Read

  • Plumbing and Gas Solutions Strategic changes to drive service to the next level
  • Scott Norville Setbacks prove challenging for lease firm and its clients
  • Eddisons Eddisons makes £1.8m property agency acquisition, strengthening Midlands operation
  • Avery Creative Motivation to find the courage to make changes
  • AFP Services AFP Services – CIMA “SME of the Year” 2022

Footer

REGIONS

Northamptonshire
Milton Keynes
Bedfordshire
 

COMPANY

About Us
Contact
Awards
Podcast
Knowledge Hub
Sustainability
Request A Copy

Northamptonshire Office

1 Queensbridge, Northampton
NN4 7BF
Tel: 01604 267677

Milton Keynes and Bedfordshire Office

The Pinnacle, 170 Midsummer Boulevard, Milton Keynes,
MK9 1BP
Tel: 01908 030688

London Office

25 Bedford Square
London
WC1B 3HH
Tel: 0208 1760176

Follow us on

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter

All Things Business is a publication produced by All Things Management Ltd. Registered in England No. 9590677


Privacy Policy