What does section 17 of the Energy (Oil and Gas) Profits Levy Act 2022 do?

Section 17 establishes an anti-duplication rule preventing the same amount of loss or other relievable amount from being used more than once to reduce the Energy Profits Levy. A company cannot claim the same amount through multiple forms of relief or surrender it as levy group relief to more than one group company.

Can a company use the same losses both for its own levy relief and as levy group relief?

No. Under section 17, a surrendering company cannot use the same amount both to reduce its own Energy Profits Levy liability through another form of relief and also surrender that same amount to another group company as levy group relief. The company must choose one route for each specific amount.

Can the same amount be surrendered as levy group relief to two different group companies?

No. Section 17 prevents the same amount from being surrendered as levy group relief more than once. For example, a company cannot surrender £5 million of losses to two separate group companies each claiming £5 million. Once an amount has been used in one claim, it is exhausted.

How should group companies allocate qualifying losses for the Energy Profits Levy?

Companies within a group must carefully track how amounts are allocated and ensure total relief claimed across the group does not exceed the amount actually available for surrender. For instance, if a company uses part of its losses for its own relief, only the remaining balance may be surrendered as levy group relief.

Energy (Oil and Gas) Profits Levy Act 2022 section 17

Prohibition on claiming relief more than once for the same amount

Section 17 prevents the same amount from being used more than once to reduce the Energy Profits Levy, whether through a combination of different reliefs or through multiple claims for levy group relief.

A particular amount of loss or other relievable amount can only be used once to reduce the Energy Profits Levy.
A surrendering company cannot use the same amount both as levy group relief and as some other form of relief against its own levy liability.
The same amount cannot be surrendered as levy group relief more than once, for example to two different group companies.
This rule applies regardless of the accounting period in which the other relief might otherwise be claimed.

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