What does section 19 of the Energy (Oil and Gas) Profits Levy Act 2022 do?

Section 19 ensures that existing corporation tax rules under Chapter 1 of Part 22 of the Corporation Tax Act 2010, which govern transfers of trade without a change of ownership, also apply to reliefs available under the Energy Profits Levy. This maintains consistency between the levy and the wider corporation tax framework during internal business reorganisations.

How are Energy Profits Levy reliefs treated when a trade is transferred within the same group?

When a trade is transferred between companies within the same group without a change in ultimate ownership, the levy reliefs are carried across to the successor company. The same rules that allow corresponding corporation tax reliefs to transfer apply to the Energy Profits Levy reliefs, with any necessary modifications.

What corporation tax rules does section 19 apply to the Energy Profits Levy?

Section 19 applies the rules found in Chapter 1 of Part 22 of the Corporation Tax Act 2010. These rules deal with situations where a trade is transferred but ultimate ownership remains unchanged, ensuring that tax reliefs pass from the transferring company to the receiving company in a consistent manner.

How does section 19 relate to section 18 of the Energy (Oil and Gas) Profits Levy Act 2022?

Section 19 works alongside section 18, which addresses changes in company ownership. Together, these two provisions ensure that the treatment of Energy Profits Levy reliefs mirrors the established corporation tax treatment whenever there is either a transfer of trade or a change in ownership of a company.

Energy (Oil and Gas) Profits Levy Act 2022 section 19

Transfers of trade without a change of ownership

Section 19 ensures that existing corporation tax rules governing transfers of trade without a change of ownership also apply to relief available under the Energy Profits Levy.

Chapter 1 of Part 22 of the Corporation Tax Act 2010 deals with situations where a trade is transferred but there is no change in the ultimate ownership of the business.
These rules are applied, with any necessary modifications, to relief claimed under the Energy Profits Levy provisions.
The effect is that levy reliefs are treated in the same way as the corresponding corporation tax reliefs when a trade transfer occurs without a change of ownership.
This ensures consistency between the Energy Profits Levy and the wider corporation tax framework when businesses are reorganised internally.

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