Energy (Oil and Gas) Profits Levy Act 2022 section 5

Carry forward of qualifying levy losses to subsequent qualifying accounting period

Section 5 deals with how unrelieved qualifying levy losses from one accounting period can be carried forward to reduce levy profits in future periods.

• Where a company with a ring fence trade makes a qualifying levy loss in a qualifying accounting period, it is entitled to carry forward relief under this provision.
• The relief applies only to the portion of the loss that has not already been relieved under any other provision — this unrelieved portion is known as the "unrelieved loss".
• The unrelieved loss is carried forward to subsequent qualifying accounting periods, provided the company continues to carry on the ring fence trade.
• The qualifying levy profits of any subsequent period are reduced by the unrelieved loss, but only to the extent that loss has not already been used to reduce profits of an earlier period.