Energy (Oil and Gas) Profits Levy Act 2022 section 11

Application of corporation tax provisions

Section 11 ensures that the energy profits levy piggybacks on the existing corporation tax administrative and compliance framework, so that it is assessed, collected, appealed and enforced in the same way as corporation tax, with one notable exception relating to old advance corporation tax rules.

• The levy is treated as if it were corporation tax for the purposes of all general corporation tax legislation, including the Taxes Management Act 1970, subject to any necessary modifications and the Corporation Tax Acts themselves.
• This means the same rules that govern tax returns, accounts, assessments, collection, appeals, penalties, interest on unpaid tax and priority in insolvency all apply to the levy just as they do to corporation tax.
• Any modifications needed to accommodate the specific provisions of the Act (including Schedule 1) are permitted, so the existing rules bend where necessary to fit the levy's particular design.
• The one carve-out is for unrelieved surplus advance corporation tax: the regulations dealing with old ACT credits cannot be used against the levy, and qualifying levy profits are not treated as profits charged to corporation tax for those purposes.