Energy (Oil and Gas) Profits Levy Act 2022 section 15

Transitional provision for accounting periods straddling 26 May 2022

Section 15 deals with what happens when a company's accounting period straddles the 26 May 2022 start date of the Energy Profits Levy, requiring the period to be split and setting out how instalment payment obligations work for each part.

• Where an accounting period begins before 26 May 2022 and ends on or after that date, it must be split into two deemed separate accounting periods at that date, with levy profits or losses apportioned between them under the rules in section 17.
• The Instalment Payments Regulations 1998 apply separately to the Energy Profits Levy and to all other taxes chargeable on the company for a straddling period, meaning two distinct instalment payment calculations are required.
• For instalment payment purposes, references to a company's "total liability" are read as referring only to the levy when applied to the levy, and as referring to the company's total liability excluding the levy when applied to other taxes.
• A company is treated as a "large company" for instalment payment purposes in relation to the deemed accounting period starting on 26 May 2022 only if it already qualifies as a large company for the original straddling period, determined without regard to the levy itself.