Hunt Considers Extending UK Windfall Tax on Oil and Gas at Budget

Chancellor of the Exchequer Jeremy Hunt is weighing proposals to extend the UK’s windfall tax on the profits of oil and gas companies as one of several revenue-raising options under consideration to help finance personal tax cuts at his budget next week.

Extending the energy profits levy, a 35% charge which is due to expire in March 2028, is on a list of possible measures being reviewed by the finance minister, according to people familiar with the matter who requested anonymity discussing budget plans that haven’t been finalized. The list, which also includes potentially scrapping the non-domiciled tax status, details measures the chancellor could deploy to free up cash for cuts in income tax or national insurance if forecasts from the Office for Budget Responsibility detailing his fiscal headroom fail to improve, they said.