RE: New Tax27 Nov 2025 07:32
This is a RNS by Serica today.
Update on UK Government consultations
· As announced in the Budget yesterday, the Energy Profits Levy ('EPL') will be retained in its current form until 2030
· After EPL ends, or ceases due to average oil and gas prices falling below triggers set under the Energy Security Investment Mechanism ('ESIM'), currently Brent $76.12/barrel and 0.59p/therm, the government yesterday confirmed that it will be replaced by a new permanent mechanism, the Oil and Gas Price Mechanism ('OGPM'). Unlike EPL, the OGPM will be applied separately to oil and to gas and will tax only the proportion of revenue earned above new OGPM trigger levels, those being $90/barrel and 90p/therm (for 2026 to 2027, then rising with the Consumer Price Index), at a tax rate of 35% (as opposed to 38% for the EPL)
· Also announced yesterday was the North Sea Future Plan. This reconfirmed the government's commitment that all existing licences will be honoured, and licence extensions can be granted. It is not therefore expected that, once legislated, the new regime will impact Serica's current portfolio, future developments, or growth strategy
· The North Sea Future Plan also introduces a new concept of Transitional Energy Certificates which are designed to support further development in currently unlicensed areas adjacent to existing licensed blocks