Oil giant Shell will pay around $2billion (£1.7bn) in UK and EU windfall taxes for the last three months of trading. Bosses at the London firm had said in October the company had not paid any windfall taxes due to its heavy investment in the North Sea.
But speaking to investors this morning, the company said its earnings will fall during the final three months of 2022 due to the UK energy profits levy and additional EU taxes. In May, the Government announced a windfall tax on oil and gas companies. This initially started at 25 per cent but in November the Chancellor said this would be increased further to 35 per cent.
In the third quarter, Shell benefited from an 80 per cent investment allowance linked to the UK windfall tax. This meant that its windfall tax was heavily reduced.
