Hartshead to Benefit from UK Windfall Tax Investment Allowance
- Hartshead set to receive incentives under the new UK oil & gas sector windfall tax as the Company progresses through the pre-development stage of its Phase I assets.
- A new “Super Deduction” style Investment Allowance has been introduced as part of the Levy to incentivise oil & gas investment and promote UK energy security.
- Hartshead will benefit from material tax relief on the investment in the Phase I development of the Anning and Somerville gas fields.
- New Investment Allowance increases tax relief from 46 pence to 91 pence for every £1 of capital expenditure further improving the Phase I development economics and increasing attractiveness to potential industry partners.
- Under the Investment Allowance Hartshead’s Phase I development will not be subject to taxation until FY2028.
Hartshead Resources NL (ASX:HHR) (Hartshead, HHR or the Company) has reviewed the potential impact of the UK Energy Profits Levy (“Levy” or “Windfall Tax”), announced by the UK Government on 26 May 2022, and concluded that Hartshead will benefit materially from the Levy due to tax relief resulting from the New Investment Allowance.
CEO of Hartshead, Chris Lewis, commented: “We are pleased to announce that Hartshead is set to receive incentives under the new UK oil & gas sector windfall tax, further increasing the attractiveness of the project to potential industry partners. The Tax Levy represents a strong commitment from the UK Government and reiterates their commitment to energy security both within the UK, but also within Europe.”
