In May 2022, the government announced the introduction of an Energy (Oil and Gas) Profits levy. The levy was legislated for in the Energy (Oil and Gas) Profits Levy Act 2022 in July 2022.
Changes announced in November 2022 have extended the levy:
“This measure increases the rate of the Energy (Oil and Gas) Profits Levy to 35% from 1 January 2023 and extends the time that the levy applies to 31 March 2028.
This measure also reduces the investment allowance from 80% to 29%. However, the investment allowance will remain at 80% for investment expenditure on upstream decarbonisation.
This change in relation to the treatment of upstream decarbonisation investment expenditure will be legislated for in the Spring Finance Bill 2023 separately.”
https://www.gov.uk/government/publications/changes-to-the-energy-oil-and-gas-profits-levy