A technical note released by the government sheds light on a new investment exemption for the Electricity Generator Levy (EGL), aiming to promote renewable energy investments.
The EGL, a tax on extraordinary returns of electricity generators introduced in January 2023, is a time-limited measure responding to geopolitical events impacting UK electricity prices.
The exemption, applicable to projects decided on or after 22nd November 2023, ensures that receipts from new electricity generating stations or additional capacity will not be subject to the EGL.
This move is anticipated to strengthen incentives for investments in renewable energy generation, aligning with the government’s net zero goals.
The technical note provides details on the conditions and factors determining the eligibility of projects for the exemption, encouraging stakeholder feedback for further guidance from HM Revenue and Customs.
