Public interest business protection tax proposed

A new tax on the profits that could arise when a business takes a valuable asset for its own benefit and as a result precipitates the collapse of an energy supply business has been proposed by the government.

It considers there is a potential risk that some companies in the energy market and their shareholders might monetise large profits on such assets for their own benefit leaving the government and ultimately the wider public to be landed with the costs of ensuring the continuity of supplies of energy to customers.

The tax will have effect for steps taken to obtain value from assets which materially contribute to the energy supply business entering into special measures on or after 28 January 2022 and before 28 January 2023. It will be charged at 75% of the adjusted value of the assets and a £100m asset...