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Shell to pay first tax in UK since 2017

Marcus Amudipe
Marcus Amudipe
Shell

Following significant global gains last year, Shell has announced that it will pay taxes in the UK for the first time since 2017.

In the last three months of the year, the energy company predicted that profits in the UK and the EU would “take a knock” of about $2 billion (£1.7 billion).

In order to recoup some of the enormous profits that energy companies have generated from the high prices of oil and gas, governments have put taxes on these businesses.

The amount of UK tax Shell will ultimately pay remains a secret at this time.

Losses, investments in sectors like renewable energy, or decommissioning North Sea oil rigs can all be taken into account when determining how much tax oil and gas corporations must pay in the UK.

The profit for Shell’s global operations between July and September of last year increased dramatically, reaching $9.5 billion.

At the time, Shell claimed that since it had made substantial investments in the UK, it had not generated a profit there and was therefore exempt from paying taxes.

However the business announced on Friday that it will, for the first time since 2017, be expected to pay some tax in the UK.


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