Electricity generator levy

Electricity generators generally pay standard corporation tax rates and abide by corporation tax rules. However, Finance Act 2023 (No 2), sections 278-312, introduced an additional 45% levy on revenues generated from producing electricity from nuclear, renewable, biomass, and energy from waste sources in the UK (the levy), effective from 1 January 2023 to 31 March 2028. This note explores the background, mechanisms, and broader implications of this levy.