Knowledge (XXG)

Windfall tax (United Kingdom)

Source 📝

78:, whereby the average post-tax profit in the four years after privatization was multiplied by nine to give the value for the purposes of the tax. The difference between this value and the total market capitalisation based on the company's flotation price was subject to a 23% "windfall tax". The tax was charged to the company and was payable in two instalments on 1 December 1997 and 1 December 1998. 62:
government, which had seen the privatisation of many state-owned assets, at prices which many considered too low. It aimed to "put right the bad deal which customers and taxpayers got from the privatisation of the utilities". The tax produced an estimated one-off income to the government of £5
167:
bank, which could include a windfall tax or the government taking an equity stake. In the event, the bank was not sold on to private investors, but instead came under UK government ownership. It was returned to the private sector in the 2010s.
194:. There were conflicting reports in the media over whether the government was looking into implementing the tax, with suggestions that government ministers were both interested in and opposed to the idea. Despite the 673:"'A windfall tax that give £600 a year to those that need it most... would be a welcome relief' @JimfromOldham lays out Labour's plans to deal with the cost-of-living crisis #Newsnight" 176:
Calls were made for a windfall tax on energy companies during the summer of 2008 in the wake of energy price rises and the environmental record of the oil and gas industry. 120 Labour
737: 758: 30:
have been applied on several occasions since 1997 by United Kingdom governments, in response to company profits that were considered to be excessive or unexpected.
585: 351: 641: 400: 480: 702: 221: 199: 55: 145:, the regional electricity companies and the privatized water and sewerage companies (including such companies now forming part of Hyder, 280: 163:
reported in January 2008 that the government was considering ways of maximising returns to the treasury from the sale of the troubled
67:, a welfare-to-work program that sought to tackle long-term unemployment, as well as providing capital investment for schools and the 328: 533: 728: 212:, who described the recent energy price rises of more than 10% as "unacceptable", and called for a one-off emergency tax. 126: 82: 359: 453: 64: 249: 157:
From 1997 to 2022, no further windfall taxes were levied in the UK. However, calls were made for new ones. The
374: 763: 742: 68: 59: 676: 191: 177: 98: 698: 248:'s government announced a windfall tax for energy companies, to help fund a package to relieve the 47: 694: 58:
campaign to impose a "windfall levy" on the privatised utilities. The tax came after 18 years of
102: 86: 39: 17: 284: 146: 205:
confirmed at the Labour Party conference later that month that the idea had been scrapped.
732: 637: 159: 118: 114: 306: 236:
Labour announced plans to have an annual windfall tax to give back to the least wealthy.
672: 198:
later reporting in early September that such a windfall tax was "still an option", then
138: 134: 122: 110: 94: 51: 752: 558: 506: 426: 245: 225: 187: 164: 725: 646: 261: 202: 182: 90: 611: 224:. Labour said the proposed tax would raise £11bn and aid in the transition to a 220:
A windfall tax on oil and gas companies featured in the Labour manifesto in the
106: 209: 43: 726:
Labour election manifesto 1997 - New Labour, Because Britain Deserves Better
668: 142: 75: 130: 46:
in 1997 introduced a windfall tax on what were described as "the excess
680: 586:"Labour Conference: Unions flex muscles over tax and workers' hours" 329:"House of Commons Hansard Written Answers for 10 Jul 1997 (pt 22)" 642:"Jeremy Corbyn launches most radical Labour manifesto in decades" 208:
The issue was raised again in 2013, led by former Prime Minister
54:". It followed from their manifesto commitment made during the 195: 695:"A striking U-turn to alleviate the UK cost of living crisis" 101:(and the Electricity (Northern Ireland) Order 1992) and the 454:"Cardiac arrest in Glasgow - and still the clunking mantra" 401:"Campaigners call for windfall tax on North Sea oil firms" 743:
Criticism of proposed windfall tax on oil company profits
738:
Windfall Tax (UK) in the Global Investor Finance Glossary
612:"Sir John Major calls for windfall tax on energy profits" 534:"Windfall tax won't avert fuel crisis says minister" 81:
The companies affected were those privatized by the
240:2022 Conservative announcement of a windfall tax 74:The tax was calculated by means of a nine times 350:Parker, George; Croft, Jane (20 January 2008). 375:"British Gas adds fuel to windfall tax debate" 307:"New Labour, because Britain deserves better" 180:supported the call, as well as columnist for 8: 759:Corporate taxation in the United Kingdom 481:"Good for the country, good for Labour" 272: 352:"Windfall tax plan for N Rock buyers" 232:2022 Labour proposal for windfall tax 216:2019 Labour proposal for windfall tax 7: 399:Thornton, Philip (23 October 2006). 63:billion, which was used to fund the 584:Kirkup, James (22 September 2008). 559:"Windfall tax is 'still an option'" 507:"Ministers 'consider' windfall tax" 427:"Pressure for windfall tax mounts" 34:1997 Taxes on privatised utilities 25: 190:and the left-wing pressure group 172:Windfall tax on energy companies 705:from the original on 2022-05-27 452:Toynbee, Polly (26 July 2008). 373:Elliott, Larry (31 July 2008). 532:Waugh, Paul (28 August 2008). 479:Cannon, Zoe (27 August 2008). 1: 745:– Edward Harrison, April 2008 309:. Political Science Resources 283:. HM Treasury. Archived from 117:(later BG plc and Centrica), 18:Windfall Tax (United Kingdom) 127:Northern Ireland Electricity 83:Telecommunications Act 1984 780: 105:. The firms affected were 250:UK cost of living crisis 538:London Evening Standard 69:University for Industry 362:on 29 September 2011. 287:on September 28, 2007 222:2019 general election 149:and Scottish Power). 56:1997 general election 640:(21 November 2019). 99:Electricity Act 1989 699:The Financial Times 731:2000-08-16 at the 565:. 3 September 2008 433:. 6 September 2008 50:of the privatised 618:. 22 October 2013 103:Railways Act 1993 87:Airports Act 1986 16:(Redirected from 771: 714: 713: 711: 710: 691: 685: 684: 671:(May 10, 2022). 665: 659: 658: 656: 654: 638:Stewart, Heather 634: 628: 627: 625: 623: 608: 602: 601: 599: 597: 581: 575: 574: 572: 570: 555: 549: 548: 546: 544: 529: 523: 522: 520: 518: 503: 497: 496: 494: 492: 476: 470: 469: 467: 465: 449: 443: 442: 440: 438: 423: 417: 416: 414: 412: 396: 390: 389: 387: 385: 370: 364: 363: 358:. Archived from 347: 341: 340: 338: 336: 325: 319: 318: 316: 314: 303: 297: 296: 294: 292: 277: 147:United Utilities 21: 779: 778: 774: 773: 772: 770: 769: 768: 749: 748: 733:Wayback Machine 722: 717: 708: 706: 693: 692: 688: 667: 666: 662: 652: 650: 636: 635: 631: 621: 619: 610: 609: 605: 595: 593: 583: 582: 578: 568: 566: 557: 556: 552: 542: 540: 531: 530: 526: 516: 514: 513:. 1 August 2008 505: 504: 500: 490: 488: 478: 477: 473: 463: 461: 451: 450: 446: 436: 434: 425: 424: 420: 410: 408: 405:The Independent 398: 397: 393: 383: 381: 372: 371: 367: 356:Financial Times 349: 348: 344: 334: 332: 331:. UK Parliament 327: 326: 322: 312: 310: 305: 304: 300: 290: 288: 279: 278: 274: 270: 258: 242: 234: 218: 174: 160:Financial Times 155: 153:Other proposals 119:British Telecom 71:(Learndirect). 36: 23: 22: 15: 12: 11: 5: 777: 775: 767: 766: 764:Windfall taxes 761: 751: 750: 747: 746: 740: 735: 721: 720:External links 718: 716: 715: 701:. 2022-05-27. 686: 679:) – via 669:BBC Newsnight 660: 629: 603: 576: 550: 524: 498: 471: 444: 418: 391: 365: 342: 320: 298: 271: 269: 266: 265: 264: 257: 254: 241: 238: 233: 230: 217: 214: 200:Prime Minister 173: 170: 154: 151: 139:Scottish Power 135:Scottish Hydro 123:National Power 111:British Energy 95:Water Act 1989 42:government of 35: 32: 28:Windfall taxes 24: 14: 13: 10: 9: 6: 4: 3: 2: 776: 765: 762: 760: 757: 756: 754: 744: 741: 739: 736: 734: 730: 727: 724: 723: 719: 704: 700: 696: 690: 687: 682: 678: 674: 670: 664: 661: 649: 648: 643: 639: 633: 630: 617: 613: 607: 604: 591: 590:The Telegraph 587: 580: 577: 564: 560: 554: 551: 539: 535: 528: 525: 512: 508: 502: 499: 486: 482: 475: 472: 459: 455: 448: 445: 432: 428: 422: 419: 406: 402: 395: 392: 380: 376: 369: 366: 361: 357: 353: 346: 343: 330: 324: 321: 308: 302: 299: 286: 282: 281:"1997 Budget" 276: 273: 267: 263: 260: 259: 255: 253: 251: 247: 246:Boris Johnson 244:In May 2022, 239: 237: 231: 229: 227: 226:green economy 223: 215: 213: 211: 206: 204: 201: 197: 193: 189: 188:Polly Toynbee 185: 184: 179: 171: 169: 166: 165:Northern Rock 162: 161: 152: 150: 148: 144: 140: 136: 132: 128: 124: 120: 116: 112: 108: 104: 100: 96: 92: 88: 84: 79: 77: 72: 70: 66: 61: 57: 53: 49: 45: 41: 33: 31: 29: 19: 707:. Retrieved 689: 663: 651:. Retrieved 647:The Guardian 645: 632: 620:. Retrieved 615: 606: 594:. Retrieved 589: 579: 567:. Retrieved 562: 553: 541:. Retrieved 537: 527: 515:. Retrieved 510: 501: 489:. Retrieved 485:The Guardian 484: 474: 462:. Retrieved 458:The Guardian 457: 447: 435:. Retrieved 430: 421: 409:. Retrieved 404: 394: 382:. Retrieved 379:The Guardian 378: 368: 360:the original 355: 345: 333:. Retrieved 323: 311:. Retrieved 301: 289:. Retrieved 285:the original 275: 262:Windfall tax 243: 235: 219: 207: 203:Gordon Brown 183:The Guardian 181: 175: 158: 156: 91:Gas Act 1986 80: 73: 60:Conservative 37: 27: 26: 653:21 November 569:4 September 543:4 September 437:6 September 115:British Gas 753:Categories 709:2020-06-12 622:23 October 596:23 October 491:23 October 268:References 210:John Major 186:newspaper 44:Tony Blair 143:Railtrack 76:P/E ratio 52:utilities 729:Archived 703:Archived 616:BBC News 592:. London 563:BBC News 517:1 August 511:BBC News 487:. London 460:. London 431:BBC News 407:. London 256:See also 131:Powergen 65:New Deal 681:Twitter 464:31 July 411:31 July 384:31 July 335:31 July 313:31 July 291:31 July 192:Compass 48:profits 97:, the 93:, the 89:, the 85:, the 40:Labour 677:Tweet 655:2019 624:2013 598:2013 571:2008 545:2008 519:2008 493:2013 466:2008 439:2008 413:2008 386:2008 337:2008 315:2008 293:2008 38:The 196:BBC 178:MPs 107:BAA 755:: 697:. 644:. 614:. 588:. 561:. 536:. 509:. 483:. 456:. 429:. 403:. 377:. 354:. 252:. 228:. 141:, 137:, 133:, 129:, 125:, 121:, 113:, 109:, 712:. 683:. 675:( 657:. 626:. 600:. 573:. 547:. 521:. 495:. 468:. 441:. 415:. 388:. 339:. 317:. 295:. 20:)

Index

Windfall Tax (United Kingdom)
Labour
Tony Blair
profits
utilities
1997 general election
Conservative
New Deal
University for Industry
P/E ratio
Telecommunications Act 1984
Airports Act 1986
Gas Act 1986
Water Act 1989
Electricity Act 1989
Railways Act 1993
BAA
British Energy
British Gas
British Telecom
National Power
Northern Ireland Electricity
Powergen
Scottish Hydro
Scottish Power
Railtrack
United Utilities
Financial Times
Northern Rock
MPs

Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.