The example below shows how this works for an assumed £100 of capital expenditure.
Tax rateReliefRelief rateAmount of relief (assuming £100 investment) Ring Fence Corporation Tax30%First year capital allowance100%30 Supplementary Charge10%First year capital allowance100%10 Supplementary Charge10%Investment allowance[1]
62.5%6.25 Total tax relief under current scheme   46.25 Energy Profits Levy25%First year capital allowance100%25 Energy Profits Levy25%Investment allowance[2]
80%20 Additional tax relief under new scheme   45 Total tax relief under new scheme   91.25