UK Introduced A 75% Tax, But No One's Ever Paid a Penny. Here's Why
Why Was It Introduced?
According to The Metro, the 2022 Finance Act introduced PIBPT to prevent large businesses specifically those with over 100 million pounds in turnover-from shifting or cashing in valuable energy contracts just before an energy supplier entered administration.
Such practices, according to HMRC, would have pushed massive costs onto the government and consumers and potentially disrupted the energy supply.
A Tax Used As A Warning
Experts believe the tax filled a gap left by slow-moving regulators like Ofgem. Dan Neidle, founder of Tax Policy Associates, called it "a weird measure" that used taxation in place of timely regulation. Others argue it was easier to introduce a tax than to get fast action from existing watchdogs.
Today's quiz. There's a tax on the UK statute book that nobody has ever paid. Not once since it was introduced.
What is it?
The prize is a lifetime subscription to the Tax Policy Associates newsletter.
— Dan Neidle (@DanNeidle) July 25, 2025
Though aimed at energy firms, the law includes provisions to extend its reach to other industries considered vital to public interest.
Why No One Ever Paid
With a steep rate of 75%, the tax was intimidating enough to work exactly as intended. No major companies crossed the asset-shifting line, and PIBPT was never triggered making it one of the most effective yet unused taxes in UK history.
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