The energy firm said the total amount of taxes paid in 2025 include £422 million raised from the energy profits levy.
BP has said it paid £1.2 billion in UK taxes last year as the oil giant hailed its economic contribution amid Government plans to raise more by closing a tax loophole on overseas activities.
It also said its North Sea operations were helping boost the economy at a time when fresh legislation aims to block new fossil fuel licences.
The energy firm said the total amount of taxes paid in 2025 include £422 million raised from the energy profits levy.
The levy, which is widely known as a windfall tax, is charged on profits generated from oil and gas production at a rate of 38%.
BP also paid corporation tax, employer national insurance contributions, business rates and customs duties last year.
Taking into account taxes that BP collected and paid to the Government – including employee income tax, VAT and excise duty – its total tax bill was £3.4 billion in 2025.
The tax report comes after Chancellor Rachel Reeves announced plans last month to close a tax loophole on the overseas activities of oil and gas firms and raise hundreds of millions of pounds.
In a speech outlining cost-of-living support measures for households and businesses, Ms Reeves said she would stop firms – including BP – from reducing their tax liabilities by using corporate structures involving foreign branches.
Results from BP and Shell earlier this year showed ballooning profits thanks to bumper results in their energy trading businesses because of soaring oil prices caused by the Iran war.
BP’s first quarter profits more than doubled to 3.2 billion US dollars (£2.4 billion) with its traders able to capitalise on highly volatile oil prices.
BP said it employed 12,960 people in 2025 but supported an estimated 63,000 jobs in the UK, which includes people working along its supply chain.
Analysts at Oxford Economics also estimated that the business contributed £7 billion to UK gross domestic product (GDP).
Louise Kingham, BP’s UK head of country, said the figure “includes our North Sea oil and gas operations, our nationwide network of more than 1,100 retail sites, our aviation fuelling business serving more than 60 airports, lower carbon energy investments, our London trading hub, research centres and more”.
Last month, the Government unveiled plans for an Energy Independence Bill, designed to meet a Labour manifesto pledge to not issue new licences to explore new oil and gas fields.
Energy Secretary Ed Miliband has said “clean home-grown energy” like nuclear, wind and solar power will provide energy independence for the UK for the future, but that existing oil and gas fields could stay open for their lifetime.
The plans have faced criticism from political opponents including Conservative shadow energy secretary Claire Coutinho, who said it risks leaving the UK “more dependent on foreign countries” for its energy supply.
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