The energy company stated in a note ahead of its quarterly results that the increased UK energy profits levy (EPL) and the EU’s recently introduced “solidarity contribution” will result in a deferred tax impact of $2bn (£1.7bn).

Shell added that this will not affect its Q4 2022 adjusted earnings. The firm has seen significant profits this year, reporting pre-tax profits of $26bn (£21.9bn) in Q2 and $11.4bn (£9.6bn) in Q3.

Payments in Q3 were low due to an investment incentive allowing Shell and other industry firms to reclaim £91.25 per every £100 spent on new investment.

This week a UK parliamentary group described the incentive — which is currently unavailable to power firms — as “perverse”, and that it should be extended to electricity generators, Energy Voice reports.

Shell has set aside $360 million (£303m) for future payments.