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Taxation (Tables)
 12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
Disclosure of major components of tax expense (income) Tax on profit
$ million
2024
2023
2022
Current tax
Charge for the yeara
7,187
9,048
12,523
Adjustment in respect of prior years
234
(373)
145
7,421
8,675
12,668
Deferred tax
Origination and reversal of temporary differences in the current yearb
(1,851)
(238)
4,768
Adjustment in respect of prior yearsc
(17)
(568)
(674)
(1,868)
(806)
4,094
Tax charge on profit
5,553
7,869
16,762
a2024 includes a charge of $4 million in respect of Pillar Two income taxes.
b2024 includes a charge of $96 million in respect of the 3% increase in the UK Energy Profits Levy from 1 November 2024 (see Note 1 for further information). 2022 includes a charge of $1,834 million in
respect of the impact of the UK Energy Profits Levy on existing temporary differences unwinding over the period 1 January 2023 to 31 March 2028.
cThe adjustment in respect of prior years reflects the reassessment of the deferred tax balances for prior periods in light of changes in facts and circumstances during the year, including changes to price
assumptions and profit forecasts. 2024 also includes a charge of $213 million (2023 $232 million credit) in respect of a revision to the deferred tax impact of the UK Energy Profits Levy.
Disclosure of reconciliation of items affected by overall tax credit
$ million
2024
2023
2022 excluding
impact of
Rosneft
2022 impact of
Rosnefta
2022
Profit (loss) before taxation
6,782
23,749
40,925
(25,520)
15,405
Tax charge (credit) on profit or lossb
5,553
7,869
17,823
(1,061)
16,762
Effective tax rate
82%
33%
44%
4%
109%
%
Tax rate computed at the weighted average statutory ratec
66
34
42
20
77
Increase (decrease) resulting from
Tax reported in equity-accounted entities
(7)
(2)
(1)
—
(4)
Adjustments in respect of prior years
3
(4)
(1)
—
(3)
Deferred tax not recognized
5
2
(1)
—
(2)
Tax incentives for investment
(2)
—
—
—
(1)
Disposal impactsd
5
—
(3)
—
(8)
Foreign exchange
5
—
1
—
3
Items not deductible for tax purposes
5
2
2
—
5
Impact of bp's decision to exit its shareholding in Rosneft
—
—
—
(16)
27
Tax rate change effect of UK Energy Profits Levye
1
—
4
—
12
Otherf
1
1
1
—
3
Effective tax rate
82
33
44
4
109
aIncludes the impact of bp's decision to exit its shareholding in Rosneft and its other businesses with Rosneft in Russia.
bThe tax credit regarding the impact of Rosneft relates to the release of deferred withholding tax on unremitted earnings.
cCalculated based on the statutory corporate income tax rate applicable in the countries in which the group operates, weighted by the profits and losses before tax in the respective countries.
d2022 primarily relates to the contribution of bp's Angolan business to Azule Energy.
e2024 comprises the deferred tax impact of a 3% increase in the UK Energy Profits Levy (EPL) on existing temporary differences. 2022 includes the deferred tax impact of the introduction of the EPL.
fIncludes the impact of adjustments arising in countries where income tax is paid on our behalf by our government partners for which there is no deferred tax effect. 2024 includes the impact of the non-
taxable gain relating to the remeasurement of bp's pre-existing 49.97% interest in Lightsource bp and the remeasurement of certain US assets excluded from the Lightsource bp acquisition.
Disclosure of deferred tax in the income statement and the balance sheet by category of temporary difference
$ million
Analysis of movements during the year in the net deferred tax liability
2024
2023
At 1 January
5,349
6,618
Exchange adjustments
57
134
Charge (credit) for the year in the income statement
(1,868)
(806)
Charge (credit) for the year in other comprehensive income
(807)
(735)
Charge (credit) for the year in equity
167
56
Acquisitions and disposals
127
82
At 31 December
3,025
5,349
9. Taxation – continued
The following table provides an analysis of deferred tax in the income statement and the balance sheet by category of temporary difference:
$ million
Income statement
Balance sheet
2024
2023
2022
2024
2023
Deferred tax liability
Depreciation
(1,337)
(1,552)
1,863
16,333
17,392
Pension plan surplusesa
62
133
42
1,789
2,568
Derivative financial instruments
40
12
(21)
58
12
Other taxable temporary differencesb
(352)
10
(992)
663
1,020
(1,587)
(1,397)
892
18,843
20,992
Deferred tax asset
Depreciation
(229)
(166)
(309)
(2,373)
(2,141)
Lease liabilities
(209)
(176)
(8)
(1,952)
(1,785)
Pension plan and other post-employment benefit plan deficits
28
(60)
47
(623)
(755)
Decommissioning, environmental and other provisions
425
563
770
(5,623)
(6,042)
Derivative financial instruments
(9)
(14)
(6)
(268)
(136)
Tax credits
(43)
(67)
1,578
(937)
(893)
Loss carry forward
194
296
1,536
(2,285)
(2,467)
Other deductible temporary differencesc
(438)
215
(406)
(1,757)
(1,424)
(281)
591
3,202
(15,818)
(15,643)
Net deferred tax charge (credit) and net deferred tax liability
(1,868)
(806)
4,094
3,025
5,349
Of which – deferred tax liabilities
8,428
9,617
– deferred tax assets
5,403
4,268
aThe 2024 balance sheet reflects a $658 million reduction in the deferred tax liability on defined benefit pension plan surpluses following the reduction in the rate of the authorized surplus payments tax
charge in the UK from 35% to 25%.
bThe 2022 income statement includes amounts relating to deferred withholding tax on unremitted earnings of Rosneft. The 2024 and 2023 balance sheet amounts do not include any temporary differences
that are individually significant.
cThe 2024 and 2023 balance sheet amounts include amounts relating to share based payments and other items.
A summary of temporary differences, unused tax credits and unused tax losses for which deferred tax has not been recognized is shown in the table
below.
$ billion
At 31 December
2024
2023
Unused US state tax lossesa
2.3
2.1
Unused tax losses – other jurisdictionsb
7.3
5.6
Unused tax credits
33.3
31.3
of which – arising in the UKc
29.1
27.3
               – arising in the USd
4.2
4.0
Deductible temporary differencese
23.4
20.7
Taxable temporary differences associated with investments in subsidiaries and equity-accounted entities
0.7
0.7
aFor 2024 the majority of the unused tax losses have no fixed expiry date.
b2024 and 2023 mainly relate to the UK, Brazil and Canada. The majority of the unused tax losses have no fixed expiry date.
cThe UK unused tax credits arise predominantly in overseas branches of UK entities based in jurisdictions with higher statutory corporate income tax rates than the UK. No deferred tax asset has been
recognized on these tax credits as they are unlikely to have value in the future; UK taxes on these overseas branches are largely mitigated by double tax relief in respect of overseas tax. These tax credits
have no fixed expiry date.
dThe US unused tax credits predominantly comprise foreign tax credits. No deferred tax asset has been recognized on these tax credits as they are unlikely to have value in the future. For 2024 these tax
credits expire in the period 2025-2034.
e2024 and 2023 mainly comprise fixed asset temporary differences in overseas branches of UK entities. Substantially all of the temporary differences have no expiry date.
Disclosure of unrecognized deferred tax or write-down of deferred tax assets
$ million
Impact of previously unrecognized deferred tax or write-down of deferred tax assets on tax charge
2024
2023
2022
Current tax benefit relating to the utilization of previously unrecognized deferred tax assets
87
360
492
Deferred tax benefit arising from the reversal of a previous write-down of deferred tax assets
14
3
—
Deferred tax benefit relating to the recognition of previously unrecognized deferred tax assets
280
332
792
Deferred tax expense arising from the write-down of a previously recognized deferred tax asset
111
54
—