Knowledge Centre
Taxation
UK oil and gas tax regime: statistics and information
- An HMT table showing tax revenues collected in past years can be found here
- A PWC report on tax contributed by UK oil and gas producers and supply chain is here
- A list of changes to the UK oil and gas tax regime since 2002 can be found here
- An explanation of the UK oil and gas tax regime (as at October 2011) can be found here
Budget 2011/12 announcements
The industry reacted with shock to the Chancellor's Budget 2011 announcement that the supplementary charge on corporation tax would be increased from 20% to 32%, resulting in a tax rate on UK oil and gas production of between 62% and 81%, and that tax relief on decommissioning costs would be capped at old tax rates.
Oil & Gas UK and its members then worked closely with the Treasury to prove the business case for:
- measures to stimulate investment in fields with marginal economics, many of which were 'fiscally stranded' under the prevailing regime
- the provision of certainty on the continued availability of tax relief on decommissioning costs
In Budget 2012, the Chancellor responded by announcing extended field allowances for small fields and deepwater fields in the west of Shetland as well as legislation to enable extension of hte allowance to new investment in existing fields. The Treasury also announced an intention to consult on a contract to provide assurance on the continued availability of tax relief on decommissioning costs. Please see more details of Oil & Gas UK's response and estimation of the positive impacts of these announcements here.
