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<p>At the Autumn Budget, the government announced it would introduce a Transferable
Tax History for oil & gas companies. This will give investors in UK oil and gas
fields certainty that they will be able to get tax relief for decommissioning assets.
This should encourage new investment in older oil and gas fields, keeping them producing
for longer and supporting employment.</p><p> </p><p>The main industry body, Oil and
Gas UK, in response to the Budget announcement have said that a Transferable Tax History
would be <em>‘a vital step that can bring in new investment to increase recovery from
existing fields and fund fresh investment which is key to generating activity for
our hard-pressed supply chain. It will also help extend the lives of many mature fields
and postpone decommissioning.’</em></p><p> </p><p>This builds on the £2.3bn of fiscal
support the government has already provided to the UK oil and gas industry, including
a package of tax cuts across Budget 2015 and 2016, £40m of funding for seismic surveys
to support exploration, and the introduction of a new Investment Allowance. As a result,
the UK now has one of the most competitive tax regimes in the world for oil and gas,
further supporting investment and jobs.</p>
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