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<p>Transferable tax history (TTH) is expected to increase tax receipts from the oil
and gas sector by £65 million between tax years 2018-19 and 2023-24. This is based
on forecast oil and gas prices as set by the independent Office for Budget Responsibility.</p><p>
</p><p>A higher oil price will encourage investment in oil and gas extraction, facilitating
more transactions for oil and gas fields and increasing the use of the TTH mechanism.
Therefore, TTH would help increase revenues from oil and gas through increased production.</p><p>
</p><p>A lower oil price will reduce the incentive for investment and decrease the
likelihood that mature oil and gas fields will be sold. In this scenario the yield
from new investment as a result of TTH will be lower. However, a low oil price is
unlikely to result in TTH having a negative impact on tax receipts.</p><p> </p>
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