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<p>The Government, with technical advice from the Oil and Gas Authority (OGA) and
representations from the industry via the trade body Oil and Gas UK, assesses that
there will be instances when companies hoping to purchase mature fields will be in
a position to extract more value from the field through investment than their current
owner.</p><p> </p><p>However, there is a barrier to these deals taking place due to
the uncertainty around whether the buyer will obtain equivalent decommissioning tax
relief.</p><p> </p><p>Transferable Tax History (TTH) overcomes this uncertainty, enabling
companies to complete asset deals on mature fields and allowing new investment to
take place. Without TTH, transactions for mature assets are expected to be less common
and the increased revenue from production is not realised.</p><p> </p><p>More details
can be found in the published policy paper, <em>“Oil and gas taxation: transferable
tax history and retention of decommissioning expenditure”</em>.</p><p> </p>
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