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>
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>
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>
More details can be found in the published policy paper, \u201cOil and gas taxation: transferable tax history and retention of decommissioning expenditure\u201d<\/em>.<\/p> <\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4320", "label" : {"_value" : "Biography information for Robert Jenrick"}
}
, "answeringMemberConstituency" : {"_value" : "Newark"}
, "answeringMemberPrinted" : {"_value" : "Robert Jenrick"}
, "dateOfAnswer" : {"_value" : "2018-12-14", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-12-14T08:50:27.2Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2018-12-04", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Offshore Industry: Taxation"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, what assessment the Government has made of the effect of Transferable Tax History on the incentives for buying companies to increase oil and gas production and generate further revenues.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4500", "label" : {"_value" : "Biography information for Clive Lewis"}
}
, "tablingMemberConstituency" : {"_value" : "Norwich South"}
, "tablingMemberPrinted" : [{"_value" : "Clive Lewis"}
], "uin" : "198899"}
, {"_about" : "http://data.parliament.uk/resources/1019935", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1019935/answer", "answerText" : {"_value" : " 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> 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> 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>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4320", "label" : {"_value" : "Biography information for Robert Jenrick"}
}
, "answeringMemberConstituency" : {"_value" : "Newark"}
, "answeringMemberPrinted" : {"_value" : "Robert Jenrick"}
, "dateOfAnswer" : {"_value" : "2018-12-14", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-12-14T08:51:28.883Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2018-12-04", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Offshore Industry: Taxation"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, if he will make an assessment of the effect of trends in the level of oil prices on the cost to the public purse of the Transferable Tax History.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4500", "label" : {"_value" : "Biography information for Clive Lewis"}
}
, "tablingMemberConstituency" : {"_value" : "Norwich South"}
, "tablingMemberPrinted" : [{"_value" : "Clive Lewis"}
], "uin" : "198900"}
, {"_about" : "http://data.parliament.uk/resources/1019939", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1019939/answer", "answerText" : {"_value" : " Transferable tax history will encourage new investment into the North Sea and prolong the productive life of the basin. This will help protect the 280,000 jobs across the UK that are supported by the industry.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4320", "label" : {"_value" : "Biography information for Robert Jenrick"}
}
, "answeringMemberConstituency" : {"_value" : "Newark"}
, "answeringMemberPrinted" : {"_value" : "Robert Jenrick"}
, "dateOfAnswer" : {"_value" : "2018-12-14", "_datatype" : "dateTime"}
, "groupedQuestionUIN" : {"_value" : "198904"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-12-14T08:54:00.51Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2018-12-04", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Offshore Industry: Taxation"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, what plans he has put in place to maintain job security for workers on North Sea oil rigs when Transferable Tax History is implemented.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4500", "label" : {"_value" : "Biography information for Clive Lewis"}
}
, "tablingMemberConstituency" : {"_value" : "Norwich South"}
, "tablingMemberPrinted" : [{"_value" : "Clive Lewis"}
], "uin" : "198901"}
, {"_about" : "http://data.parliament.uk/resources/1019944", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1019944/answer", "answerText" : {"_value" : " Restricting the use of transferable tax history (TTH) in this way will make it an unattractive tool for new entrants to the basin.<\/p> <\/p> TTH has been carefully designed to put new entrants in the same tax position as current licensees. Creating a two-tier system where new entrants must meet stricter criteria than existing operators to receive tax relief will discourage much needed new investment into the basin.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4320", "label" : {"_value" : "Biography information for Robert Jenrick"}
}
, "answeringMemberConstituency" : {"_value" : "Newark"}
, "answeringMemberPrinted" : {"_value" : "Robert Jenrick"}
, "dateOfAnswer" : {"_value" : "2018-12-14", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-12-14T08:55:11.707Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2018-12-04", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Offshore Industry: Taxation"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of limiting Transferable Tax History claims to incoming companies\u2019 investment in (a) infrastructure, (b) maintenance, (c) retraining and (d) methane reduction.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4500", "label" : {"_value" : "Biography information for Clive Lewis"}
}
, "tablingMemberConstituency" : {"_value" : "Norwich South"}
, "tablingMemberPrinted" : [{"_value" : "Clive Lewis"}
], "uin" : "198902"}
, {"_about" : "http://data.parliament.uk/resources/1019945", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1019945/answer", "answerText" : {"_value" : " Government tax revenues from North Sea Oil and Gas companies over the last three years are reproduced in the table below. More details can be found in Table 11.11 in the publication \u201cStatistics of Government revenues from UK Oil and Gas production<\/em>\u201d. Total Government revenue, including oil licence fees, is published by the Oil and Gas Authority at \u201cTable: Government revenues from UK oil and gas production 1964/65-2017/18<\/em>\u201d<\/p> <\/p> <\/p> <\/p><\/td> 2015-16<\/p><\/td> 2016-17<\/p><\/td> 2017-18<\/p><\/td><\/tr> Total tax revenues (£m)<\/p><\/td> -2<\/p><\/td> -350<\/p><\/td> 1,188<\/p><\/td><\/tr> Licence fees (£m)<\/p><\/td> 71<\/p><\/td> 65<\/p><\/td> 62<\/p><\/td><\/tr> Total Gov Revenue (£m)<\/p><\/td> 69<\/p><\/td> -285<\/p><\/td> 1,250<\/p><\/td><\/tr><\/tbody><\/table> <\/p> <\/p> Link to publications: https://www.gov.uk/government/statistics/government-revenues-from-uk-oil-and-gas-production--2<\/a><\/strong><\/p>