Oil and Gas

Oil and Gas Companies

A package of measures has been announced to reform the oil and gas fiscal regime as follows:

  • from 1 January 2015, the rate of the supplementary charge payable in respect of profits from oil and gas production in the UK or on the UK Continental Shelf is reduced to 20%;
  • for chargeable periods ending after 31 December 2015 the rate of petroleum revenue tax payable in respect of profits from oil and gas production is reduced to 35%;
  • for qualifying pre-commencement expenditure incurred in accounting periods ending on or after 5 December 2013, the ring-fence expenditure supplement is extended from six to ten accounting periods and the extended ring fence expenditure supplement is removed;
  • new allowances will be introduced which will remove an amount equal to 62.5% of investment/capital expenditure incurred by a company from its adjusted ring-fence profits which are subject to the supplementary charge.