Transferable tax history to be introduced for North Sea oil and gas
HM Treasury hopes to attract new entrants to the North Sea with the introduction of an innovative transferable tax history mechanism for deals that complete on or after 1 November 2018.
The proposed transferable tax history mechanism will allow companies selling North Sea oil and gas fields to transfer some of their tax payment history to their buyers. This means that buyers will be able to offset the costs of decommissioning against the transferable tax history.
HM Treasury’s announcement is intended to encourage fresh investment in order to release the estimated 20bn barrels of oil remaining on the UK Continental Shelf (UKCS) and maximise economic recovery.
Under the current rules tax relief for decommissioning expenditure is based on the tax history of the company incurring the expenditure. The government believes that the introduction of transferable tax history will provide potential buyers with more certainty that they will be...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
Home >Articles > Transferable tax history to be introduced for North Sea oil and gas
Transferable tax history to be introduced for North Sea oil and gas
HM Treasury hopes to attract new entrants to the North Sea with the introduction of an innovative transferable tax history mechanism for deals that complete on or after 1 November 2018.
The proposed transferable tax history mechanism will allow companies selling North Sea oil and gas fields to transfer some of their tax payment history to their buyers. This means that buyers will be able to offset the costs of decommissioning against the transferable tax history.
HM Treasury’s announcement is intended to encourage fresh investment in order to release the estimated 20bn barrels of oil remaining on the UK Continental Shelf (UKCS) and maximise economic recovery.
Under the current rules tax relief for decommissioning expenditure is based on the tax history of the company incurring the expenditure. The government believes that the introduction of transferable tax history will provide potential buyers with more certainty that they will be...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
