Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/14/2012

United Kingdom - New allowance for North Sea oil operations  

September 14:  The UK government announced the introduction of a “Brown Field allowance” for oil companies and those involved in oil services businesses that undertake additional development in certain older fields in the UK continental shelf.

The new allowance will have the effect of reducing the tax rate from 62% to 30% on profits of up to £500 million from certain new investments in existing North Sea fields, and is expected to unlock investment in the North Sea.


The Ministerial Statement announcing the measure notes that “as this is a new type of allowance,” it will be reviewed in 2015 to determine that is effective both in terms of stimulating investment and “ensuring a fair return for the taxpayer.”


Read a September 2012 report [PDF 124 KB] the KPMG member firm in the United Kingdom: Weekly Tax Matters (14 September 2012)


Other topics addressed concern:


  • A consultation on the VAT exemption for for-profit providers of higher education
  • The difference between “liable to tax” and “subject to tax”
  • VAT grouping and infringement proceedings against the UK and other EU Member States



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