United Kingdom

Details

  • Service: Tax, Budget 2014
  • Industry: Oil and Gas
  • Type: Press release
  • Date: 19/03/2014

Budget 2014: UK oil industry disappointed 

Commenting on the impact of measures announced in today’s Budget on the UK Oil and Gas industry, Andrew Lister, Energy Tax Partner at KPMG, said: “Much to the disappointment of all in the oil and gas industry in the UK – and despite extensive consultation with them - the Chancellor confirmed in his Budget that the Government will go ahead with new rules that will increase the cost to companies in this sector of doing business here in the UK. 

 

“The new rules, which were first trailed in December’s Autumn Statement, will apply to oil service companies that use assets of other group companies in the provision of their services.


“The increased costs of those service companies will need to be passed on to the UK companies searching for and extracting oil and gas from UK waters.

 

“The amount of tax estimated to be raised per annum from these proposals is around £130m. The impact on the oil industry is expected to be significant due to the low forecast margins for many new and incremental projects. This will weaken the UK’s competitive position for attracting investment. 

 

“In addition to confirming these changes, a review of the oil and gas fiscal regime was also announced. It may be the opinion of many in the sector that the fiscal review would perhaps have been better served including these changes in its ambit.”


Ends

 

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For further information please contact:


KPMG Press office
Tel:  +44 (0) 207 694 8773
Katy Broomhead, KPMG Corporate Communications
Mobile: 07824 537963
katy.broomhead@kpmg.co.uk


About KPMG:

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

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Katy Broomhead

Katy Broomhead

PR Manager - Transactions, Restructuring & the North West Region

KPMG in the UK

0161 246 4623 / 07824 537963

Email Katy