Country report

United Kingdom upstream fiscal summary

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Report summary

Concession fiscal regime which has been simplified such that there are few remaining differences between existing licences of different vintages. Corporation Tax payable on oil and gas activities is ring fenced preventing the taxable income of the oil and gas industry in the UK being reduced by losses from other activities. The ring fenced Corporation Tax rate is higher than the standard corporation tax rate. An additional profits tax is also payable called the Supplementary Charge or SCT. The Investment Allowance and various value allowances exist which reduce the profits subject to SCT. Fields that received development approval before 16 March 1993 are also still liable for Petroleum Revenue Tax (PRT) in addition to CT and SCT. Royalty was abolished for all fields in 2003.

What's included

This report contains

  • Document

    United Kingdom upstream fiscal summary

    PDF 388.85 KB

Table of contents

  • Executive summary
  • Current licence, equity and fiscal terms
  • Fiscal stability
  • Economic analysis

Tables and charts

This report includes 17 images and tables including:

Images

  • Revenue flowchart: UK Concession
  • Timeline
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • State share versus Pre-Share IRR - oil
  • State share versus Pre-Share IRR - gas
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas

Tables

  • Timeline detail
  • Effective royalty rate - onshore, shelf and deepwater, oil and gas
  • Maximum government share - onshore, shelf and deepwater, oil and gas
  • Bonuses, rentals and fees
  • Area rentals
  • Indirect taxes
  • Assumed terms by location - oil and gas

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