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.
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Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.
This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.
Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.
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Country report | Jun 2016
United Kingdom upstream fiscal summary
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