Country report
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12 Pages

United Kingdom upstream fiscal summary

United Kingdom upstream fiscal summary

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 includes 1 file(s)

  • United Kingdom upstream fiscal summary PDF - 388.85 KB 12 Pages, 7 Tables, 10 Figures


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.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.

  • Executive summary
  • Current licence, equity and fiscal terms
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
  • Fiscal stability
    • Recent history of fiscal changes
    • Stability provisions
  • Economic analysis
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Progressivity
    • Fiscal deterrence

In this report there are 17 tables or charts, including:

  • Executive summary
    • Revenue flowchart: UK Concession
  • Current licence, equity and fiscal terms
    • Bonuses, rentals and fees
    • Area rentals
    • Indirect taxes
    • Assumed terms by location - oil and gas
  • Fiscal stability
    • Timeline
    • Timeline detail
  • Economic analysis
    • Split of the barrel - oil
    • Split of the barrel - gas
    • Share of profit - oil
    • Share of profit - gas
    • Effective royalty rate - onshore, shelf and deepwater, oil and gas
    • Maximum government share - onshore, shelf and deepwater, oil and 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
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