Country Report
United Kingdom upstream fiscal summary
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
All upstream projects in the UK are governed by concessions. Licences were awarded in regular rounds with fixed fiscal terms. However, after September 2022, 3 tests are performed to decide whether to hold the licensing rounds in the future to meet the climate change objectives. Over the years, the tax system has seen numerous changes, the most recent being the increase in Energy Profits Levy (EPL) and its extension to March 2030. The mature UK Continental Shelf features a progressive profit-based tax regime with no up-front taxes and generous capital uplifts. The key elements are the Ring Fence Corporation Tax (RFCT), Supplementary Charge (SC) and Energy Profits Levy (EPL).
Table of contents
- Basis
-
Licence terms
- (Offshore) Innovate Licence
- (Onshore)Petroleum Exploration and Development Licence
- Government equity participation
-
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Ring Fence Corporation Tax (RFCT)
- Ring fencing
- Base
- Income
- Ded u ctions
- Rate
- Payment schedule
- Supplementary Charge (SC)
- Ring fencing
- Rate
- Payment schedule
- Ring fencing
- Base
- Rate
- Payment schedule
- Fiscal treatment of decommissioning
- Tax rules
- Transferrable Tax History (TTH)
- Product pricing
- Summary of modelled terms
- Recent history of fiscal changes
- Stability provisions
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
- Progressivity
- Fiscal deterrence
Tables and charts
This report includes 16 images and tables including:
- Timeline
- Timeline detail
- 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
- Bonuses, rentals and fees
- Area rentals
- Indirect taxes
- Assumed terms by location - oil and gas
What's included
This report contains:
Other reports you may be interested in
Country Report
United Kingdom upstream summary
Provides a detailed description of reserves, production, infrastructure and fiscal terms for the UK upstream sector.
$9,450
Country Report
United Kingdom upstream summary slides
A slide-pack summarising the key upstream issues in the United Kingdom is available from the downloads section.
$4,750
Country Report
India upstream fiscal summary
Detailed analysis of the fiscal system applicable to new licences.
$1,650
