This analysis is part of the Lexis®PSL Tax team’s summary of the Spring Budget 2017. Some of the links require a LexisPSL subscription. If you are not a subscriber, you can take a free trial here.
Oil and gas—corporation tax and the supplementary charge
The government has announced that it will publish a discussion paper on 20 March 2017 on ‘late-life’ oil and gas assets. This will consider the case for allowing transfers of tax history (including decommissioning obligations) between buyers and sellers, to make it easier for oil and gas assets to be transferred.
In addition, as announced at Summer Budget 2015 and consulted on in 2016, the government is introducing regulations to extend the scope of investment allowances and cluster area allowances. The rules will have retrospective effect to 8 October 2015.
For more information, see Practice Note: Oil and gas—corporation tax and the supplementary charge — Investment allowances (formerly field allowances).
Petroleum revenue tax (PRT) simplification
Since 1 January 2016, PRT has been charged at a zero rate, but it has not been abolished, largely to enable companies to create losses that can be carried back to recover past PRT paid. As announced at AS 2016, FB 2017 will include provisions to simplify the process for opting out of PRT and remove various reporting requirements. Following consultation, the legislation has been revised to make some consequential amendments. The changes have retrospective effect to 23 November 2016 and the revised legislation will be published on 20 March 2017.
For background information on PRT, see Practice Note: Petroleum revenue tax.
See: OOTLAR (para 1.25).
Further analysis on this Spring Budget:
- KEY ANNOUNCEMENTS AND BACKGROUND
- BUSINESS AND ENTERPRISE
- EMPLOYMENT TAXES
- REAL ESTATE TAXES
- TAX ADMINISTRATION AND AVOIDANCE
- INDIRECT TAXES
- INCOME TAX AND NICs
LexisPSL subscribers can access all analysis and insight on the Spring Budget 2017 here. If you are not a subscriber, you can take a free trial here. For further free content on the Spring Budget 2017, sign up to this blog using the sign-up box on this page.