Claire Angell, Oil & Gas Tax Partner at KPMG comments in response to today’s Budget speech:
“The ‘Next Generation’ chancellor has shown he has listened to the calls for support from the UK oil industry, and has relieved the burden of taxation with a £1billion reduction over a five year period.
The reduction in the tax rate provides a clear improvement to the tax competitiveness of the North Sea and is very welcome at a time when the industry is struggling with the global economics of the sector.
The effective abolition of Petroleum Revenue Tax (PRT) in particular will provide much needed support for late life assets and infrastructure that is critical to the long term future of the North Sea.
The next step will be to further support new activity in the basin by encouraging exploration - part of the equation to support the next generation of the industry in the UK. This will require sector-wide collaboration between producers, service companies and the Oil and Gas Authority (OGA), to reduce the costs of operating in the North Sea.”
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