Budget 2016: North Sea thrown a billion pound lifeline

Budget 2016: North Sea thrown a billion pound lifeline

Claire Angell, Oil & Gas Tax Partner at KPMG comments in response to today’s Budget speech on North Sea tax reliefs.

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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.”

Ends

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For further information please contact:

Ann Burton, KPMG Corporate Communications

M: +44 (0)7467 339 719

E: Ann.Burton@kpmg.co.uk

KPMG Press office

Tel: +44 (0) 207 694 8773

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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