Mark Andrews, UK Head of Oil & Gas at KPMG, and Claire Angell, UK Head of Oil & Gas Tax at KPMG, comment on the Chancellor’s support for the transfer of late life assets in the North Sea:
Mark Andrews, UK Head of Oil & Gas with professional services firm KPMG, said:
"The degree to which late life assets can find the right ownership and investment is a significant factor in the UK achieving maximising economic recovery (MER). Government, the Oil & Gas Authority and industry recognise there is a potential issue with the inability to transfer tax history. Today's confirmation that there is potential for changes to the fiscal regime to overcome this is very welcome. Recent Budgets have seen a number of positive moves by HM Treasury to support the competitiveness of the UK Continental Shelf (UKCS). The willingness to address this latest issue within a short timescale is a positive signal to the industry, which could ultimately unlock asset transfers and stimulate M&A interest in the basin."
Claire Angell, UK Head of Oil & Gas Tax at KPMG, added:
"This is a positive development, building upon HM Treasury's dialogue with industry and advisors on this important issue. Involving all stakeholders over the coming months, will assist in seeking a workable solution in a short time scale. This will positively influence many asset transfers between buyers and sellers that are underway or in the pipeline.
“However, Government has previously made it clear that any solution will have to be achieved without increasing the cost for the Exchequer.”
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