The Financial Secretary to the Treasury (Nicky Morgan)
Following the announcement at Budget 2014 that the Government would conduct a review of the oil and gas tax regime, HM Treasury is today publishing a call for evidence—“Review of the oil and gas fiscal regime: a call for evidence”. Copies of the document have been deposited in the Libraries of both Houses.
The review comes at an important time for the UK continental shelf. There is still a considerable amount of oil and gas left to recover—up to around 21 billion barrels of oil equivalent—and the Government’s tax regime has helped support record levels of investment to find and extract it. But exploration and production is becoming harder and more expensive, and the UK is facing competition for capital from other countries.
The review will look to ensure the UK’s oil and gas tax regime continues to encourage investment in the North sea and maximises the benefits of the country’s hydrocarbon resources for the economy, while ensuring a fair share of profits for the nation. The call for evidence marks the beginning of 12 weeks of discussion with the oil and gas industry and other stakeholders about the long-term shape of the tax regime.
The deadline for responses is 3 October 2014.
The call for evidence is available here:
https://www.gov.uk/government/consultations/review-of-the-oil-and-gas-fiscal-regime-a-call-for-evidence.