Allowances oil and gas
UK resident companies, and companies with a UK permanent establishment, are potentially subject to three levels of tax on their profits from oil and gas exploration and production:. Corporation tax is applied to oil and gas profits at a higher rate than applies to other activities. The profit base for SC is the corporation tax profit base adjusted for financing items and investment allowances. PRT is applied on an oil field by oil field basis, and is deductible against corporation tax and SC profits.
Oil and gas taxation
We use cookies to collect information about how you use GOV. We use this information to make the website work as well as possible and improve government services. You can change your cookie settings at any time. In the Summer Budget , the government announced that the meaning of investment expenditure would be extended for oil and gas companies claiming Investment and Cluster Area allowances.
Draft legislation: Investment Allowance for oil and gas companies for this measure has also been published. To help us improve GOV. It will take only 2 minutes to fill in. Skip to main content. Tell us whether you accept cookies We use cookies to collect information about how you use GOV. Accept all cookies. Set cookie preferences. Stay at home Only go outside for food, health reasons or work but only if you cannot work from home If you go out, stay 2 metres 6ft away from other people at all times Wash your hands as soon as you get home Do not meet others, even friends or family.
Hide message. Home Corporation Tax. Policy paper Investment Allowance for oil and gas companies. Published 16 December Related content Draft legislation: Investment Allowance for oil and gas companies. Explore the topic Corporation Tax. Is this page useful? Maybe Yes this page is useful No this page is not useful.
Thank you for your feedback. Is there anything wrong with this page? What were you doing? What went wrong? Email address.
Taxation of exploration for, and production of, oil and gas in the UK and on the UK Continental Shelf. allowances for virtually all capital expenditure. The ring fence prevents taxable profits from oil and gas extraction in the UK and UKCS being reduced by losses.
Companies undertaking oil and gas exploration, development and production activities in the UK are subject to three tiers of direct taxation in the UK; petroleum revenue tax PRT , corporation tax CT and supplementary charge SC. It is levied on a field by field basis by reference to six-monthly chargeable periods ending 30 June and 31 December. PRT has been abolished for all fields for which development consent was granted on or after 15 March but continues to apply to older fields.
Legislation was introduced in to correct a defect in the rules for the recapture of scientific research allowances following the sale of an oil licence Revenue press release 13 September
We use cookies to collect information about how you use GOV. We use this information to make the website work as well as possible and improve government services.
Oil and gas—corporation tax and the supplementary charge
We use cookies to collect information about how you use GOV. We use this information to make the website work as well as possible and improve government services. You can change your cookie settings at any time. This publication is licensed under the terms of the Open Government Licence v3. To view this licence, visit nationalarchives.
