Chancellor George Osborne today unveiled further tax breaks for oil producers in the North Sea in an attempt to stimulate investment in older fields.
The “Brown Field Allowance” could cut companies’ tax bills by up to £160 million by lower the rate of duty paid on oil from older fields.
It is the latest in a series of reliefs introduced for the industry, after the coalition government was criticised for hiking the supplementary charge on North Sea producers from 20 per cent to 32 per cent last year.
The move is expected to cost the Exchequer £100m per year initially – but officials insist long-term tax revenues will be significantly higher.
Osborne said: “Today’s tax allowance is more good news for the North Sea, good news for jobs and good news for the broader economy.
“It will give companies the incentive to get the most out of older fields, creating jobs and delivering more revenue for taxpayers.
“This government has signalled its absolute determination to get more investment in the North Sea, a huge national asset.”
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Monday 20 May 2013
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