Budget 2010 – North Sea Fiscal Regime
A further change has been announced to the package of measures that were introduced in
Finance Act 2009 to provide support through the North Sea fiscal regime for investment in the UK or on the UK Continental Shelf (UKCS).
One of the changes in Finance Act 2009 ensured that a chargeable gain would not arise in certain circumstances where disposal proceeds were reinvested in new oil trade assets and the disposal and acquisition qualified for rollover relief.
The change announced in the 2010 Budget is intended to ensure that reinvestment relief will apply in a group context where the company making the reinvestment is not the same company that made the disposal.
The change will have effect in relation to disposals made on or after 24 March 2010.