Pre-Budget Report – North Sea Fiscal Regime
Oil and gas companies will be affected by further changes 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).
The changes increase the scope of a number of measures including:
- Certain chargeable gains on the swap of UK/UKCS licences with effect from 9 December 2009.
- Certain chargeable gains on reinvested disposal proceeds in new oil trade assets with effect from 9 December 2009.
- Extensions to incentives to invest in fields that have been previously decommissioned with effect from 22 April 2009.
In addition the field allowance thresholds to qualify as an ultra high pressure/high temperature (HPHT) field will be reduced with effect from 1 April 2010.