Osborne’s Budget Announcements Include Overhaul of North Sea Oil & Gas Tax Regime
March 16, 2016
UK chancellor George Osborne has announced a significant overhaul of the tax regime relating to the North Sea oil and gas industry.
During his Budget speech to the House of Commons, Osborne said that Petroleum Revenue Tax (PRT), which was cut last year from 50 per cent to 35 per cent, will now be “effectively abolished”.
In addition, the supplementary charge for oil companies operating in the North Sea is to be cut from 20 per cent to 10 per cent, with the introduction of that change effectively being backdated to January 1st 2016.
“The oil and gas sector employs hundreds of thousands of people in Scotland and around our country,” Mr Osborne said in his speech.
“In my budget a year ago I made major reductions in taxes, but the oil price has continued to fall so we need to act now for the long term.
“I am today cutting in half the supplementary charge on oil and gas from 20 per cent to 10 per cent and I am effectively abolishing Petroleum Revenue Tax too – backing this key Scottish industry and supporting jobs right across Britain.”
There have been repeated calls from prominent Scottish politicians and representatives of energy sector trade bodies for the chancellor to take action in support of Scotland’s oil and gas sector.
Jobs have been lost on a very significant scale in recent quarters in the industry and numerous operators with interests in the North Sea oil and gas sector have been forced into administration after a sharp decline in energy prices.
The trade body Oil & Gas UK recently revealed that less than £1 billion is expected to be spent on new projects in the North Sea by energy sector operators this year, which is well down on the average spend of almost £8 billion in the first five years of the decade.
If you are worried about your personal finances or you are concerned about your debt management prospects Scotland Debt Solutions may be able to help. Call one of our experts today to arrange a free consultation.
Your personal credit score plays an important part in securing new loans and credit, and can affect your financial life for better or worse. Lenders use the information in your credit file to determine whether you present a high risk of default, and if your credit score is low, you may find it difficult to […]
Credit unions offer a range of financial products including current accounts, savings accounts, and loans, and can be a good alternative to banks and building societies whilst also helping your cash flow. There are credit unions all around the UK, almost 100 of them operating in Scotland. They’re not always widely advertised, however, and although […]
It’s a worrying situation when you realise your outgoings exceed your income, and it can be difficult to prevent debt in this situation, but there are solid steps you can take to get back on track – you just need to act quickly. Increasing your income or reducing the money going out are essentially what […]
If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work. As far as your old employment is concerned, it’s important that you check your final wage slip to […]
If you are a Scottish resident in financial difficulty, you may have entered into a Trust Deed in order to restructure debt repayments to creditors. A Trust Deed is a fixed voluntary agreement made between the debtor and creditor, with the help of a trustee. Debt is broken down into smaller, affordable instalments, typically lasting […]
A Debt Arrangement Scheme (DAS) is a government backed scheme which allows you to repay debt through contractual, monthly instalments without the threat of legal action and incurring penalties or interest. The scheme was established in 2004 for Scottish residents in debt, providing an alternative solution to sequestration, the Scottish equivalent of bankruptcy. A Debt […]