The Chartered Institute of Taxation (CIOT) in Scotland has welcomed the Chancellor of the Exchequer’s commitment today (8 March) to consult on the future of late-life oil and gas assets, describing it as “encouraging” for Scotland’s oil and gas industry.
In his budget speech to the House of Commons, Philip Hammond confirmed that a formal discussion paper will be published alongside the Finance Bill when it is published later this month to consider the case for allowing transfers of tax history between buyers and sellers.
The Chancellor also announced that an advisory panel of industry experts will be established to ensure appropriate scrutiny of options. The review will report at the Autumn Budget later this year.
Commenting on the budget, Moira Kelly, chair of the CIOT Scotland Technical Committee said:
“The decision to commission a formal review of arrangements for ageing oil and gas assets is a welcome move from the chancellor and encouraging for Scotland’s oil and gas industry, which has been impacted by the twin challenges of falling global oil prices and ageing production assets.
“Based on the details announced in today’s budget, the review group is likely to have a relatively short time period with which to identify and bring forward proposals to support the industry moving forward.
“Therefore, it will be important to ensure that any recommendations it brings forward should support the twin aims of protecting against any increased exposure to tax relief on decommissioning and removing any fiscal impediment to new investment in the basin through the transfer of assets.
“Such new investment should prolong the life of the North Sea and maximise economic recovery.”
Notes for editors
1. The Chartered Institute of Taxation (CIOT)
The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 18,000 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
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