Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
Printer Friendly Version
This analysis is part of the Lexis®PSL Tax team’s summary of the Autumn Budget 2017. Some of the links require a LexisPSL subscription. If you are not a subscriber, you can take a free trial here.
Oil and gas
Following a consultation in spring 2017, the government intends to legislate to enable sellers of oil and gas fields to transfer some of their tax payment histories to the buyers of those fields. This is intended to facilitate the transfer of these assets by enabling buyers to set the costs of decommissioning oil and gas fields at the end of their lives against the sellers’ tax histories. Draft legislation will be published in spring 2018 for inclusion in FB 2019, with the intention that the measures will take effect from 1 November 2018. For information on the previous consultation, see News Analysis: How should late-life oil and gas assets be taxed?
The government will consult in spring 2018 on allowing a petroleum revenue tax (PRT) deduction for decommissioning costs incurred by a previous licence holder, to support transfers of assets where the seller retains the decommissioning liability. For background information on PRT, see Practice Note: Petroleum revenue tax.
In addition, FB 2018 will make it clear that all tariff income (income earned from third parties for the use of assets, such as pipelines) is within the ring fence corporation tax regime. This change will take effect for accounting periods beginning on or after 1 January 2018 and is intended to support the government’s commitment to extend investment and cluster allowances to include tariff income. For information on investment and cluster allowances, see Practice Note: Oil and gas—corporation tax and the supplementary charge—Investment allowances (formerly field allowances).
See: Autumn Budget 2017 (paras 3.54, 3.55 and 3.56), OOTLAR (paras 2.29 and 2.30),TIIN: Ring fence corporation tax: tariff receipts and HM Treasury policy paper: An outline of transferable tax history.
Further Guidance
LexisPSL subscribers can access all analysis and insight on the Autumn Budget 2017. If you are not a subscriber, you can take a free trial here.
0330 161 1234