Tuesday 28 June 2011

New oil and gas fields avoid windfall tax?

The new tax levels set in the Chancellor's recent Budget, which in some cases are 80%, might not apply to new projects, it has been claimed.

There is growing optimism in the industry that new fields, some of which would have marginal profits under new tax rules, could be exempt, suggested The Times.

The tax level on these sites has been controversial, with British Gas parent company Centrica claiming that its field at South Morecambe may not continue operating as regularly because of the high tax rate.

But the Treasury would not confirm the rumours. A spokesperson told ELN: "The Government is continuing its dialogue with the industry on supporting investment in marginal cases."