Shale gas — tax breaks and planning guidance certainty
On 19 July 2013, HM Treasury published a consultation on a new fiscal regime for shale gas. On the same day, and to much less fanfare, the Department of Communities and Local Government issued guidance on how shale gas (and other onshore oil and gas) developments should proceed through England’s planning system. With the former set to provide substantial financial incentives and the latter providing clarity on a problematic area, it is clear that the government is looking to push the shale gas industry on to the next level.
Aware of the potential benefits an established shale gas industry can bring to a country that is set to be burdened by the requirement of high-net-gas imports (expected to be 76 per cent of demand by 2030), the government has designed a tax regime that it describes as ‘generous’, in an effort to support the industry at a stage when costs are likely to be high and risks great.
Currently, the shale gas industry is subject to the ‘ring fence’ tax regime for oil and gas. Profits are subject to an initial ring fence corporation tax (RFCT) of 30 per cent and a supplementary charge (SC) of 32 per cent. However, support is provided through ‘field allowances’ (which effectively removes the SC) for those projects that are economic but commercially marginal…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
The boom, bust and claim cycle could soon be repeated, sparking a rise in surveyors’ negligence cases. What lessons can be learned?
Court will not tolerate opportunistic attempts to capitalise on another’s trivial breach.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.