Chancellor George Osborne today announced a new tax measure to support investment in the North Sea.
The ‘Brown Field Allowance’ in older oil and gas fields is expected to save up to £500 million for some projects, potentially cutting companies’ tax bill by £160 million.
The Chancellor said he hopes the savings generated by the tax break will encourage firms to invest more in older oil fields in the North Sea.
Mr Osborne said: “Today’s tax allowance is more good news for the North Sea, good news for jobs and good news for the broader economy. It will give companies the incentive to get the most out of older fields, creating jobs and delivering more revenue for taxpayers.”
In July, the Chancellor pledged millions of pounds of tax breaks to encourage more drilling for gas off the coast of the UK.