Oil and gas chiefs to hold tax talks with Treasury

Leading figures from the North Sea oil and gas industry are to meet the Financial Secretary to the Treasury today to talk about future tax treatment for the sector. Chancellor […]

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By Priyanka Shrestha

Leading figures from the North Sea oil and gas industry are to meet the Financial Secretary to the Treasury today to talk about future tax treatment for the sector.

Chancellor George Osborne pledged to review the tax regime during his Budget speech earlier this year “to make sure it is fit for the purpose of extracting every drop of oil we can”.

Nicky Morgan will meet business leaders in Aberdeen for the first time since the announcement in March.

The forum will outline the scope and objectives of the review of the fiscal regime, which will look at the longer term tax treatment of the industry. That will include field allowances and how best to use the tax regime to incentivise investment.

Heads of industry are invited to set out their priorities for how the remaining resources can best be exploited, with the review expected to report its initial findings during the Autumn Statement.

Speaking ahead of the meeting, Mr Morgan said: “The government is committed to supporting investment in the oil and gas industry, a vital sector that provides jobs and growth across the United Kingdom.

“Today’s fiscal forum will be a positive start to the review of the fiscal regime for oil and gas, and I look forward to working with the sector on the long term future for the industry.”