Mixed News for the Oil and Gas Industry

Thursday, March 27, 2014

By Johnston Carmichael’s head of tax, Susie Walker, and head of oil & gas, Graham Alexander

On the whole, this year’s Budget was good news for the O&G sector, with the UK Government accepting the recommendations of Sir Ian Wood’s report. However, the Bareboat Chartering changes announced in the Autumn Statement will, despite industry objections, take effect from April 2014, with a slight relaxation of the cap.

Key points for consideration:

•    A new body will be created to encourage exploration and reduce decommissioning costs.
•    From 1 April, the scope of substantial shareholding exemption (SSE) is being extended.
    SSE applies when a company has a qualifying shareholding in another company, therefore exempt from corporation tax on gains made when selling that shareholding.
    Companies will now be treated as having a substantial shareholding in a subsidiary for the 12 month period prior to the disposal, where that subsidiary is using assets for oil and gas E&P activity that have been transferred from other group companies, and where the other conditions are met. 
•    Reinvestment relief for pre-trading companies will come into force from 1 April – as announced in the Autumn Statement, gains will be exempt where an asset is disposed of in the course of oil and gas E&P activities, and the proceeds are reinvested in the UK and UKCS.
•    Mineral extraction allowances – relief will be extended to include expenditure on seeking planning permission, so tax relief accelerated for such costs.
•    The government will introduce a new allowance for ultra high pressure, high temperature clusters and consult on the detail. This is designed to encourage exploration in the central North Sea and provide a significant portion of UK gas demand.
•    The Annual Investment Allowance (AIA) of £250k, due to expire at the end of 2014, will be extended and doubled through to end of 2015. This provides a 100% tax deduction for the cost of most plant and machinery (not cars).
•    SMEs incurring losses when undertaking certain R&D activity can claim relief through tax credits by way of a cash sum paid by HMRC.  This was increased in the Budget and from 1 April 2014, the rate of R&D payable tax credit will be increased from 11% to 14.5%.
•    Bareboat chartering – to address concern that profits are being shifted outside the UK tax net through charter agreements, a cap is to be introduced on the level of deduction for those charters to companies that provide drilling services or accommodation services on the UK Continental Shelf. 

 

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

Fourth Rig Delivered to Perforadora Central

Keppel AmFELS LLC, a wholly owned US subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered the jackup rig, Coatzacoalcos, to Mexico’s Central Panuco S.

Massive LNG Absorber Shipped to Malaysia

Successful transport of 1,480t absorber for biggest LNG plant worldwide in Malaysia.   1,480 tons and a high center of gravity made the transport of an absorber

EU: Ships Will Measure CO2 Emissions

Shippers to begin monitoring from 2018; Environmental groups say law is weak, shippers favorable. The shipping sector will for the first time have to monitor

News

ClassNK Approves Niigata Dual-fuel Engine Design

Classification society ClassNK has granted approval to the design of the new 28AHX-DF dual-fuel engine developed by Niigata Power Systems Co., Ltd. The new engine

MacGregor Deck Equipment for Intership's Eco-bulkers

MacGregor, part of Cargotec, has secured a deck equipment contract from New Times Shipyard in China for Intership Navigation Co Ltd.'s three new 36,500 dwt laker-class bulk carriers.

W&O, LESER Partner to Deliver Safety Relief Valves

W&O, a global supplier to the marine and upstream oil and gas markets for pipe, valves and fittings, valve automation and engineered solutions, has partnered with

Government Update

WRRDA: Clearing the Channel for P3 Projects

A Creative Combination for Financing Inland Waterways Infrastructure Earlier this year, the U.S. maritime industry in general, and the inland waterways industry in particular,

EU: Ships Will Measure CO2 Emissions

Shippers to begin monitoring from 2018; Environmental groups say law is weak, shippers favorable. The shipping sector will for the first time have to monitor

Melbourne Box Pot Lining Up Bidders

Three of Australia's largest infrastructure funds plan to bid for the country's largest container terminal in a sale expected to fetch about A$5 billion ($4.27 billion) for Victoria state,

Offshore Energy

Fourth Rig Delivered to Perforadora Central

Keppel AmFELS LLC, a wholly owned US subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered the jackup rig, Coatzacoalcos, to Mexico’s Central Panuco S.

Woodside to Pick up Moroccan Acreage

Woodside advises that it has entered into a contract for an exclusive Reconnaissance Licence (RL) with the Office National des Hydrocarbures et des Mines, the

UniMarine Opens Office in Pireaus

UniMarine announced the opening of its new office UniMarine South Europe & Mediterranean. Located in Piraeus (Greece), the office will be servicing the Southern

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Salvage Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1634 sec (6 req/sec)