U.K. to Guarantee Tax Breaks for Dismantling Oil Platforms
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The U.K. government pledged to end the unpredictability of taxes related to the dismantling of North Sea oil platforms to encourage investment in Britain’s energy industry.
Chancellor of the Exchequer George Osborne said he would guarantee tax relief for the dismantling of installations, making it easier to sell off assets to buyers who will spend more on them. U.K. law holds sellers responsible for decommissioning if the buyer can’t pay, leading sellers to demand letters of credit for the potential costs and adding to the expense of deals.