UK Goes No Further in Raising Oil and Gas Taxes After Outcry
- Government keeps 100% first-year capital allowance in EPL
- Headline UK oil, gas tax rate still rising to 78% from Nov
The UK government went no further in toughening up the tax regime for North Sea oil and gas producers than measures already announced, keeping capital allowances in the windfall tax following protests from the industry.
As the governing Labour Party faces intensifying challenges to fill a £22 billion ($28.6 billion) budgetary black hole it says it inherited from the previous Conservative administration, Chancellor of the Exchequer Rachel Reeves has turned to oil and gas as a source of extra revenue.