Corporation Tax: oil and gas companies Investment Allowance and reduction in supplementary charge
This Tax Information and Impact Note introduces a new investment allowance to reduce the amount of adjusted ring fence profits subject to the supplementary charge.
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This package of measures will introduce a new Investment Allowance to reduce the amount of adjusted ring fence profits subject to the supplementary charge. The portion of profits reduced by the allowance will be dependent on a company’s investment expenditure and will be generated at 62.5% of that spend from 1 April 2015.
It also reduces the rate of supplementary charge payable in respect of profits from oil and gas production in the UK and UK Continental Shelf from 30% to 20%, with effect from 1 January 2015. The rate of Petroleum Revenue Tax payable in respect of profits from oil and gas production will reduce from 50% to 35% for chargeable periods ending after 31 December 2015.