Guidance

Oil and gas: tax - Investment Allowance

Oil Tax: Investment Allowance

• From: Oil and Gas Authority
• Published: 9 October 2015
• Last updated: 4 July 2016 — See all updates

This guidance was withdrawn on 6 October 2016

The Oil & Gas Authority launched a new website on 3 October 2016 to reflect its new status as a government company.

This formalises the transfer of the Secretary of State’s regulatory powers in respect of oil and gas to the OGA, and grants it new powers. This website will no longer be updated. Visitors should refer to www.ogauthority.co.uk

Investment Expenditure

As announced at the Summer Budget (8 July 2015), the Government intends to broaden the definition of expenditure to be treated as Investment Expenditure for the purposes of the Investment Allowance and the Cluster Area Allowance.

HM Treasury issued a note to industry setting out the proposed changes, effective from 8 October 2015, to treat as Investment Expenditure certain discretionary non-capital spend and spend on long term leasing of production units and HM Revenue & Customs have published draft Regulations and a Tax Information and Impact Note.

Date of material completion of a project described in a Field Development Plan or Field Development Plan addendum

For the purposes of the investment allowance introduced by Finance Act 2015, the Secretary of State may determine a day on which a project was materially completed. The OGA publishes here lists of projects which it understands to be materially complete. The projects are listed separately for new fields which qualified for a field allowance and for incremental projects which qualified for a “brownfield allowance” (ie an allowance as an additionally-developed oil field). For all projects materially complete by 1 April 2015, that date will be determined as 1 April 2015.

The operator of, or any licensee with an interest in, any field with a project that they think is materially complete but not so shown on these lists, should advise Mike Earp (details as below) as soon as possible, providing a rationale for that view. The lists will be kept under review and updated from time to time.

Further Information

This page is maintained by the Oil and Gas Authority (OGA). The OGA contact for further information is:

Mike Earp
4th Floor, 21 Bloomsbury Street
London
WC1B 3HF

Email: mike.earp@oga.gsi.gov.uk

Tel: 0300 067 1604 / 07785 692644

Published 9 October 2015

Last updated 4 July 2016 + show all updates

1. 4 July 2016

   General Updates

2. 9 October 2015

   First published.