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United Kingdom Upstream Fiscal and Regulatory Report - Autumn Budget 2017 Introduces Transferable Tax History for Late-life Assets

  • ID: 4447217
  • Report
  • December 2017
  • Region: United Kingdom
  • 29 pages
  • GlobalData
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United Kingdom Upstream Fiscal and Regulatory Report - Autumn Budget 2017 Introduces Transferable Tax History for Late-life Assets


"United Kingdom Upstream Fiscal and Regulatory Report - Autumn Budget 2017 Introduces Transferable Tax History for Late-life Assets", presents the essential information relating to the terms which govern investment into United Kingdom’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for United Kingdom’s upstream oil and gas investment climate.

  • Overview of current fiscal terms governing upstream oil and gas operations in United Kingdom
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in United Kingdom
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to United Kingdom’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making
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1 Table of Contents

2. Regime Overview

3. State Take Assessment

4. Key Fiscal Terms
4.1. Upfront Payments
4.1.1. Rentals
4.1.2. Royalties (Abolished January 1, 2003)
4.1.3. Royalties - Onshore Northern Ireland
4.2. Petroleum Revenue Tax
4.2.1. Application of Petroleum Revenue Tax
4.2.2. Supplement
4.2.3. Oil Allowance
4.2.4. Tariff Receipts Allowance
4.2.5. Cross-Field Allowance
4.2.6. Safeguard
4.2.7. Provisional Expenditure Allowance (Abolished from July 1, 2009)
4.3. Corporation Tax
4.3.1. Ring Fence Corporation Tax
4.3.2. General Corporation Tax
4.3.3. Deductions and Depreciation
4.3.4. Mineral Extraction Allowance
4.3.5. Ring Fence Expenditure Supplement
4.4. Supplementary Charge
4.4.1. Application of Supplementary Charge
4.4.2. Investment Allowance
4.4.3. Cluster Allowance
4.4.4. Onshore Allowance
4.4.5. Previous Field Allowances
4.5. EU Emissions Trading Scheme
4.6. Customs Duties
4.7. Value Added Tax

5. Regulation and Licensing
5.1. Legal Framework
5.1.1. Governing Law
5.1.2. Contract Type
5.1.3. Title to Hydrocarbons
5.2. Institutional Framework
5.2.1. Licensing Authority
5.2.2. Regulatory Agency
5.3. Licensing Process
5.3.1. Licensing Rounds
5.3.2. Out-of-Round Applications
5.3.3. Applicant Requirements
5.3.4. Work Program Proposals
5.3.5. Application Fee
5.3.6. Application Assessment
5.4. License Terms
5.4.1. Duration
5.4.2. Relinquishments
5.5. Restrictions on Hydraulic Fracturing

6. Outlook

7. Appendix
7.1. Contact
7.2. Disclaimer

List of Tables
Table 1: Regime Overview
Table 2: United Kingdom, “Innovate” Seaward License Rentals (£/km2), 2017 and 2016
Table 3: United Kingdom, License Rentals (£/km2), Pre-2016 Licenses
Table 4: United Kingdom, Ring Fence Corporation Tax Rates (%), 1975-2017
Table 5: United Kingdom, Corporation Tax (Main Rate), 2000-2016
Table 6: United Kingdom, Supplementary Charge, 2002-2016
Table 7: United Kingdom, Current Licenses, License Duration (years)
Table 8: United Kingdom, Previous Licenses, License Duration (years)
Table 9: United Kingdom, Relinquishment Requirements, Pre-2016 Licenses

List of Figures
Figure 1: Regime Flow Chart - UK (excluding onshore Northern Ireland)
Figure 2: Regime Flow Chart - Onshore Northern Ireland
Figure 3: United Kingdom,Indicative NPV10/boe, IRR, and State Take Comparison - Regional Peers, 2017
Figure 4: United Kingdom, Legal Framework
Figure 5: United Kingdom, Institutional Framework
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