Tax Cuts for Oil Companies under Consideration
Posted on: 12/01/2015

Following the dramatic decline of the price of oil in the past few months, North Sea oil and gas companies will be offered tax cuts by the Chancellor in order to avoid withdrawal of investment and production.

Industry body Oil & Gas UK has insisted that a tax cut of as much as 30 percent is required in order to straighten up the unfriendly and outdated tax structure to one which is suiting to the needs of today. At current the basic tax levy is 60 percent but that this can increase to 80 percent for established oil fields.

Chancellor George Osborne has said that whilst he cannot pre-empt the March Budget, he implied that there may be “further reductions in the burden of tax on investment in the North Sea”. It is hoped that such tax cuts will not only protect the UK’s ability to provide oil, but also the thousands of jobs the oil industry currently provides.

The importance of a substantial tax cut cannot be underestimated with the current situation, Mike Tholen, the economics director at Oil and Gas UK has reported that “if we don’t get an immediate 10 percent cut, then that will be the death knell for the industry.” He went on to say that a 10 percent cut would be only the beginning and that this should be followed by a further 20 percent reduction later on in order to encourage investment.

Despite the troubles that have been faced by the industry in recent times, we believe that a turnaround is soon on the cards and this tax adjustment could be the catalyst the industry needs.

For the latest news releases please follow us on twitter: @BlueprintOnG.

Vacancies By Email

Get There First With Vacancies By Email

Get specific job types, tailored to your requirements, sent straight to your inbox as soon as they are available. Register Now »

Latest Oil & Gas Jobs

Office Management / Facilities Maintenance Technician Contract | Kingston upon Thames, Surrey, England | £12.50 Per Hour

We are currently seeking a General Services Technician to join an offshore oil and gas company in Kingston-upon-Thames. Due to an increasing workload, they are seeking an Office/Facilities Technician to carry out general maintenance of the office and repa
Read More »

Senior Functionality Safety Consultant Permanent | Manchester, Greater Manchester, England | Negotiable

We have a new opportunity for a Senior Functionality Safety Consultant to join our client on a permanent basis in Manchester.
Read More »

Legal Assistant / Contracts Analyst Permanent | London, England | £34,000 Per Annum

We have a new opportunity for a Legal Assistant to join an established Engineering design firm in London on a permanent basis.
Read More »

Contract Advisor Permanent | London, England | Negotiable

We are currently seeking Contract Advisors of various levels to join a global engineering, offshore oil and gas company on a permanent staff basis in London.
Read More »

Mechanical Engineer Permanent | London, England | Negotiable

Blueprint Recruitment Solutions have a new opportunity for a Senior Mechanical Engineer to join a global quality assurance and risk management company, on a permanent basis in London.
Read More »