Harnessing the potential of the UK’s natural resources: a fiscal regime for shale gas
The government has published a consultation paper on proposals for a tax regime for shale gas.
As announced at Budget 2013, the government has published a consultation paper on proposals for a tax regime for shale gas. The shale gas industry is in its early stages in the UK, but there is great potential for it to increase our energy security, create jobs and generate substantial tax revenue. The proposals in this consultation are designed to unlock early investment and support the development of this new industry.
The consultation paper outlines a proposal for a pad allowance (where a pad refers to the drilling and extraction site) and an approach to the extension of the Ring Fence Expenditure Supplement from six to ten accounting periods. It proposes extending this new tax regime beyond shale gas to all onshore unconventional hydrocarbons.
The government would like to hear from a wide range of stakeholders including individuals, companies, communities and representative and professional bodies. We will be holding a series of working group meetings over the summer with tax and finance experts to discuss technical issues raised in the consultation. If you would like to be a working group member please send a nomination, with your current position and organisation, using the correspondence details below.
The government will publish a summary of responses to this consultation later in the year. Where appropriate, legislation will be brought forward in Finance Bill 2014.