Draft legislation: oil and gas taxation – investment and cluster area allowances

This consultation will be of interest to oil and gas companies operating in the UK and on the UK Continental Shelf (UKCS).

The draft legislation will expand the definition of relevant income for the investment and cluster area allowances to include tariff receipts, meaning that companies will be able to use tariff receipts to activate those allowances.

The legislation will take effect for accounting periods beginning on or after 16 September 2016.

Before submitting your views, we recommend that you read the:

• draft statutory instrument
• explanatory memorandum
• tax information and impact note