Appendix 1. Fiscal Regime

Introduction

The offshore oil and gas industry is the highest taxed industry in the UK. Fields developed since March 1993 are taxed at 50%, liable for both Corporation Tax at 30% plus a Supplementary Charge at 20%. The marginal tax rate rising to 75% on fields developed prior to 1993, which are also liable for Petroleum Revenue Tax (PRT) at 50%.

Figure 53: Marginal Government Take from Fields Ranges from 50% to 75%