Scottish tax body welcomes Chancellor’s Oil & Gas relief
The Chartered Institute of Taxation (CIOT) has welcomed Chancellor George Osborne’s announcement today during the Budget that the Petroleum Revenue Tax (PRT) would be ‘effectively abolished’.
The tax was cut in last year’s budget from 50% to 35% but has continued to adversely affect Scotland’s beleaguered Oil & Gas industry. The tax rate will fall to 0% for chargeable periods ending after 31 December 2015. The industry, which is a major employer in Scotland’s North-East, will also benefit from a reduction in the supplementary charge for oil companies from 20% to 10% and this will be backdated to 1 January 2016.
Chair of the CIOT’s Scottish Technical Committee, Moira Kelly, commented:
“We welcome the Chancellor’s announcement today which will give a welcome sigh of relief to an industry which has struggled to cope with decreasing oil prices. The industry employs hundreds of thousands of individuals in Scotland; the cut in the PRT and supplementary charge signals that the Government has taken a long-term view to protect the industry in recognising that its role is to mitigate as best it can against the natural fluctuation of the oil and gas commodity prices.”
Note to editors
1. The Chartered Institute of Taxation (CIOT)
The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 17,500 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
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