The UK oil industry has welcomed Government tax concessions which it claims will help to protect jobs and stimulate investment in the North Sea.
The Government is to reinstate capital gains tax rollover relief to UK oil licencees. The change will slash the tax bill for firms investing in oil exploration and reverses a 1987 Tory decision to exclude the oil sector from the tax relief.
`The measure is a welcome signal of the Government’s intention to address the increasing maturity of the North sea,’ said James May, director general of the UK Offshore Oil Operators’ Association. `This confirms its commitment to secure the future of the industry, which supports 380,000 jobs.’
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