By GRAHAM ALEXANDER
The UK Government is increasingly recognising the importance of the Oil & Gas sector and accordingly, has introduced a number of tax breaks, particularly pertaining to research, development and innovation.
As part of Budget 2014, the Chancellor announced that R&D tax credits would increase from 11% to 14.5% for SMEs. The Patent box was also introduced 12 months ago, allowing the proﬁ ts from qualifying patents to be taxed at a reduced rate of corporation tax.
These measures support R&D and most importantly, growth. There are major opportunities to be taken advantage of here and to date.
Additionally, the Annual Investment Allowance (AIA) has also been increased from £250,000 to £500,000, and extended to 31 December 2015. This is positive news for the industry.
Never has there been such a time to embark upon international growth, as the government looks to improve the UK’s export levels and exports from the Scottish Oil & Gas supply chain are expected to grow by 32% in the next ﬁve years,
Graham Alexander is Head of Oil & Gas at Johnston Carmichael.