Tax-breaks forecast to further boost Scots oil and gas exports

North Sea oil rig



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.

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