TaxCorporate TaxEnergy tax could prevent re-opening of gas field

Energy tax could prevent re-opening of gas field

Centrica, owner of British Gas, warned it might close a gas field as tax measures make it unprofitable

THE OWNERS OF British Gas have indicated that they may keep part of Britain’s largest gas field closed in response to the windfall tax on North Sea oil and gas producers’ profits, as announced in the Budget.

Centrica announced that two gas fields in Morecambe, northern England, would be closed for a month’s planned maintenance; it added that its older South Morecambe field could stay shut because higher taxes have rendered it uncommercial.

Chancellor George Osborne raised the effective rate of tax on production profits to at least 62% and up to 81% for some older fields.

A spokesman for Centrica said: “UK oil and gas producing fields are now subject to some of the highest levels of tax in the world; our South Morecambe field is now taxed at 81%. Accordingly, we may choose to buy gas for our customers in the wholesale markets in preference to restarting the field after planned maintenance.”

Related Articles

Spring Budget 2017: ‘Not a nice Budget for SMEs’

Corporate Tax Spring Budget 2017: ‘Not a nice Budget for SMEs’

9m Emma Smith, Managing Editor
Top five takeaways from Spring Budget 2017

Corporate Tax Top five takeaways from Spring Budget 2017

9m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

9m Shereen Ali, Deputy Editor
Live blog: Spring Budget 2017

Corporate Tax Live blog: Spring Budget 2017

9m Accountancy Age editorial
Top five talking points for Spring Budget 2017

Corporate Tax Top five talking points for Spring Budget 2017

9m Emma Smith, Managing Editor
Income tax reduction top priority for businesses in Spring Budget

Corporate Tax Income tax reduction top priority for businesses in Spring Budget

9m Emma Smith, Managing Editor
What can we expect from Spring Budget 2017?

Corporate Tax What can we expect from Spring Budget 2017?

10m Emma Smith, Managing Editor
Budget is a 'springboard' for tax policy reform, says new report

Corporate Tax Budget is a 'springboard' for tax policy reform, says new report

11m Stephanie Wix, Writer