A TAX BREAK announced by the Treasury will see significant savings for Centrica and GDF Suez as they develop a major North Sea gas field.
The two companies will invest approximately £1.4bn in the Cygnus field, 100 miles from the North Norfolk coast, promising 80% of that money will be spent in the UK, reports The Telegraph.
The tax relief will be applicable to shallow water gas field production, including the Cygnus field, exempting the first £500m of income from a 32% tax, representing a £160m saving.
Centrica, which owns British Gas, said the tax break will “enhance the economics of the Cygnus project”, enabling it to proceed with the development, and would help to secure gas supplies for its customers.
It is thought the development will create some 4,000 jobs, while the tax breaks will cost £20m, said the Treasury.
Report argues that the government must change the way it makes tax and budget decisions
Committee expresses concern about costs to businesses and April 2018 implementation date
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit
Top 25 firm HW Fisher & Co has acquired London firm Rhodes & Rhodes