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This document follows a 12 week review of the tax regime applicable to oil and gas activities on the UK Continental Shelf (UKCS). It summarises the background to the review, work completed, an assessment of the opportunities in the UKCS, an assessment of the case for change in the fiscal regime and the government鈥檚 plans for reform.

Underpinning these reforms and future oil and gas fiscal policy are the following principles:

• to be consistent with the objective of maximising economic recovery as new projects become ever more marginal, the overall tax burden will need to fall as the basin matures
• when making judgements about fiscal policy, the government will consider the wider economic benefits of oil and gas production, in addition to revenues
• the government鈥檚 judgement of what constitutes a 鈥榝air return鈥� will take account of the global competitiveness of commercial opportunities in the UK and UKCS, and take account of both commodity prices and costs

皇冠体育app government is confident that the changes it is making recognise the continuing importance of a successful oil and gas sector to the UK economy and send a clear signal that it is part of a UK that is open for business.