Tax Systems for North Sea Oil in Britain and Norway
The impact of the British offshore oil taxation system on company rates of return is examined implicitly at various places in this book.1 In Chapters 4 and 6 rates of return are estimated on several price assumptions and in Chapter 7 the effect on profitability of depletion controls is discussed: since all the net present value and internal rate of return computations are after tax (that is, after royalties, Corporation Tax and Petroleum Revenue Tax) the taxation system figures in all these calculations. In this chapter, however, the impact of the United Kingdom taxation regime on company profitability and government revenues is investigated more explicitly and compared with the corresponding regime in Norway.2 An introduction to the taxation system for United Kingdom offshore oil appears in Chapter 4 and in Chapter 9 there are some comments on the overall size of British government revenues from oil.
KeywordsPetroleum Income Oilfield Concession Wellhead
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