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Oil Taxation

Volume 12: debated on Wednesday 11 November 1981

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asked the Chancellor of the Exchequer what percentage of the oil companies' profit the Government take in taxes.

[pursuant to his reply, 9 November 1981, c. 12]: The taxes on UKCS oil production will dominate United Kingdom tax paid by oil companies. Since profits are calculated in different ways for each tax, the profits returned by companies for each tax will vary according to the tax for which the return is made and will in any case differ from the measure of profits shown in the accounts. Thus it would not be meaningful to express Government revenues as a percentage of profit.About 45 per cent. of gross revenues from North Sea oil and gas production will be taken in royalties and taxes in 1981–82. This figure will tend to rise as companies work through tax allowances.