UK government confirms tax breaks for shale gas

The measure that took effect on Thursday will “make the UK tax regime for shale gas the most competitive in Europe”, says the finance ministry

The British finance ministry has confirmed tax breaks on indigenous onshore oil and gas exploitation, including shale gas, to put “downward pressure” on wholesale prices and increase the UK’s security of energy supply.

The measure, announced in July, took effect on Thursday. It cuts tax payable on a portion of a company’s profits from 62% to 30%. Firms will receive an allowance equal to 75% of capital spent on shale gas projects.

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