Parasol welcomes shale gas tax break
George Osborne unveiled the policy, which was first floated during the summer, in today’s Autumn Statement.
Announcing that energy companies exploring for shale gas would only have to pay half the normal rate of tax on early profits, the chancellor said the UK should not “turn its back” on new forms of energy that could help secure the UK's energy supply.
The full Autumn Statement policy document explains, “The new tax allowance builds on the success of offshore field allowances in increasing investment in technically and commercially challenging fields. Like existing field allowances, it reduces the tax rate on a portion of a company’s profits from 62% to 30% to reflect the challenging nature of these developments. Companies will receive an allowance equal to 75% of their capital spend on these projects.”
Cheshire-based Parasol – which provides outsourced employment solutions to thousands of recruitment firms and career contractors, including many in engineering and oil & gas – welcomed the measure.
Managing director Derek Kelly said, “This bold move will stimulate investment in a fledgling industry that has the potential to create thousands of jobs and increase Britain’s energy security.
“This will be good news for the entire onshore gas recruitment supply chain, from agencies themselves through to the contractors and freelancers who have the expertise to help plug the UK’s engineering skills gap.
“As the Autumn Statement document rightly declares, a thriving shale gas industry would also have benefits for a range of related manufacturing sectors.
“The tax break will therefore help to address two of the biggest challenges facing the UK – boosting manufacturing and increasing energy security.”