The anti-loss buying rules, where applied, deny companies under new ownership the benefit of carried forward unused tax losses in place at the date of change of ownership. They apply where there has been a major change in the nature or conduct of the (company’s) trade, or where, prior to the change in ownership, the scale of the activities in the trade has become small or negligible without any significant revival. Companies undertaking oil and gas exploration, appraisal and development […]

The December year-end returns are due to be filed soon and so we thought it would be helpful to send a reminder of some of the new challenges that face companies when preparing and filing their corporation tax returns.  The complexities of tax compliance have multiplied in recent years and CW Energy remains committed to ensuring that compliance is achieved efficiently and timeously and that we optimise the tax attributes of each client. The purpose of this briefing is to […]

The publication of the Conservative Party Manifesto document over the weekend included a proposal for an oil and gas sector deal. In the section of the document relating to Scotland, the following was announced: “Oil and gas sector deal: The oil and gas industry employs almost 300,000 people, of whom four in 10 work in Scotland. We believe that the North Sea oil and gas industry has a long future ahead and know the sector has a key role to […]

The publication of the Labour Party Manifesto document included a proposal for a windfall tax for oil companies.   The Manifesto itself included the following: “We will introduce a windfall tax on oil companies so that the companies that knowingly damaged our climate will help cover the costs. We will provide a strategy to safeguard the people, jobs and skills that depend on the offshore oil and gas industry.” No details of the measure were included in the manifesto. However, Labour […]

IAS 12 and the initial recognition of decommissioning assets and liabilities  An exposure draft was published in the summer proposing an amendment to the application of the Initial recognition exemption (IRE) to transactions where a deferred tax asset and liability of the same amount are established on initial recognition.  In the past we have seen a wide variation in the accounting in this area but if the proposals are implemented companies may well have to revisit this area.  Representations are […]

We are very pleased to announce that Stephen Kitching, an indirect tax specialist with many years’ experience in the energy sector, has joined our team as a new tax partner. Steve will be based in our new Aberdeen office at 1 Marischal Square, Broad Street Aberdeen AB10 1BL, but will also be spending time in London. This is an exciting development for CW Energy which will enable us to offer a broader range of services in the indirect tax sphere. […]

For a valid TTH election to be made, the seller of the interest cannot be the holder of a Decommissioning Relief Deed with the original wording, since such Deed would expose the Exchequer to a potential double claim to relief. In our March 27 news item, we advised Decommissioning Relief Deed holders of the Treasury’s plan to contact Deed holders to assist in implementing the changes to the Deed which are required for a valid TTH election. However, we understand […]

Our Tax Newsletter of 21 March encouraged potential sellers of interests to ensure their Deeds were amended if they were contemplating taking advantage of the transferable tax history (TTH)  rules. We now understand that the Treasury will contact all Deed holders to implement the changes to the Deed to make them compatible with the TTH rules. We understand this will happen within weeks and will involve the Treasury sending the revised wording to the Deed holder. Furthermore, we understand that […]

The transferable tax history rules are now law. However, any seller of a licence interest who has a Decommissioning Relief Deed in place cannot make an election to transfer tax history unless the Deed contains a provision to ensure the seller cannot make a Deed claim that effectively relies upon tax history that has been transferred. Specifically, the Deed must provide that the total transferred amount of tax history is removed from the calculation of the “reference amount”; which is […]

Supreme Court refuse taxpayer permission to appeal in the Leekes loss streaming case.  It looks like the end of the line for the loss streaming appeal by Leekes as the Supreme Court refused the taxpayer permission to appeal because the application did not raise an arguable point of law. The taxpayer had argued that where there had been a succession in the case of the transfer of the whole of the trade, the streaming rules set out in s343(8) did […]