30 Oct 2018

2018 Autumn Budget

The Chancellor delivered his 2018 Autumn Budget today. In the Chancellor’s speech there was a welcome confirmation that North Sea tax rates would remain unchanged, together with an announcement that the Government would launch a call for evidence on creating a global centre of excellence for decommissioning in Scotland. Within the detailed announcements there was nothing further directly applicable to the upstream oil & gas sector, other than the Finance Bill contains the previously announced “late life” asset proposals on […]


16 Jul 2018

Finance Bill and Decommissioning

Decommissioning developments; more options. Draft clauses for the next Finance Bill were published recently which included  a number of measures directed at the oil industry,  intended to assist sales of “late life” assets.  In particular the Finance Bill includes legislation to give effect to the long awaited transferable tax history (TTH) scheme, and proposals to deal with the PRT treatment of “retained” decommissioning obligations following a licence sale. These changes are to be effective for field transfers obtaining OGA consent […]


13 Jun 2018

Loss Streaming Latest

HMRC – 2    Taxpayers – 1 The taxpayer has been unsuccessful in their appeal against the Upper Tier Tribunal decision in the Leekes loss streaming case. This case was discussed by CW Energy in our Newsbrief of 16 March 2015 and also on 22 July 2016. The Court of Appeal have closely followed the reasoning in the UTT holding that the effect of section 343(3) ICTA 1988 is that the successor to the trade previously carried on by another company […]


30 Nov 2017

North Sea Decommissioning relief acceleration scheme fails

Marathon have lost their appeal in the First Tier Tribunal for their claim for relief for expenditure incurred under an “acceleration” scheme which they entered into in 2008 under the special decommissioning relief provisions in s163/s164 CAA 2010 as they applied at that time. Marathon Oil U.K., LLC (“MOUK”), was the licence holder for a number of the group’s North Sea assets. They entered into an arrangement to secure relief in advance of decommissioning work actually being carried out in […]


22 Nov 2017

2017 Autumn Budget

Philip Hammond presented his Budget today. This note sets out the main announcements that are targeted at oil and gas companies operating in the UK and UKCS. TTH for late life assets The main item directly affecting the oil and gas industry was the announcement regarding the proposed introduction of transferable tax history (TTH). The intent of the proposals is to facilitate the transfer of mature field interests to companies which would otherwise be unable to obtain effective relief for […]


01 Nov 2017

CW Energy joins Gordon Dadds Group plc

CW Energy is pleased to announce that it has become part of legal and professional services group Gordon Dadds Group plc, a fast growing legal and professional services business headquartered in London with a significant back office and technology platform based in Cardiff. Joining the Group will give our clients access to a wider range of legal and professional services as well as enhancing the long term sustainability of the firm. Commenting on the acquisition Adrian Biles, Chief Executive Officer of […]


21 Sep 2017

Summary of IFRIC 23 – Accounting for Tax

Issue Although IAS 12 requires one to take into account uncertainties when accounting for tax there is no specific guidance of the approach to be taken. IFRIC 23 is being introduced to clarify the accounting approach that is required to be taken. IFRIC 23 interpretation in assessing uncertainty The IFRIC deals with 4 areas relevant for recognition and measurement 1. Whether tax treatments should be considered singly or collectively In deciding whether a tax treatment should be considered independently or […]


12 Sep 2017

Newsbrief – Criminal Finances Act 2017

We want to draw your attention to the implementation of the rules in the Criminal Finances Act 2017 creating an offence of corporate failure to prevent the facilitation of tax evasion. The rules were set out in the Act, but were only to take effect once secondary legislation was passed. This has now been done. The Criminal Finances Act 2017 (Commencement No 1) Regulations, SI 2017/739, implements the rules from 30 September 2017. The rules introduce a new offence. The […]


19 Jul 2017

Finance Bill (no 2) 2017

Corporation Tax loss reforms Impact on ring fence losses   Readers will be aware that the Government is proposing some quite significant changes to the rules dealing with the use of carried forward losses. Draft clauses were included in the Finance Bill published earlier this year. These provisions were however pulled from the truncated Bill which has passed into law, but revised legislation to be included in the Finance Bill to be published after the summer recess, has recently been […]


28 Apr 2017

Finance Bill 2017

The Finance Bill as originally introduced has been dramatically reduced in scope in order to pass into law prior to the general election. For companies the key points are the omission of; the new loss relief rules (for brought forward losses), the interest deduction restrictions, and the amendments to the Substantial Shareholding Exemption rules. In addition, the legislation dealing with the relaxation of the PRT opt-out rules is to be omitted. The Government minister stated in the relevant Finance Bill […]