CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. UK Could Share Shale Gas Tax Revenues With Residents

UK Could Share Shale Gas Tax Revenues With Residents

by Robert Lee, Tax-News.com, London

10 August 2016


The UK Government is consulting on proposals to use up to 10 percent of the tax revenues arising from shale gas production for the benefit of residents in areas affected by the extraction process.

The Government has announced plans for a Shale Wealth Fund (SWF), which it said could be worth up to GBP1bn (USD1.3bn) in total. The Fund will initially consist of up to 10 percent of the tax revenues arising from shale gas production. According to the consultation, the Fund "will ensure that the development of the shale industry leaves a positive legacy in the local communities and regions where it is based and that residents can share the benefits of shale development and get a say on how the money is spent."

The consultation proposes to "initially set the maximum pay-out at GBP10m to each community or region associated with an individual shale site over the lifetime of the site, which is likely to be around 25 years." It may revisit this limit in future.

The consultation considers the methods by which the Government could deliver the SWF. Options include direct payments to affected households, and the use of revenues for local projects that boost skills and growth, or for road and rail infrastructure.

The Energy Minister, Baroness Neville-Rolfe, said: "Shale is a promising new industry that could bring financial benefit to individual households, create thousands of new jobs, and provide a secure lower carbon home grown energy source. The combination of the boost to our economy and 50 years of safe regulation of oil and gas in the UK makes going for shale the right course of action."

"It is right that local communities should benefit from this new industry and that they should have a say in how such money can be put to best use."

TAGS: environment | Energy | tax | tax incentives | energy | United Kingdom | oil and gas | ministry of finance | tax authority | regulation

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »