British petroleum tax
Ring fenced corporate tax
- Oil companies subject to normal corporate tax with some modifications
- Ring fence applies to and embraces all oil exploration and production activity carried out by the company
- 30% tax rate on Ring Fenced Corporation Tax (RFCT) base
- Unlimited carry forward
- For Capex and Exploration costs incurred after 17 April 2002 a 100 % first year allowance applies
Supplementary charge
- Supplementary charge increased from 20% to 32% in April 2011
- The charge is generally calculated on RFCT profits but finance costs have to be added back as they are not deductible