Oil activities: transferable tax history

Finance (No. 3) Bill – in a Public Bill Committee at 2:00 pm on 4th December 2018.

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Amendment proposed: 84, in schedule 14, page 260, line 15, leave out sub-paragraph (d).—(Clive Lewis.)

The provision as drafted allows companies to transfer TTH worth double the value of anticipated decommissioning costs. This reduces the incentive for companies towards efficiencies in decommissioning costs and paves the way for decommissioning-related tax repayments far bigger than the companies are currently acknowledging. This amendment removes that provision.

Question put, That the amendment be made.

The Committee divided:

Ayes 7, Noes 10.

Division number 21 Finance (No. 3) Bill — Oil activities: transferable tax history

Aye: 7 MPs

No: 10 MPs

Ayes: A-Z by last name

Nos: A-Z by last name

Question accordingly negatived.

Amendment proposed: 81, in schedule 14, page 261, line 29, at end insert—

“(aa) assessing the impact on employment, skills and the Exchequer from the asset’s production life and planned decommissioning phase, and”.—

Question put, That the amendment be made.

The Committee divided:

Ayes 7, Noes 10.

Division number 22 Finance (No. 3) Bill — Oil activities: transferable tax history

Aye: 7 MPs

No: 10 MPs

Ayes: A-Z by last name

Nos: A-Z by last name

Question accordingly negatived.

Amendment proposed: 89, in schedule 14, page 261, line 42, at end insert—

“(d) includes an assessment of the impact on the Exchequer from the amount spent on directly employed and contracted staff by the seller over the production life of the asset to date; and the impact on the Exchequer from the buyer’s plans for employed and contracted staff up to and including the decommissioning stage.”—

This amendment requires a decommissioning security agreement to include an assessment of the impact on the Exchequer from the amount spent on staff, in order for that agreement to be qualifying for the purposes of this Schedule.

Question put, That the amendment be made.

The Committee divided:

Ayes 7, Noes 10.

Division number 23 Finance (No. 3) Bill — Oil activities: transferable tax history

Aye: 7 MPs

No: 10 MPs

Ayes: A-Z by last name

Nos: A-Z by last name

Question accordingly negatived.

Schedule 14 agreed to.

Clause 37 ordered to stand part of the Bill.

Clause 43