§ Mr. Skeetasked the Chancellor of the Exchequer whether he will seek to mitigate the effect of capital gains tax on farm-ins and thus permit third parties without penalty to acquire an interest in North Sea licences following the drilling of oil or gas wells.
§ Mr. Peter ReesAny liability in respect of a capital gain from such a transaction would fall on the person disposing of the interest, not the person acquiring it. It follows that there is no capital gains penalty on a person who acquires an interest in a North Sea licence.