HC Deb 03 December 1976 vol 921 cc289-90W
Mr. Rost

asked the Chancellor of the Exchequer if he is satisfied that the current tax régime as applied to North Sea oilfields provides sufficient incentive for an optimum percentage extraction of resources.

Mr. Joel Barnett

I will let the hon. Member have a reply as soon as possible.

Mr. Rost

asked the Chancellor of the Exchequer if he will introduce changes in the tax system for North Sea oil development to encourage a higher percentage extraction of total reserves.

Mr. Joel Barnett

I will let the hon. Member have a reply as soon as possible.

object, to see if they are caught by existing legislation. However, it could be some years before any doubt about the application of the present law is settled through the judicial process, and in the meantime very substantial amounts of tax could be at risk. If, therefore, as a result of their examination it appears that there could be abuse of the reliefs provided by the Act, to put the matter beyond doubt the Chancellor will introduce appropriate legislation in next year's Finance Bill, effective from today.