HC Deb 01 July 1981 vol 7 c385W
Mr. Foulkes

asked the Chancellor of the Exchequer (1) if he will give figures for the United Kingdom's tax take to date in the North Sea for the United Kingdom continental shelf oil and gas production as a percentage of (a) gross turnover of oil and gas and (b) profits recorded by the operating company;

(2) if he will provide, in respect of oil and gas takes for the United Kingdom continental shelf, estimates for (a) the tax take in 1981–82 as a percentage of gross turnover, (b) the tax take for the period 1982 to 1985 as a percentage of gross turnover, (c) the tax take for the period 1981–82 as a percentage of estimated profits and (d) the tax take for the period 1982 to 1985 as a percentage of estimated profits.

Mr. Peter Rees

[pursuant to his reply, 23 June 1981, c. 61]: It is estimated that the tax take, including royalties, from North Sea oil and gas production was about 35 per cent. of gross turnover in the period 1970–71 to 1980–81 inclusive and will be about 45 per cent. of gross turnover in each of the years 1981–82, 1982–83 and 1983–84. It would not be possible to express the take from royalties, PRT and CT as a percentage of the companies' North Sea profits. The profit recorded by the operating companies in their accounts may include profits from activities other than North Sea oil production and the cost of development fields not yet in production may be set off against the profits from producing fields. Since profits are calculated in different ways for each tax, the profits returned by the companies for each tax will vary according to the tax for which the return is made and will in any case differ from the measure of profits shown in the accounts.

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