HC Deb 16 January 2003 vol 397 c749W
Norman Baker

To ask the Chancellor of the Exchequer how much has been received in oil revenues from extraction of oil from the UK section of the North Sea in each year from 1974 in(a) gross and (b) net

£ million
Corporation tax (CT) Of which:
Financial year Licence fees1 Royalty SPD2 PRT3 Total before ACT set-off4 ACT set-off5 Mainstream CT6 Total revenues
1974–75 4 15 — — 5 — 5 24
1975–76 2 20 — — 5 — 5 27
1976–77 5 71 — — 10 — 10 86
1977–78 7 228 — — 10 — 10 245
1978–79 9 289 — 183 93 40 53 574
1979–80 10 628 — 1,435 250 78 172 2,323
1980–81 220 992 — 2,410 341 97 244 3,963
1981–82 14 1,396 2,025 2,390 681 270 411 6,506
1982–83 46 1,632 2,395 3,274 521 202 319 7,868
1983–84 19 1,904 — 6,017 877 430 447 8,817
1984–85 136 2,426 — 7,177 2,432 1,244 1,188 12,171
1985–86 23 2,057 — 6,375 2,916 1,085 1,831 11,371
1986–87 21 919 — 1,188 2,676 1,130 1,546 4,804
1987–88 27 1,024 — 2,296 1,298 681 617 4,645
1988–89 25 602 — 1,371 1,195 685 510 3,193
1989–90 33 575 — 1,050 743 495 248 2,401
1990–91 31 605 — 860 847 363 484 2,343
1991–92 37 557 — -216 638 370 268 1,016
1992–93 34 554 — 69 682 480 202 1,339
1993–94 43 606 — 359 258 219 39 1,266
1994–95 41 550 — 712 380 299 81 1,683
1995–96 49 555 — 968 766 674 92 2,338
1996–97 48 684 — 1,729 890 460 430 3,351
1997–98 54 535 — 963 1,779 821 958 3,331
1998–99 62 343 — 504 1,605 656 949 2,514
1999–2000 53 389 — 853 1,268 120 1,148 2,563
2000–01 55 552 — 1,517 2,256 — 2,256 4,380
2001–02 59 558 — 1,307 3,347 — 3,347 5,271

Notes:

1. Licence fees include receipts from fees for onshore and offshore petroleum exploration and production licenses, including initial and periodic payments and tender receipts from offshore licensing of £37 million from the 4th round in 1971–72, £33 million the 8th round in 1982–83 and £121 million from the 9th round in 1984–85.

2. Supplementary Petroleum Duty (SPD) was introduced with effect from 1 January 1981 by the 1981 Finance Act and lapsed after 31 December 1982; it was payable at the rate of 20 per cent. on the gross value of oil and gas produced under UK licences less an allowance per field of one million tonnes per year; it did not apply to PRT-exempt sales of gas to the British Gas Corporation.

3. Advance Petroleum Tax (APRT) is included with PRT. The net PRT repayment in 1991–92 and low net receipts in 1992–93 resulted from high tax-relievable expenditure claimed on some fields.

4. The level of Corporation Tax receipts in 1993–94 reflected low liabilities in 1992 (paid in the following financial year) and repayment resulting from lower settlements for earlier years.

5. The ACT (Advance Corporation Tax) Set-off is estimated because the dividends attributable to UK oil and gas cannot be separately identified from other dividends.

6. Mainstream Corporation Tax (CT) equals CT before the ACT Set-off less the estimated ACT Set-of.

There have been no significant grants or other payments to the oil industry and hence the net revenues are the same as the gross revenues.