47881_Budget_2015_Web_Accessible

forward losses to 50% from 1 April 2015. Following a period of consultation, the governmentwill be making a change to the measure’s targeted anti-avoidance rule and introducing a £25million allowance for affected building societies. (Finance Bill 2015) (t)Oil and gas taxes2.139 Ring Fence Expenditure Supplement (RFES) – As announced at Autumn Statement2014, the government will extend the RFES from 6 to 10 accounting periods for all ring fence oiland gas losses and qualifying pre-commencement expenditure incurred on or after 5 December2013. (Finance Bill 2015)2.140 High pressure, high temperature cluster area allowance – As announcedat Autumn Statement 2014, the government will introduce an allowance to support thedevelopment of high pressure, high temperature projects and encourage exploration andappraisal activity in the surrounding area or ‘cluster’. The allowance will exempt a portion ofa company’s profits from the Supplementary Charge. The amount of profit exempt will equal62.5% of the qualifying capital expenditure a company incurs in relation to a cluster from 3December 2014 onwards. (Finance Bill 2015)2.141 UK Continental Shelf Investment Allowance – The government will introduce abasin-wide allowance to support investment on the UK Continental Shelf, replacing the existingoffshore field allowances and simplifying the existing regime. The allowance will exempt aportion of a company’s profits from the Supplementary Charge. The amount of profit exemptwill equal 62.5% of the investment expenditure a company incurs in relation to a field from 1April 2015 onwards. (Finance Bill 2015) (11)2.142 Reduction to Supplementary Charge – Further to the 2 percentage point cut in theSupplementary Charge announced at Autumn Statement 2014, the government will reduce therate of the Supplementary Charge from 30% to 20% with effect from 1 January 2015. (FinanceBill 2015) (11)2.143 Petroleum Revenue Tax (PRT) – The government will reduce the rate of PRT from 50%to 35%, taking effect for chargeable periods ending after 31 December 2015. (Finance Bill 2015)(12)2.144 Wood Review – Budget 2014 tasked the interim Oil and Gas Authority (OGA) to reviewhow best to encourage exploration and reduce decommissioning costs. In response governmentwill:••provide the new OGA with the mandate to scrutinise companies’ decommissioning plans toensure these are cost-effective and timely••as announced at Autumn Statement 2014, provide £20 million support in 2015-16 forseismic and other geoscience surveys, to catalyse exploration and appraisal in underexploredregions of the UKCS (13)Indirect taxes2.145 Alcohol Duty rates – From 23 March 2015, the duty rates on general beer, spirits andlower strength cider will be reduced by 2%. The duty rate on low strength beer will be reducedby 6% and the total duty rate on high strength beer will be reduced by 0.75%. The duty rate onhigh strength still cider will be reduced by 1.3% and the duty rates on wine below 22% abv andhigh strength sparkling cider will be frozen. (Finance Bill 2015) (9,10)2.146 Alcohol fraud – As announced at Autumn Statement 2013, the government willintroduce a registration scheme for alcohol wholesalers that will take effect from October 2015.(Finance Bill 2015) (bk)Budget 201585