UK Halves Tax Rates on Early Shale Profits

The United Kingdom unveiled its measure to encourage investment in the shale industry, reducing the tax payable on a proportion of profits from 62% to 30%.

“A new tax allowance to encourage investment in shale gas that halves tax rates on early profits,” Chancellor George Osborne said in the Autumn Statement.

The measure was already discussed earlier this year, in order to foster shale gas exploration and production. The Government sees economic benefits beyond oil and gas sectors.

“The country that was the first to extract oil and gas from deep under the sea should not turn its back on new sources of energy like shale gas because it’s all too difficult,” stated Osborne.