ANNOUNCEMENT 18 Mar 2015In March 2015, the British government announced a targeted tax change.
NUMBER OF INTERVENTIONS
UK budget for 2015:
31 August 2015 announcement:
On 18 March 2015, the British Chancellor George Osbourne presented the annual budget to the parliament.
In the budget, the rate of film tax relief was increased to 25%. Previously, a rate of 25% was given only on the first 20 million GBP of qualifying film expenditures, with a reduced rate of 20% on higher amounts.
Additionally, the high-end television relief was extended, as the minimum UK expenditure requirement was lowered from 25% to 10%. New tax reliefs shall be also introduced for children television, as well as a 25% orchestra tax relief.
Furthermore, the budget contained a number of reduced taxes in the oil and gas industry. It included a lowered supplementary charge (from 30 to 20%), a decreased petroleum revenue tax (from 50 to 35%) as well as "a new investment allowance to stimulate investment at all stages of the industry life cycle" (par. 1.129 of the budget) amongst others. These measures will cost the government about 4 billion GBP over the next five years.
On 31 August 2015, the Chancellor announced more news concerning the allowance, as 3 billion GBP are going to be invested into the newly discovered Culzean gas field operated by Maersk Oil in the North Sea.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.