Oil and gas companies paid millions in ‘negative tax’

Official data published showed that almost a third of energy companies operating in the North Sea was paid millions in ‘negative tax’ by HRMC in the 2019-20 tax year

The data published by the UK government-backed Extractive Industries Transparency Initiative showed that in the tax year 2019-20, some of the big players in the oil and gas industry received pay-outs from HMRC with ExxonMobil receiving £117m, Shell receiving £110m, and BP £39m.

The pay-outs from the tax authority are in large part of the UK tax policy that was introduced after the Paris Climate accord was agreed in 2015.

The policy allows oil and gas companies to claim back public money to help with decommissioning rigs and infrastructure as the UK progresses towards its net-zero carbon emissions targets.

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