The government has proposed to cut the tax on some of the income generated from producing shale gas by hydraulic fracturing (commonly known as fracking) from 62% to 30% in a bid to attract companies to begin new operations in the UK. The planned tax breaks will make the UK's the most generous scheme for Shale gas in the World.
The UK is believed to have large resources of shale gas, especially in the North of England where a recent report from the British Geological Survey estimated there may be 1,300 trillion cubic feet of shale gas present, much of it in the Bowland Basin under Lancashire. Drilling companies have previously estimated that they may be able to extract about 10% of this gas, far in excess of the three trillion cubic feet of gas currently consumed in the UK each year.
These proposals will now go before a consultation established by the Treasury, which will be open until 13th September. If the plans are agreed, legislative measures will be introduced in next year's Finance Bill.
Zyda Law are leading UK experts in energy development proposals, including gas projects. We specialise in obtaining planning and development consent for major schemes, some of which are often contentious.
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