The three main taxes and levies imposed on companies operating in the oil and gas sector include ring-fence corporation tax and supplementary charge, petroleum revenue tax and license fees. HM Revenue Revenue and Customs is the main body responsible for collecting and managing taxes paid to the central government. Responsibility for coal mining-related levies rests with the Coal Authority, aside from in Northern Ireland, where the Department for Enterprise, Trade and Investment (DETI) manages levies. For non-fossil minerals, local authorities are responsible for levying and collecting Section 106 payments, for mining planning permission.
Oil and gas licenses are published on the websites of the Oil and Gas Authority website and the Northern Ireland DETI. Information on coal licenses can be requested from the Coal Authority and the DETI.
Oil and gas licenses are awarded through competitive tender, although out-of-round applications can be granted in exceptional circumstances. Onshore Northern Ireland, the DETI holds jurisdiction (but not offshore) and has awarded one oil and gas license through ‘first come first served’. Coal licenses are granted on a ‘first come first served’ basis.
For minerals onshore aside from oil, gas, coal, gold and silver, ownership of subsoil resources is transferred with title deed. Planning and environmental permissions are granted by local authorities. Mineral rights offshore are managed by the Crown Estate, with offshore mining licenses awarded on a competitive basis. In Northern Ireland, the only exception, mineral licenses are granted on a ‘first come first served’ basis.
The UK public registry of ultimate beneficial owners of UK companies is called the People with Significant Control register. It was established in June 2016 under the UK Small Business, Enterprise and Employment Act 2015 and is part of the Companies House Register. Further information about the UK's beneficial ownership work is available here and here.
The United Kingdom is a leading producer of oil (the world’s 23rd largest, the EU’s largest), gas (20th, the EU’s second-largest) and coal (25th), but also produces a range of industrial and construction materials. The country is also an emerging producer of tungsten and tin. Ongoing development of oil and gas is taking place in the North Sea, not only offshore Scotland but also England and Wales.
The United Kingdom has rich deposits of crude oil, natural gas, coal, tungsten, tin as well as a range of industrial and construction materials. Abundant oil and gas reserves are found offshore, while coal deposits are largely centred in Scotland, England and South Wales.
|Oil||4,339||million tons||Mostly offshore. Proven and probable reserves, not possible resources.|
|Gas||2,893||billion Sm3||Mostly offshore. Proven and probably reserves, not possible resources.|
|Coal||4,000||million metric tons||Potential resources. The UK has around 166 million tons of coal reserves operating mines and those in planning stages. There are another 167 million tons of coal in projects at pre-planning stage.|
|Tungsten||318,000||metric tons||England hosts the world's four largest known tungsten deposit, the Drakelands mine near Plympton, Devon.|
|Tin||32,700||metric tons||Located at the Drakelands Mine near Plympton, Devon.|
|Kaolin||N/A||UK deposits of kaolin are concentrated in Cornwall and Devon and world-class in terms of size and quality.|
|Ball clay||N/A||Deposits are centred in Devon and Dorset, mainly used for the manufacture of white ware ceramics|
|Potash||N/A||Yorkshire has one of the largest proven world deposits of potassium-rich minerals.|
|Salt||N/A||England accounts for 95% of UK salt production, 80% of which takes place in Cheshire; the Boulby potash mine in Yorkshire is another large centre|
|Flourspar||N/A||Production is centred at the Southern Pennine ore field in the Peak District National Park.|
The latest EITI disclosures (2016) show that the United Kingdom received less from extractive industry taxation than it paid out in tax rebates by GBP 396m. Almost all (over 99%) of these payments were related to hydrocarbons, with the rest from mining. Revenues were collected through ring-fence corporation tax (77%), petroleum revenue tax (19%) and license fees (2%).
HM Revenue and Customs manages all of the British state’s revenues from the extractive industries, aside from S106 payments levied by local authorities and the levy managed by the Oil and Gas Authority. Northern Ireland also receives a population-based share of revenues from petroleum license awarded on its offshore.
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
One of the United Kingdom’s objectives for EITI implementation is to support moves towards common global reporting standards in oil, gas and mining.
The United Kingdom is developing a publicly available register with information on who owns and controls companies.
- The 2014 EITI Report provides five-year oil and gas production, budget and trade balance forecasts. Disaggregated employment figures are also provided for mining and quarrying.
The UK government has taken a strong leadership role on the global tax transparency debate. The EITI was set up under its leadership back in 2002. The UK then supported the EU country-by-country reporting, committed to implement the EITI in 2013, placed tax and transparency at the centre of the G8 summit in 2013, and set up a beneficial ownership register in June 2016.In April 2018, the UK Parliamentary voted to require its overseas territories, including the British Virgin Islands and the Cayman Islands, to establish public beneficial ownership registers.
At a joint press conference with President of France François Hollande on 22 May 2013, Prime Minister David Cameron announced that the United Kingdom would implement the EITI. The commitment was reaffirmed at the 6th EITI Global Conference in Sydney in May 2013 and in the United Kingdom’s second OGP National Action Plan published at the 2013 OGP London Summit. The first EITI launch event took place on 9 July 2013 and the nominations to the multi-stakeholder group (MSG), composed of four members from each stakeholder group, were finalised in September 2013. The United Kingdom submitted its EITI Candidature application on 5 August 2014, approved by the EITI Board on 15 October 2014.
The present UK EITI Champion is Lord Henley.
This EITI Report covers United Kingdom's extractive sector in 2015. It was published in March 2017.
This is the United Kingdom EITI 2016 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
This EITI Report covers United Kingdom's extractive sector in 2014. It was published in April 2016.
This is the United Kingdom EITI 2015 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
This is the United Kingdom EITI 2015 work plan (in accordance with Requirement 1.5).