We have been asked “Looking forward to reading the further research on the impact of EPL on decommissioning.”
In response we quote directly from the Paper;
“The incentive effect is likely to impact decommissioning activity in particular. A noteworthy feature of the detailed rules of the EPL is that decommissioning expenditure is not a deductible item. Given the presence of the Decommissioning Relief Deed (DRD) this may be regarded as controversial. The EPL will clearly reduce cash flows and, given the investment allowances from undertaking new investments, there are incentives to delay decommissioning work. This will be the subject of further research”.
F J Kiernan
10th March 2023