Oil and gas companies in the North-East risk going bankrupt, or having to make further job cuts, due to a new framework for property rates which will result in a multimillion dollar tax bombshell.
Oil and gas companies in the North-East risk going bankrupt, or having to make further job cuts, due to a new framework for property rates which will result in a multimillion dollar tax bombshell, according to daily Scottish newspaper The Press and Journal.
Companies like Apache North Sea, based at the Prime Four business park at Kingswells, Aberdeen, will see their non-domestic rates bills rocket, The Press and Journal reported. The rateable value for Apache’s offices has increased by 47 percent to $2.7 million (GBP 2.2 million), according to assessments seen by Eric Shearer, a partner at property firm Knight Frank, the newspaper stated.
The increases are said to be the result of new rateable values, which are expected to become effective in April. Firms based in Aberdeen and the surrounding area are anticipated to be disproportionately hit by these new rateable values however, as they are based on an assessment in April 2015, when the commercial property in the area had yet to adjust to the drop in oil prices, the Journal reported.
In addition to Apache North Sea, a number of other oil and gas companies have offices in the northeast. These include BP plc, Subsea 7 and Wood Group.
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