Clare Munro, Head of Energy and Infrastructure at Brodies LLP, said: “I strongly welcome the Chancellor’s announcement of a review of decommissioning tax issues, and reports that an expert panel will be established to examine these matters.

It has become increasingly apparent in the last couple of years that the current tax system inadvertently creates barriers to transferring oil and gas asset ownership in mid to late life.

“The issues involved are very complex and careful consideration needs to be given to any possible changes in the tax structure, to ensure that they do not have unintended consequences which undermine fiscal stability – the best people to do this are industry tax experts so it is very positive that the government is proposing this review.”