The UK Government has backed down on plans to tax the oil and gas industry for every worker it sends offshore on helicopters.

The UK Government were considering applying the top rate of air passenger duty (APD) to all flights to rigs and platforms.  It had been estimated that the proposal would have cost the industry some £165million a year.

However, after an angry backlash from industry chiefs and politicians at both Holyrood and Westminster, Scottish Secretary Michael Moore confirmed that North Sea helicopter operations would not be “penalised”.

Press and Journal 19 May 2011

Note.  APD was one of four minor taxes that the Calman Commission on Scottish Devolution said should be devolved to the Scottish Parliament.  As yet only Stamp Duty Land Tax and Landfill Tax are included in the Scotland Bill.  It is not yet clear if APD and Aggregates Levy are to be included.