Changes in North Sea oil tax structure were introduced by the United Kingdom government in mid-1979. The new system is aimed at increasing revenues to the state without damage to exploitation and production. The effects that the new tax regime and each of its components will have on different types of fields being exploited under various circumstances are examined. The analysis also considers sensitivity to capital-cost inflation, effects on multi-field operation, and the results of two other possible tax schemes. It is found that the new tax scheme will considerably alter the structure of the tax burden and will increase the overall tax take. Marginal tax rates will also increase, not least for some fields with low expected returns. The new scheme will, however, continue to favor capital-intensive exploitation techniques. 2 references, 17 tables.