Finance Act 2009 (c. 10)

SCHEDULES

SCHEDULE 42 U.K. PRT: former licensees and former oil fields

Part 1 U.K. Persons who cease to be licensees because of cessation events

1 U.K. OTA 1975 is amended as follows.

2 (1) Section 12 (interpretation of Part 1) is amended as follows. U.K.

(2) In subsection (1), in the definition of “participator”—

(a) for “any”, in the first place, substitute “ a ”,

(b) after paragraph (a) insert—

“(aa) a person who is no longer a licensee in respect of any licensed area wholly or partly included in the field, but who—

(i) was such a licensee at any time in any chargeable period preceding the relevant chargeable period, and

(ii) ceased to be such a licensee because of a cessation event; and”,

(c) in paragraph (b), after “field” insert “ (and who does not fall within paragraph (aa) of this definition) ”,

(d) in paragraph (c), after “paragraph” insert “ (aa) or ”, and

(e) omit the words after paragraph (g).

(3) After that subsection insert—

“(1A) In the definition of “participator” in subsection (1)—

(a) “cessation event”, in relation to an oil field to which a licence relates, means any of the following—

(i) determination of the licence by the licensee,

(ii) revocation of the licence by the Secretary of State or a Northern Ireland Department,

(iii) expiry of the licence at the end of its term,

(iv) the licensed area ceasing to include any relevant area whatsoever, by reason of the licensee surrendering the licence so far as it relates to the whole of the relevant area, and

(v) the licence ceasing to apply to the oil field by reason of the operation of the licence;

and for the purposes of sub-paragraph (iv) “relevant area” means an area which is, or combination of areas each of which is, included in the oil field (whether or not such an area falls partly outside the oil field);

(b) “current participator”, “former participator” and “default payment” have the same meanings as in paragraph 2A of Schedule 5.”

3 U.K. In Schedule 5 (allowance of expenditure other than abortive exploration expenditure), in paragraph 2C(2)—

(a) in the definition of “current participator”, after “paragraph (a),” insert “ (aa), ”, and

(b) in paragraph (b) of the definition of “former participator”, after “paragraph (a),” insert “ (aa), ”.

4 U.K. The amendments made by this Part have effect in relation to persons who cease to be licensees because of cessation events occurring in chargeable periods that begin after 30 June 2009.