Capital Allowances Act 2001

554 Circumstances in which oil licence relates to undeveloped area U.K.

(1) A UK oil licence relates to an undeveloped area if—

(a) no consent for development has been granted to the licensee for any part of the licensed area by the relevant authority, and

(b) no programme of development has been served on the licensee or approved for any part of the licensed area by the relevant authority.

(2) A foreign oil concession relates to an undeveloped area if—

(a) no development has actually taken place in any part of the licensed area, and

(b) no condition for the carrying out of development anywhere in that area has been satisfied—

(i) by the grant of any consent by the authorities of a country or territory exercising jurisdiction in relation to the area, or

(ii) by the approval or service on the licensee, by any such authorities, of any programme of development.

(3) Subsections (4) and (5) of section 36 of FA 1983 (meaning of development) apply for the purposes of subsections (1) and (2).

(4) In subsection (1) “licensee” means—

(a) the person entitled to the benefit of the licence or, if two or more persons are entitled to the benefit, each of those persons, and

(b) a person who has rights under an agreement which is—

(i) approved by [F1 the Commissioners for Her Majesty’s Revenue and Customs], and

(ii) certified by the relevant authority to confer on that person rights which are the same as, or similar to, those conferred by a licence.

(5) In subsection (2) “licensee” means the person with the concession or any person having an interest in it.

Textual Amendments

F1 Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 83(1); S.I. 2005/1126, art. 2(2)(h)