Finance Act 2009

1 (1) Section 3 of OTA 1975 (allowance of expenditure) is amended as follows. U.K.

(2) In subsection (1C)(b), for “in connection with the field” substitute “ for a qualifying purpose ”.

(3) In subsection (1D), for “in connection with the field” substitute “ for a qualifying purpose ”.

(4) After that subsection insert—

“(1DA) In subsections (1C) and (1D) a reference to use for a qualifying purpose is a reference to—

(a) use in connection with the taxable field mentioned in subsection (1C), and

(b) other use in—

(i) the United Kingdom,

(ii) the territorial sea of the United Kingdom, or

(iii) a designated area,

except use wholly or partly for an ineligible oil purpose.

(1DB) In subsection (1DA)(b) the reference to use for an ineligible oil purpose is a reference to—

(a) use in connection with an oil field other than the taxable field mentioned in subsection (1C), and

(b) use for any other purpose (apart from a purpose falling within section 3(1)(b)) of a separate trade consisting of activities falling within section 492(1) of the Income and Corporation Taxes Act 1988.

(1DC) In subsections (1DA) and (1DB) a reference to use in connection with a taxable field or other oil field includes use giving rise to receipts which, for the purposes of the Oil Taxation Act 1983, are tariff receipts.”