Details of the Section
2.Subsection (1) provides that this section applies where a sum is payable to a claimant under a decommissioning relief agreement.
3.Subsections (2) and (3) provide that where expenditure incurred by the claimant, and taking into account its assessable profits, is used to calculate the payment under the decommissioning relief agreement then, for the purposes of petroleum revenue tax, the claimant’s profits are treated as reduced by that expenditure as if the payment had been made by way of relief through a repayment of tax.
4.Subsections (4) and (5) provide that where expenditure incurred by the claimant is used to calculate the payment under the decommissioning relief agreement with reference to another company’s assessable profits, then, for the purposes of petroleum revenue tax, that other company’s profits are treated as reduced by that expenditure as if that other company had incurred the expenditure and the payment had been made by way of relief through a repayment of tax.
5.Subsection (6) provides the meaning of “assessable profit”, “chargeable period”, “company”, “decommissioning relief agreement” and “the reference amount”.