Explanatory Notes

2013 CHAPTER 29

17 July 2013

Introduction

Section 89, Schedule 31: Decommissioning Relief: Miscellaneous Amendments Relating to Decommissioning

Details of the Schedule

Expenditure on abandonment guarantees

2.Paragraphs 1 and 2 amend sections 225N and 225R of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA) and sections 292 and 296 Corporation Tax Act 2010 (CTA) to ensure these sections also apply in respect of oil fields that are not subject to PRT.

Expenditure under abandonment guarantees

3.Paragraphs 3 and 4 provide that paragraph 8 of Schedule 3 and paragraph 2A of Schedule 5 to the Oil Taxation Act 1975 (OTA) do not apply to expenditure which is met out of a payment under an abandonment guarantee or security.

4.Paragraphs 5 to 7 omit sections and sub-sections in the Finance Act 1991 (FA), ITTOIA and CTA.

Reimbursement by defaulter in respect of abandonment expenditure

5.Paragraphs 8 to 10 omit sections in FA, ITTOIA and CTA so as to disapply, for the purposes of oil activities, the reimbursement rules.

Consequential amendments

6.Paragraphs 11 to 20 make minor consequential changes resulting from the amendments made by this Schedule.