Finance Act 2013

90 Expenditure on decommissioning onshore installations U.K.

(1) Section 163 of CAA 2001 (meaning of “general decommissioning expenditure”) is amended as follows.

(2) In subsection (1)—

(a) the words after “if” become paragraph (a) of that subsection,

(b) in that paragraph, for “subsections (3) to (4)” substitute “ subsections (3), (3A) and (4) ”, and

(c) at the end of that paragraph insert “, or

(b) the conditions in subsections (3B) and (4) are met.”

(3) After subsection (3A) insert—

“(3B) The expenditure must have been incurred on decommissioning plant or machinery—

(a) which has been brought into use wholly or partly for the purposes of a ring fence trade, and

(b) which—

(i) is, or forms part of, a relevant onshore installation, or

(ii) when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation.

(3C) In subsection (3B) “relevant onshore installation” means any building or structure which—

(a) falls within any of sub-paragraphs (ii) to (iv) of section 3(4)(c) of OTA 1975,

(b) is not an offshore installation, and

(c) is or has been used for purposes connected with the winning of oil from an oil field any part of which lies within—

(i) the boundaries of the territorial sea of the United Kingdom, or

(ii) an area designated under section 1(7) of the Continental Shelf Act 1964.”

(4) In subsection (5)(a), for “ “oil field” has” substitute “ “oil” and “oil field” have”.

(5) The amendments made by this section have effect in relation to expenditure incurred on decommissioning carried out on or after the day on which this Act is passed.