Part 7Miscellaneous
Petroleum revenue tax
102Abolition of PRT for fields recommissioned after earlier decommissioning
1
Section 185 of FA 1993 (abolition of PRT for oil fields with development consents on or after 16th March 1993) is amended as follows.
2
In subsection (1)
(meaning of “non-taxable field” and “taxable field”), after paragraph (b) insert “
or an oil field which does not meet the conditions in paragraphs (a) and (b) above but which does meet the conditions in subsection (1A) below
”
.
3
After that subsection insert—
1A
An oil field meets the conditions in this subsection if—
a
the Secretary of State has at any time approved one or more abandonment programmes under Part 4 of the Petroleum Act 1998 (or Part 1 of the Petroleum Act 1987) in relation to all assets of the field which are relevant assets;
b
those programmes have been carried out to the satisfaction of the Secretary of State;
c
a development decision is made in relation to the field; and
d
that decision is made on or after 16th March 1993 and after those programmes have been so carried out.
1B
For the purposes of subsection (1A)(a) above, an asset is a relevant asset of an oil field if—
a
it has at any time been a qualifying asset (within the meaning of the 1983 Act) in relation to any participator in the field; and
b
it has at any time been used for the purpose of winning oil from the field.
1C
For the purposes of subsection (1A)(c) and (d) above, a development decision is made in relation to an oil field when—
a
consent for development is granted to a licensee by the Secretary of State in respect of the whole or part of the field; or
b
a programme of development is served on a licensee or approved by the Secretary of State for the whole or part of the field.
4
In subsection (7)
(meaning of “development” etc), for “subsections (1) and (2)” substitute “
this section
”
.
5
An oil field which meets the conditions in subsection (1A) of section 185 of FA 1993 (as inserted by subsection (3) above) becomes a non-taxable field for the purposes of any enactment relating to petroleum revenue tax—
a
in any case where the development decision is made before 1st July 2007, on that date, and
b
in any other case, on the date on which the development decision is made.