SCHEDULES
SCHEDULE 41Oil assets put to other uses
Part 1Petroleum revenue tax
Allowance of decommissioning and restoration expenditure
1
1
Section 3 of OTA 1975 (allowance of expenditure) is amended as follows.
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.