SCHEDULES
SCHEDULE 41Oil assets put to other uses
Part 1Petroleum revenue tax
No reduction of allowable expenditure
3
1
Paragraph 8 of Schedule 1 to OTA 1983 (allowable expenditure: use of new asset otherwise than in connection with taxable field) is amended as follows.
2
In sub-paragraph (1)(a) and (b), for “in connection with a taxable field” substitute “
for a qualifying purpose
”
.
3
After sub-paragraph (2) insert—
2A
In sub-paragraph (1) a reference to use for a qualifying purpose is a reference to—
a
use in connection with a taxable field, 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.
2B
In this Act a reference to use of an asset for an ineligible oil purpose is a reference to—
a
use in connection with an oil field that is not a taxable field, and
b
use for any other purpose (apart from a purpose falling within section 3(1)(b) of the principal Act) of a separate trade consisting of activities falling within section 492(1) of the Income and Corporation Taxes Act 1988.
2C
In sub-paragraphs (2A) and (2B) 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 this Act, are tariff receipts.