OpenLegislation

Oil Taxation Act 1975

1975 c. 22 · Enacted 8 May 1975 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 12 February 2019.

An Act to impose a new tax in respect of profits from substances won or capable of being won under the authority of licences granted under the Petroleum (Production) Act 1934 or the Petroleum (Production) Act (Northern Ireland) 1964; to make in the law relating to income tax and corporation tax amendments connected with such substances or with petroleum companies; and for connected purposes.

[8th May 1975] I1C1C2C3X1

Annotations to the whole text

Modifications

C1

This Act is presented in the form in which it appears in the 1988 edition of The Taxes Acts (published by HMSO) and incorporating amendments made by the 1989 Inland Revenue Supplement and 1991 Statutes in Force Supplement. The style of editing differs from that applicable to most Acts published in Statutes in Force.

C2

General amendments etc. to Tax Acts (or Income Tax Acts or Corporation Tax Acts as the case may be) made by Taxes Management Act 1970 (c. 9, SIF 63:1), s. 41A(7) (as added by Finance Act 1990 (c. 29, SIF 63:1), s. 95(1)(2), British Telecommunications Act 1981 (c. 38, SIF 96), s. 82(2)(7); Telecommunications Act 1984 (c. 12, SIF 96), s. 72(3); Finance Act 1984 (c. 43, SIF 63:1), ss. 82(6), 85(2), 89(1)(7), 96(1)(7), 98(7), Sch. 9 para. 3(2)(9), Sch. 16 paras. 6, 12 and Finance Act 1985 (c. 54, SIF 63:1), ss. 72(1), 74(5), Sch. 23 para. 15(4), S.I. 1987/530, regs. 11(2), 13(1), 14, Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 4, 6, 7, 9, 32, 34, 78, 134, 135, 141, 142, 185, 191, 193, 194, 195, 200, 203, 209, 212, 213, 219, 247, 253, 272, 287, 314, 315, 317, 318, 325, 326, 327, 345, 350, 351, 368, 375, 381, 397, 414, 432, 440, 442, 446, 458, 460, 461, 463, 463(2)(3) (as added by Finance Act 1990 (c. 29, SIF 63:1), s. 50(2) ), 468, 474, 475, 486, 490, 491, 503, 511, 518, 524, 532, 544, 550, 556, 558, 569, 572, 582, 595, 601, 613, 617, 619, 621, 639, 656, 660, 663, 676, 689, 691, 694, 700, 701, 714, 716, 739, 743, 754, 763, 776, 780, 781, 782, 787, 789, 811, 828, 829, 832, 833, 834, 835, 837, 838, 839, 840, 841, 842, Sch. 2 para. 5, Sch. 4 para. 5, Sch. 13 para. 10, Sch. 16 para. 10, Sch. 21 para. 6, Sch. 26 para. 1, Sch. 27 para. 20, Finance Act 1988 (c. 39, SIF 63:1), ss. 66, 127(1)(6), Sch. 12 para. 6, Capital Allowances Act 1990 (c. 1, SIF 63:1), ss. 28(1), 68(8), 74, 82, 83(5), 148(5), 163(4), 164(2), S.I. 1990/627 and Finance Act 1990 (c. 29, SIF 63:1), s. 25(10)

C3

Act modified by Finance Act 1991 (c. 31, SIF 63:1), ss. 106(4), 108(3).

Act modified (27.7.1999) by 1999 c. 16, s. 98(2)(4)

Commencement

I1

Act wholly in force at Royal Assent.

Editorial notes

X1

General amendments to Tax Acts, Income Tax Acts, and/or Corporation Tax Acts made by legislation after 1.2.1991 are noted against Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) but not against each Act

Contents

  1. Part I: PETROLEUM REVENUE TAX
  2. 1Petroleum revenue tax.
  3. 2Assessable profits and allowable losses.
  4. 3Allowance of expenditure (other than expenditure on long-term assets and abortive exploration expenditure).
  5. 4Allowance of expenditure on long-term assets.
  6. 5Allowance of abortive exploration expenditure.
  7. 5AAllowance of exploration and appraisal expenditure.
  8. 5BAllowance of research expenditure.
  9. 6Allowance of unrelievable loss from abandoned field.
  10. 7Relief for allowable losses.
  11. 8Oil allowance.
  12. 9Limit on amount of tax payable.
  13. 9AOperating expenditure incurred while section 9 applies.
  14. 10Modification of Part I in connection with certain gas sold to British Gas Corporation.
  15. 11Application of Provisional Collection of Taxes Act 1968.
  16. 12Interpretation of Part I.
  17. 12ADate of delivery or appropriation: shipped oil not sold at arm's length
  18. Part II
  19. 13–19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  20. Part III: Miscellaneous and General
  21. 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  22. 21Citation, interpretation and construction.
  23. Schedule 1: Determination of Oil Fields
  24. Areas that are oil fields
  25. 1Paragraph 1
  26. 2Paragraph 2
  27. 3Paragraph 3
  28. 4Paragraph 4
  29. 5Paragraph 5
  30. Areas treated as continuing to be oil fields
  31. 6Paragraph 6
  32. 7Paragraph 7
  33. Schedule 2: Management and Collection of Petroleum Revenue Tax
  34. Management of tax
  35. 1Paragraph 1
  36. Returns by participators
  37. 2Paragraph 2
  38. 3Paragraph 3
  39. Appointment of responsible person for each oil field
  40. 4Paragraph 4
  41. Returns by the responsible person
  42. 5Paragraph 5
  43. 6Paragraph 6
  44. Production of accounts, books and other information
  45. 7Paragraph 7 Repealed
  46. Incorrect returns, accounts, etc.
  47. 8Paragraph 8 Repealed
  48. 9Paragraph 9 Repealed
  49. Assessments to tax and determinations of loss, etc.
  50. 10Paragraph 10
  51. 11Paragraph 11
  52. 12Paragraph 12
  53. 12AParagraph 12A
  54. 12BParagraph 12B
  55. Payment of tax
  56. 13Paragraph 13
  57. Claim for relief for overpaid tax etc
  58. 13AParagraph 13A
  59. Cases in which HMRC not liable to give effect to a claim
  60. 13BParagraph 13B
  61. Making a claim
  62. 13CParagraph 13C
  63. Decision on claim
  64. 13DParagraph 13D
  65. Assessment of claimant in connection with claim
  66. 13EParagraph 13E
  67. Contract settlements
  68. 13FParagraph 13F
  69. Appeals
  70. 14Paragraph 14
  71. Appeal: HMRC review or determination by tribunal
  72. 14AParagraph 14A
  73. Participator requires review by HMRC
  74. 14BParagraph 14B
  75. HMRC offer review
  76. 14CParagraph 14C
  77. Notifying appeal to the tribunal
  78. 14DParagraph 14D
  79. Nature of review etc
  80. 14EParagraph 14E
  81. Effect of conclusions of review
  82. 14FParagraph 14F
  83. Notifying appeal to tribunal after review concluded
  84. 14GParagraph 14G
  85. Notifying appeal to tribunal after review offered but not accepted
  86. 14HParagraph 14H
  87. Interpretation of paragraphs 14A to 14H
  88. 14IParagraph 14I
  89. Interest on tax
  90. 15Paragraph 15
  91. 16Paragraph 16
  92. 17Paragraph 17
  93. Schedule 3: Petroleum Revenue Tax: Miscellaneous Provisions
  94. Definition of sale of oil at arm’s length
  95. 1Paragraph 1
  96. Determination of market value: the notional delivery day for a quantity of oil
  97. 1AParagraph 1A
  98. Definition of market value of oil
  99. 2Paragraph 2
  100. 2AParagraph 2A
  101. Aggregate market value of oil for purposes of section 2(5)
  102. 3Paragraph 3
  103. Definition of market value of light gases
  104. 3AParagraph 3A
  105. Oil delivered in place of royalties to be disregarded for certain purposes
  106. 4Paragraph 4
  107. Effect of transfer to an associated company of participator’s rights etc. in connection with an oil field or relevant licence
  108. 5Paragraph 5
  109. Oil owned by a person other than a participator in the oil field from which it was won
  110. 6Paragraph 6
  111. Effect of certain transactions between participators
  112. 6AParagraph 6A
  113. Exclusion from section 2(4)(b) and (5)(d) of offshore oil in transit to place of first landing . . .
  114. 7Paragraph 7
  115. Certain subsidised expenditure to be disregarded
  116. 8Paragraph 8
  117. Election to have amounts mentioned in section 2(9)(b) and (c) spread
  118. 9Paragraph 9 Repealed
  119. 10Paragraph 10 Repealed
  120. Restriction of amount of reduction under section 8(1)
  121. 11Paragraph 11
  122. Transfers of interests in oil fields: post-transfer decommissioning expenditure
  123. 11AParagraph 11A
  124. Power to make regulations under this Schedule
  125. 12Paragraph 12
  126. Schedule 4: Provisions Supplementary to Sections 3 and 4
  127. Restrictions on expenditure allowable under section 3 or 4
  128. 1Paragraph 1
  129. 2Paragraph 2
  130. 3Paragraph 3 Repealed
  131. Disposal of long-term asset formerly used in connection with an oil field
  132. 4Paragraph 4
  133. 5Paragraph 5 Repealed
  134. Provisions supplementary to section 4(9) of this Act and paragraph 5(2) above
  135. 6Paragraph 6
  136. Insurance or compensation in respect of loss or destruction of long-term asset formerly used in connection with oil field
  137. 7Paragraph 7
  138. Assets acquired jointly by participators in different oil fields
  139. 8Paragraph 8
  140. Schedule 5: Allowance of Expenditure (other than Abortive Exploration Expenditure)
  141. Claim periods and claims
  142. 1Paragraph 1
  143. 2Paragraph 2
  144. 2AParagraph 2A
  145. 2BParagraph 2B
  146. 2CParagraph 2C
  147. 3Paragraph 3
  148. 4Paragraph 4
  149. Appeals
  150. 5Paragraph 5
  151. 6Paragraph 6
  152. 7Paragraph 7
  153. 8Paragraph 8
  154. 9Paragraph 9
  155. 10Paragraph 10
  156. Schedule 6: Allowance of Expenditure (other than Abortive Exploration Expenditure) on Claim by Participator
  157. 1Paragraph 1
  158. 2Paragraph 2
  159. Schedule 7: Allowance of Abortive Exploration Expenditure
  160. 1Paragraph 1
  161. Schedule 8: Allowance of Unrelievable Field Loss
  162. Reference and determination of question of abandonment of oil field
  163. 1Paragraph 1
  164. 2Paragraph 2
  165. 3Paragraph 3
  166. Claims by participators for allowance of unrelievable field losses
  167. 4Paragraph 4
  168. Schedule 9. . . . . . . . . . . . . . . . . . . . . . . . .Schedule 9. . . . . . . . . . . . . . . . . . . . . . . . .