Explanatory note

These Regulations amend the Principal Regulations (S.I. 1982/92) to take account of the abolition of supplementary petroleum duty and the introduction of advance petroleum revenue tax with effect from chargeable periods ending after 31st December 1982. Regulation 6 provides that participators in fields who have made elections under the original Regulations do not have to make new elections for the amendments to extend to them.

Supplementary petroleum duty is a temporary duty which applies for the chargeable periods in 1981 and 1982 only (section 122(5) Finance Act 1981 and section 132(2) Finance Act 1982). It is charged at 20 per cent of gross revenues, after the allowance of 500,000 tonnes of oil per chargeable period tax free. Advance petroleum revenue tax was introduced by sections 139-142 and Schedule 19 Finance Act 1982. It will be charged on a similar basis but unlike the duty is not a separate tax but an advance payment of petroleum revenue tax which can be set-off against current or future liabilities.