Corporation Tax Act 2010 section 356BA

Onshore oil-related activities

Section 356BA defines what counts as "onshore oil-related activities" for the purposes of the supplementary charge onshore allowance rules.

• Onshore oil-related activities are activities carried on onshore that either fall within the specific categories listed in section 356BB(1) to (4) or consist of acquiring, enjoying or exploiting oil rights.
• Activities count as "onshore" if they are authorised under a landward licence issued under Part 1 of the Petroleum Act 1998 or the Petroleum (Production) Act 1934, or under a licence issued under the Petroleum (Production) Act (Northern Ireland) 1964.
• A "landward licence" is a licence relating to an area that falls within the definition of "landward area" in the regulations under which the licence application was made.
• This definition is important because only companies carrying on onshore oil-related activities can qualify for the onshore allowance, which reduces the amount of supplementary charge they pay on their ring fence profits.