Corporation Tax Act 2010 section 356BB

The activities

Section 356BB defines the oil-related activities that fall within the scope of these provisions, covering the searching for, extracting, transporting, and initial treating or storing of oil.

• Searching for oil, whether carried out directly by a company or by another party on its behalf, counts as a qualifying activity.
• Extracting oil is a qualifying activity provided the company, or an associated company, holds the rights authorising that extraction.
• Transporting extracted oil is a qualifying activity only where the destination is a place at which an arm's length seller could reasonably be expected to deliver it — and if there is more than one such place, the one nearest to the extraction site is used.
• Initial treatment or initial storage of oil won from a site is a qualifying activity, subject to the same requirement that the extraction rights are held by the company or an associated company, and subject to specific limits on what counts as initial storage.