Corporation Tax Act 2010 section 356M

Oil contractor activities treated as separate trade

Section 356M creates a ring fence around a contractor's oil contractor activities by requiring them to be treated as a separate trade for corporation tax purposes.

• Where a contractor carries on oil contractor activities as part of a wider trade, those activities must be treated as a separate trade for corporation tax on income.
• This separate trade is distinct from all other activities the contractor carries on as part of its business.
• The definition of which activities fall within this ring fence is based on the definition of "oil contractor activities" found in the preceding provisions of the Act.
• Additional restrictions on how the profits of the ring-fenced trade are calculated mirror those already in place for the existing oil ring fence regime.