Income Tax (Trading and Other Income) Act 2005 section 874

Activities in UK sector of continental shelf

Section 874 provides that profits derived from exploration or exploitation activities or rights relating to the UK sector of the continental shelf are treated for income tax purposes as profits derived in the UK.

• Profits from exploration or exploitation activities carried on in the UK sector of the continental shelf are treated as UK profits for income tax purposes.
• Profits from rights to assets produced by such activities, or interests in those assets, are also treated as UK profits.
• Exploration or exploitation activities cover operations connected with the seabed, subsoil and their natural resources in the UK or the UK continental shelf sector.
• The UK sector of the continental shelf comprises areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964.