Oil Taxation Act 1975 Schedule 7 paragraph 1

Claims for exploration, appraisal, and research expenditure allowances

Schedule 7 paragraph 1 sets out the procedure for claiming allowances for abortive exploration expenditure, exploration and appraisal expenditure, and research expenditure against petroleum revenue tax, and explains how the general claims machinery applies to these types of expenditure.

• A participator in an oil field must submit claims for abortive exploration expenditure, exploration and appraisal expenditure, or research expenditure directly to HMRC (the Board).
• If a participator discovers an error or mistake in a claim already submitted, they may file a supplementary claim to correct it.
• The detailed procedural rules for making and processing claims (set out in Schedule 5 of the Act for field expenditure claims) are applied, with necessary modifications, to these exploration, appraisal, and research expenditure claims.
• Key modifications include restricting references to the individual participator making the claim (rather than all participators) and removing provisions that are only relevant to field development expenditure.

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