Oil Taxation Act 1975 Schedule 4 paragraph 1

Restrictions on expenditure allowable under section 3 or 4

Schedule 4 paragraph 1 prevents the same asset-related expenditure from being claimed twice against the same oil field by different persons, whether the expenditure relates to acquiring, renting or hiring assets, obtaining services, or receiving rights or licences.

• Where one person has already received an allowance under section 3 or 4 for expenditure on acquiring, creating or improving an asset in relation to a particular oil field, another person cannot also claim an allowance for acquiring that same asset against the same field.
• This anti-duplication rule applies equally to expenditure on renting or hiring an asset or any interest in an asset, not just outright purchases.
• The restriction also covers expenditure on obtaining services or other business facilities of any kind, as well as expenditure on obtaining rights, licences or other interests (apart from interests in assets, which are already covered).
• The interpretive provisions in section 4(13) apply to this restriction, ensuring that references to assets and related concepts are read consistently with the main allowance rules.