Oil Taxation Act 1975 Schedule 1 paragraph 6

Areas treated as continuing to be oil fields

Paragraph 6 of Schedule 1 ensures that when an area loses its formal status as an oil field (or part of one), it is still treated as an oil field for tax purposes until certain conditions are met.

• If an area ceases to qualify as an oil field or part of an oil field, it is nevertheless treated as though it still holds that status for tax purposes.
• While this deemed status applies, any reference to an oil field in the legislation includes a reference to that area.
• The deemed oil field status ends if and to the extent that the area once again formally qualifies as an oil field or part of one.
• If the area does not regain formal oil field status, the deemed status expires at the end of the second chargeable period following the chargeable period in which the area is decommissioned.