Oil Taxation Act 1975 Schedule 1 paragraph 7

Areas treated as continuing to be oil fields

Schedule 1 paragraph 7 sets out when a relevant area (one that is still treated as an oil field under paragraph 6) is considered to have been decommissioned, and the process for HMRC decisions and appeals relating to that decommissioning status.

• A relevant area is decommissioned only when all of its qualifying assets (as defined in the Oil Taxation Act 1983) have been decommissioned.
• Where the UK offshore decommissioning regime applies (under the Petroleum Act 1998 or the Petroleum Act 1987), assets are decommissioned once the Secretary of State has approved the abandonment programme(s) and those programmes have been completed to the Secretary of State's satisfaction.
• Where the UK offshore decommissioning regime does not apply, HMRC must be satisfied that the assets have been decommissioned, taking into account any decommissioning obligations under any applicable law, whether UK or foreign.
• The responsible person must be notified of any HMRC decision on decommissioning status and has three months from receiving that notice to appeal in writing; appeals follow the standard tribunal procedures set out in Schedule 2 of the Act.

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