What is the purpose of section 18 of the Oil Taxation Act 1975?

Section 18 is the interpretation section for Part I of the Oil Taxation Act 1975. It brings together definitions of all key terms used in the Petroleum Revenue Tax provisions, including participator, oil field, licence, and the Board, ensuring consistent application across all operative sections of Part I.

How does section 18 define a participator in an oil field for PRT purposes?

A participator is any person who holds an interest in a licence relating to an oil field, giving them the right to win oil from that field. PRT is charged on each participator in respect of their share of profits from the oil field, making this definition central to the operation of the tax.

What does winning oil mean under section 18 of the Oil Taxation Act 1975?

Winning oil includes any process of obtaining oil from natural strata, whether in the United Kingdom or a designated area of the continental shelf. Oil won from an oil field encompasses oil obtained during operations carried on in connection with that field, ensuring a broad scope of activities falls within the PRT charge.

How does section 18 use cross-references to the Income and Corporation Taxes Act 1988?

Where terms are not specifically defined within the Oil Taxation Act 1975, section 18 directs the reader to the Income and Corporation Taxes Act 1988 for supplementary definitions. General tax concepts such as company, connected persons, and market value take their meaning from the wider tax code, ensuring consistency across tax law.

Oil Taxation Act 1975 section 18

Interpretation of Part I

Section 18 provides definitions and interpretive rules for the key terms used throughout Part I of the Oil Taxation Act 1975, which deals with Petroleum Revenue Tax (PRT).

Defines essential terms used across Part I of the Act, including "participator", "oil field", "licence", "the Board" (meaning the Board of Inland Revenue), and other core concepts relevant to PRT.
Clarifies that references to winning oil include obtaining it from strata in the United Kingdom or a designated area, and that oil won from an oil field includes any oil won in the course of activities connected with that field.
Establishes that the Income and Corporation Taxes Act 1988 provides supplementary definitions where terms are not specifically defined within the Oil Taxation Act 1975 itself.
Sets out how certain expressions relating to companies, connected persons, and market value are to be interpreted by cross-reference to the relevant provisions of the taxes legislation.

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