What are the claim periods for qualifying expenditure allowances under Oil Taxation Act 1983 section 12?

Section 12 establishes fixed six-month claim periods for qualifying expenditure allowances relating to foreign field assets. The first claim period ends on 30 June 1982, serving as the baseline. Each subsequent period runs exactly six months from the end of the previous one, creating a continuous rolling schedule for submitting expenditure claims.

What is the baseline date for claim periods under section 12 of the Oil Taxation Act 1983?

The baseline date is 30 June 1982, which marks the end of the very first claim period. All subsequent claim periods are calculated from this anchor date in consecutive six-month intervals. For example, the second period runs from 1 July 1982 to 31 December 1982, and the third from 1 January 1983 to 30 June 1983.

How does a participator determine the correct claim period for qualifying expenditure?

A participator must identify the relevant foreign field, determined by the rules governing how a field asset is regarded as being used, and allocate expenditure to the correct six-month window. For instance, expenditure incurred in October 1983 falls within the claim period running from 1 July 1983 to 31 December 1983.

What is a foreign field for the purposes of section 12 of the Oil Taxation Act 1983?

A foreign field is an oil field situated outside the United Kingdom. Under section 12, the foreign field to which a claim relates is the one in connection with which the relevant field asset is regarded as being used. Qualifying expenditure on assets linked to that foreign field must be claimed within the applicable six-month period.

Oil Taxation Act 1983 section 12

Claim periods for qualifying expenditure allowances

Section 12 establishes the timing framework for making claims for qualifying expenditure allowances relating to foreign field assets used in connection with the United Kingdom.

Claims for qualifying expenditure allowances follow a fixed schedule of claim periods tied to a specific foreign field.
The first claim period ends on 30 June 1982, serving as the baseline date for all subsequent periods.
Each subsequent claim period runs for exactly six months from the end of the previous claim period.
The foreign field to which the claim relates is the one in connection with which the relevant field asset is regarded as being used.

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