What does section 15 of the Oil Taxation Act 1983 do?

Section 15 modifies the petroleum revenue tax assessment process when tax is chargeable solely in relation to UK use of foreign field assets. It substitutes a special rule so that chargeable receipts are drawn directly from the participator's tax return particulars, replacing the standard sub-paragraph that would otherwise govern how those receipts are established for assessment purposes.

How are chargeable receipts determined under section 15 for foreign field asset tax?

Under section 15, the amount of chargeable receipts as defined in Schedule 4 to the 1983 Act must be taken from the particulars included in the participator's tax return. This replacement rule means the return figures are the starting point, making the assessment process self-contained without reference to broader mainstream petroleum revenue tax assessment rules.

How does the tariff receipts allowance reduction work under section 15?

Any reduction in chargeable receipts allowed under the tariff receipts allowance provisions, as applied to foreign field asset situations, is determined based on the same figures included in the participator's tax return. The allowable reductions flow directly from those return figures, ensuring the assessment is calculated consistently from the self-reported particulars.

What are foreign field assets in the context of UK petroleum revenue tax?

Foreign field assets are assets connected with an oil field outside the United Kingdom that are used to provide services to a UK oil field. When such assets generate chargeable receipts from their UK use, section 15 applies a modified assessment procedure so that the tax arising is determined directly from the participator's return figures.

Oil Taxation Act 1983 section 15

Chargeable receipts from foreign field assets and the determination process

Section 15 modifies how the tax assessment process works when the tax in question relates specifically to UK use of foreign field assets, by substituting a special rule for determining chargeable receipts.

When tax is chargeable solely in relation to UK use of foreign field assets, a modified assessment process applies.
The amount of chargeable receipts must be taken from the particulars included in the participator's tax return.
Any reduction in those receipts allowed under the tariff receipts allowance provisions is determined based on those same return figures.
This substitution replaces the standard sub-paragraph that would otherwise govern how chargeable receipts are established for assessment purposes.

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