Oil Taxation Act 1983 section 16

Extending corporation tax provisions to foreign fields

Section 16 of Schedule 4 extends the corporation tax rules in Section 11 of the Oil Taxation Act 1983 so that they apply not only to UK oil fields but also to foreign fields and their associated receipts.

• Section 11 (which deals with the application of asset-related receipts to corporation tax) is extended to cover foreign fields as well as UK oil fields.
• References to a "participator" in Section 11 are, for foreign fields, to be interpreted in line with the definition used for foreign field participants elsewhere in the Act.
• References to "tariff receipts" in Section 11 are broadened to include chargeable receipts from foreign fields — that is, consideration received or receivable for the use of qualifying assets in connection with those fields.
• The extensions covering foreign fields and the modified definition of participator also apply to the anti-avoidance rule in paragraph 11(3) of Schedule 2, to the extent that rule operates for Section 11 purposes.