Oil Taxation Act 1983 section Schedule 1 paragraph 2

Remote assets: timing and capping of expenditure relief

Schedule 1 paragraph 2 restricts when and how much expenditure on a "remote asset" — an associated asset situated more than 100 metres from the nearest qualifying asset used in connection with the principal oil field — can be relieved against petroleum revenue tax profits.

• A "remote asset" is an associated asset (as defined in paragraph 1) where some part of it is more than 100 metres from the nearest part of another asset used in connection with the principal oil field
• Expenditure on a remote asset that qualifies for relief only by virtue of paragraph 1 cannot be brought into account until the first chargeable period in which tariff receipts or disposal receipts from that asset are included in the participator's positive amounts
• In any chargeable period, the amount of remote asset expenditure that can be set against profits is capped at the total of tariff receipts and disposal receipts derived from the remote asset in that period
• Where tariff receipts from a user field have been reduced by the tariff receipts allowance under section 9, the portion attributable to the remote asset is determined on a pro-rata basis reflecting its share of qualifying tariff receipts before the reduction

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