Oil Taxation Act 1983 section 2

Schedule 4 paragraph 2 – Conditions for chargeability on foreign field receipts

Section 2 sets out the two conditions that must both be met before a participator in a foreign oil field can be charged to tax under Schedule 4 on consideration received in connection with a foreign field asset.

• A participator in a foreign field is only chargeable to tax under Schedule 4 if two conditions are both satisfied.
• The first condition is that the field asset giving rise to the consideration must be a "chargeable asset" in relation to that participator, as defined in paragraph 3 of the Schedule.
• The second condition is that the consideration must constitute a "receipt for which the participator is accountable", as determined under paragraph 4 of the Schedule.
• When both conditions are met, the consideration is known as a "chargeable receipt" of the participator — this is the term used throughout the rest of the Schedule.

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