Oil Taxation Act 1983 section 11

Charge of receipts

Section 11 establishes how certain receipts connected with oil fields are brought into charge for petroleum revenue tax purposes, ensuring that amounts received in connection with the use of assets or the provision of services related to oil extraction are properly taxed.

• Tariff receipts and tax-exempt disposals received by a participator in an oil field are treated as assessable receipts for petroleum revenue tax purposes.
• These receipts are charged in the chargeable period during which they are received, linking the tax liability to the timing of actual receipt.
• The provision applies to amounts received in connection with the use of assets that have qualified for petroleum revenue tax allowances, or for services provided in connection with oil field operations.
• The section works alongside the broader petroleum revenue tax framework to prevent participators from benefiting from tax relief on asset expenditure while also receiving untaxed income from those same assets.

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