Oil Taxation Act 1983 section 12

Charge of receipts attributable to UK use of foreign field asset

Section 12 brings into the petroleum revenue tax charge certain receipts earned by participants in foreign oil fields when assets connected with those fields are used in or around the United Kingdom.

• Receipts arising after 30 June 1982 from the UK use of a foreign field asset, related services, or the disposal of such an asset are brought into the petroleum revenue tax charge under Schedule 4 of the Act.
• A "foreign field" is an area outside UK jurisdiction that has been designated by the Secretary of State by statutory instrument, though no new designations could be made on or after 1 July 1993.
• A "field asset" is a non-mobile asset situated in the UK, its territorial sea, or a designated area, which is, has been, or is expected to be used in connection with a foreign field — and "UK use" means use in exploring or exploiting seabed resources in UK territorial waters or a designated area.
• Even an asset that does not directly connect to a foreign field can qualify as a field asset if its use generates relevant receipts, its useful life extends more than six months beyond the first receipt, and it is used in association with another asset that is already a field asset.

---