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HMRC internal manual

Oil Taxation Manual

From
HM Revenue & Customs
Updated
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Corporation Tax Ring Fence: Definition of Oil Extraction Activities

CTA10\S272

Oil extraction activities are defined by CTA10\S272 as any activities of a company

  • in searching for oil in the United Kingdom or a designated area or causing such searching to be carried out for it
  • in extracting, or causing to be extracted for it, oil at any place in the United Kingdom or a designated area under rights which—

    • authorise the extraction, and
    • are held by it or by a company associated with it.
  • in transporting, or causing to be transported for it, oil extracted at any such place not on dry land under rights which—

    • authorise the extraction, and
    • are held by it or by a company associated with it.

if the transportation meets the conditions that

* the transportation is to the place where the oil is first landed in the United Kingdom
* is to the place in the United Kingdom, or 
* in the case of oil first landed in another country, is to the place in that or any other country (other than the United Kingdom),
  • Activities of a company in effecting, or causing to be effected for it, the initial treatment or initial storage of oil won from any oil field under rights which—

    • authorise its extraction, and
    • are held by it or by a company associated with it.
  • Where initial storage and initial treatment have the same meaning as in OTA75\S12(1).