SCHEDULES

SCHEDULE 37 U.K.Oil taxation: tax-exempt tariffing receipts and assets producing them

Part 1 U.K.Amendments of the Oil Taxation Act 1983 relating to allowable expenditure and disposal receipts

Exclusion from s.3(4) of expenditure on assets giving rise to tax-exempt tariffing receipts U.K.

3 U.K.After section 3 insert—

“3A Exclusion from section 3(4) of expenditure on assets giving rise to tax-exempt tariffing receipts

(1) This section applies where—

(a) expenditure incurred on or after 1st January 2004 falls within section 3 (1) above, but

(b) some of the use (or expected use) of the asset in relation to which the expenditure was incurred is use in a way that gives rise to tax-exempt tariffing receipts (see section 6A(2) below).

(2) In any such case, such part of the expenditure as it is just and reasonable to apportion to the use mentioned in subsection (1)(b) above shall be excluded from the expenditure which is allowable as mentioned in section 3(4) above.”.