SCHEDULES

SCHEDULE 15Oil activities: transferable tax history

PART 2The total TTH amount

10The “uplifted decommissioning costs estimate”

1

A “decommissioning security agreement” is an agreement entered into for the purpose of—

a

determining the costs of decommissioning an oil field, and

b

providing security for—

i

the performance of obligations under an abandonment programme for the purposes of section 38A of the Petroleum Act 1998 (whether or not such a programme has been approved at the time the agreement is entered into), or

ii

the costs of decommissioning plant or machinery which is, or forms part of, a relevant onshore installation.

2

A decommissioning security agreement is “qualifying” for the purposes of this Schedule if—

a

the seller is a party to the agreement,

b

at least one of the parties is not associated with the seller, and

c

the estimate approved for the purposes of the agreement is a reasonable estimate of the decommissioning costs for the oil field.

3

In a case where the corporate restructuring condition (see paragraph 56(2)) is met, sub-paragraph (2)(a) has effect as if the reference to the seller were a reference to a party to the third party election (as defined in that paragraph).

4

In sub-paragraph (1)—

  • “abandonment programme” has the meaning given by section 29 of the Petroleum Act 1998, and

  • “relevant onshore installation” has the same meaning as in section 163 of CAA 2001 (see subsection (3C) of that section).

5

See paragraph 98 of this Schedule and section 271 of CTA 2010 for further provision about the meaning of “associated companies”.