OT63020 | Transferable tax history - Effect of a TTH election on the buyer - Permanent Cessation of the winning of oil

In order to set a loss against transferred profits, production from the relevant TTH oil field must have permanently ceased.

Where there is any doubt as to whether permanent cessation has occurred, you should ask the NSTA to confirm the date of permanent cessation. The NSTA will normally aim to do this within 30 days.

When seeking confirmation from the NSTA, you should provide:

• the name of the company in question

• the name of the field

• the date on which the company claims production has ceased

• confirmation that you are requesting this information for the purposes of checking a TTH claim.

NB: there is no requirement for all wells to have been permanently abandoned in order for production to have permanently ceased.