Section 6A | Tax-exempt tariffing receipts ^F1F2

(1)An amount which is a tax-exempt tariffing receipt (see subsection (2) below) does not constitute a tariff receipt for the purposes of the Oil Taxation Acts.^F1

(2)An amount is a “ tax-exempt tariffing receipt ” for the purposes of the Oil Taxation Acts if—^F1

(a)it would, apart from this section, be a tariff receipt of a participator in an oil field,^F1

(b)it is received or receivable by the participator in a chargeable period ending on or after 30th June 2004 under a contract entered into on or after 9th April 2003, and^F1

(c)it is in respect of tax-exempt business (see subsection (3) below).^F1

(3)For the purposes of this section an amount is in respect of tax-exempt business if it is an amount received or receivable by a participator in an oil field in respect of—^F1

(a)the use of a qualifying asset, or^F1

(b)the provision of services or other business facilities of whatever kind in connection with the use, otherwise than by the participator himself, of a qualifying asset,^F1

and that use of the qualifying asset falls within subsection (4) below.

(4)Use of a qualifying asset falls within this subsection if it is—^F1

(a)use in relation to a new field (see subsection (5) below) or oil won from such a field, or^F1

(b)use in relation to a qualifying existing field (see subsection (5) below) or oil won from such a field, or^F1F3

(c)use in relation to a UK recommissioned field (see subsection (5) below) or oil won from such a field.^F1F3

(5)In this section—^F1

(6)For the purposes of this section, in the case of an oil field which, by virtue of section 107 of the Finance Act 1980 (transmedian fields), is deemed to include the sector mentioned in subsection (1)(a)(ii) of that section—^F1

(a)that sector shall be treated as a foreign field, and^F1

(b)the remainder of that field shall be treated as a separate oil field.^F1

(7)In the application of provisions of the Oil Taxation Acts relating to tax-exempt tariffing receipts, references to oil, in relation to a foreign field, are references to any substance that would be oil within the meaning of the principal Act if the enactments mentioned in section 1(1) of that Act extended to the foreign field.^F1

(8)This section is subject to the transitional provisions in Part 2 of Schedule 37 to the Finance Act 2004 (expenditure incurred between 9th April and 31st December 2003: treatment of initial portion of tax-exempt tariffing receipts as tariff receipts).^F1