Section 356LA | “Relevant asset” ^F1

(1)In this Part “relevant asset” means an asset within subsection (2) in respect of which conditions A and B are met.^F1

(2)An asset is within this subsection if it is a structure that—^F1

(a)can be moved from place to place (whether or not under its own power) without major dismantling or modification, and^F1

(b)can be used to—^F1

(i)drill for the purposes of searching for, or extracting, oil, or^F1

(ii)provide accommodation for individuals who work on or from another structure used in a relevant offshore area for, or in connection with, exploration or exploitation activities (“offshore workers”).^F1

(3)But an asset is not within subsection (2)(b)(ii) if it is reasonable to suppose that its use to provide accommodation for offshore workers is unlikely to be more than incidental to another use, or other uses, to which the asset is likely to be put.^F1

(4)In subsection (2)—^F1

“oil” means any substance capable of being won under the authority of a licence granted under Part 1 of the Petroleum Act 1998 or the Petroleum (Production) Act (Northern Ireland) 1964;

“structure” includes a ship or other vessel.

(5)Condition A is that the asset, or any part of the asset, is leased (whether by the contractor or not) from an associated person other than the contractor.^F1

(6)Condition B is that the asset is of the requisite value.^F1

(7)The asset is of the “requisite value” if its market value is £2,000,000 or more.^F1

(8)The Treasury may by regulations modify the meaning of “requisite value”.^F1

(9)Regulations under subsection (8) may—^F1

(a)amend this section,^F1

(b)make different provision for different cases or different purposes, and^F1

(c)make incidental, consequential, supplementary or transitional provision or savings.^F1