Commentary

B3.413 Oil licences etc

Business tax
Business tax | Commentary

B3.413 Oil licences etc

Business tax | Commentary

B3.413 Oil licences etc

A restriction applies where a person carrying on a mineral extraction trade (the buyer) incurs expenditure on the acquisition of a licence or an interest in a licence under the Petroleum Act 1998 or the Petroleum (Production) (Northern Ireland) Act 1964. The licence in question is one authorising the winning of oil1.

The buyer's qualifying expenditure is restricted to the amount paid to the 'relevant authority' for the purpose of obtaining the licence by the person to whom the licence was granted or, in the case of an interest in a licence, a just and reasonable proportion

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