Introduction Details of the Section
2.Subsection (1) provides that sums due under a decommissioning relief agreement shall be paid out of money provided by Parliament.
3.Subsection (2) defines a “decommissioning relief agreement” as an agreement between a Minister of the Crown and a qualifying company.
4.Subsection (3) defines a “qualifying company” for the purposes of a subsection (2).
5.Subsection (4) provides that for the purposes of subsection (2) the amount of tax relief in respect of decommissioning expenditure is to be determined in accordance with the decommissioning relief agreement, and may in some circumstances, which will be specified in the decommissioning relief agreement include tax relief in respect of expenditure that is not decommissioning expenditure.
6.Subsection (5) provides that a payment made under a decommissioning relief agreement is not to be regarded as income or a gain for the company for any purpose of the Tax Acts.
7.Subsection (6) provides that Section 18 (1) of the Commissioners for Revenue and Customs Act 2005, which restricts disclosure by Revenue and Customs officials, does not prevent disclosure of information to:
8.Subsection (7) provides definitions , for the purposes of this section, for “company”, “cross-boundary field”, “decommissioning expenditure”, Minister of the Crown”, which includes HM Treasury, “ring fence trade”, the UK sector of a cross-boundary field” and “unitisation agreement”.
9.Subsection (8) provides that subsections (8) to (9) of section 30 of the Petroleum Act 1998, which define associated entity, apply for the purposes of subsection (1) of this section.