Introduction The Oil Taxation Act (OTA) 1975
2.Paragraph 1 removes the provision for allowing a participator to spread “supplemented” expenditure giving relief for up to 20 chargeable periods and the provision for allowing companies to claim certain expenditure incurred before the introduction of PRT.
3.Sub-paragraphs (2) and (3) amend Schedule 3 to OTA 1975 by omitting paragraphs 9 and 10 which allow participators to spread the relief they get for certain costs (supplemented expenditure) over a number of chargeable periods.
4.Sub-paragraph (4) amends Schedule 4 to OTA 1975 by omitting paragraph 3. This provision allowed companies to claim certain expenditure incurred before the introduction of PRT. Since such expenditure is subject to a six year time limit the legislation is no longer required.