Introduction Details of Schedule Allowance of decommissioning and restoration expenditure
2.Paragraph 1 amends sections 3(1C) and 3(1D) of the Oil Taxation Act (OTA) 1975. These sections provide that, where a qualifying asset has been used for a purpose other than in connection with the field in which the costs have been allowed, then any decommissioning costs in connection with that asset will be restricted by reference to the use made of the asset. This paragraph lifts this restriction if the non-field use is for a qualifying purpose which includes a use otherwise than in connection with that field, if the use occurs in the UK or (UKCS) and is not used wholly or partly for an oil purpose.