Finance Act, 1995

Amendment of Chapter VI (Petroleum Taxation) of Part I of Finance Act, 1992.

42.—Chapter VI of Part I of the Finance Act, 1992 , is hereby amended—

(a) in subsection (1) of section 75—

(i) in the definition of “development expenditure”—

(I) by the substitution for paragraph (c) of the following:

“(c) any other assets,”,

(II) by the substitution for “but does not include” of “which are of such a nature that, when the relevant field ceases to be worked, they are likely to be so diminished in value that their value will be little or nothing, but does not include”, and

(III) by the substitution for paragraph (vi) of the following:

“(vi) expenditure on—

(I) machinery or plant, or

(II) works, buildings or structures,

which are provided for the processing or storing of petroleum won in the course of carrying on petroleum extraction activities, other than the initial treatment and storage of such petroleum,



(ii) in the definition of “licence”, by the insertion after paragraph (a) of the following paragraphs:

“(aa) a lease undertaking,

(aaa) a licensing option,”,


(b) in subsection (1) of section 77 by the addition of the following proviso to the definition of “relevant petroleum lease”:

“Provided that a petroleum lease in respect of a relevant field shall be a relevant petroleum lease where—

(i) the field was discovered under a lease which is not a licence,

(ii) the lease under which the field was discovered expired before the petroleum lease is granted, and

(iii) the petroleum lease is granted by the Minister for Transport, Energy and Communications before the 1st day of June, 2003.”.