OT30043 - Capital Gains

Undeveloped Areas. Definition of Licence and Foreign Oil Concession.

Until 13 September 1995 TCGA92\s196(5) applied the definition of "licence" for PRT purposes (at OTA75\s12(1)) to TCGA92\s194, so that only UK/UKCS licences were included. FA96\s181 amends the definition of licence in TGCA92\s196(1) and TGCA92\s196(5) so as to extend the application of TCGA92\s194 to overseas licences for disposals on or after 13 September 1995. Licence becomes "any UK licence or foreign oil concession".

A "UK licence" is a licence within Part I OTA 1975 (i.e. OTA75\s12(1)) and TCGA92\s196(1) defines an undeveloped area in relation to such a licence.

A "foreign oil concession" is "any right to search for or win overseas petroleum, being a right conferred or exercisable (whether or not by virtue of a licence) in relation to a particular area". A new TGCA92\s196(1A) defines undeveloped area in relation to "a licence other than a UK licence" (i.e. a foreign oil concession).

TGCA92\s196(5) as amended by FA 1996 defines "oil", "overseas petroleum", "interest", "licensee" and "licensed area" for both UK and overseas licences.