SE67105 – Tax treatment of workers in the North Sea and other offshore oil and gas fields - territorial extension of the charge to Income Tax

Section 830 ICTA 1988

For all Income Tax purposes, United Kingdom territorial waters, that is, waters within twelve nautical miles of the shore, are treated as being part of the United Kingdom. So emoluments for duties performed in territorial waters are classed as emoluments for duties performed in the United Kingdom.

Exploration or exploitation activities in the designated area

For Schedule E purposes only, Section 830(5) makes a further extension. It provides that emoluments in respect of duties performed in a United Kingdom designated area of the Continental Shelf IN CONNECTION WITH OIL OR GAS EXPLORATION OR EXPLOITATION ACTIVITIES shall be treated as emoluments in respect of duties performed in the United Kingdom.

For the meaning of 'exploration and exploitation activities' and 'designated area', see SE67115 and SE67120.