½Û×ÓÊÓƵ

Division D7.9ÌýÌýÌýÌý Oil extraction, related activities and electricity generation

Revised by
PHILIP REID

Partner, CMS Cameron McKenna Nabarro Olswang LLP

For updates affecting this Division please see Part D0 Updates

Oil extraction—introduction

D7.901 Oil extraction and related activities—overview

[For additional key resources on this topic see 'Oil extraction—related content' below.]

The normal UK tax rules apply to the oil industry with certain modifications. These modifications introduce the concept of a ring fence trade. The trades comprising oil extraction activities, or the acquisition, enjoyment or exploitation of oil rights in the UK, its territorial waters or any designated area of the UK continental shelf are treated for all purposes of income and corporation tax, as a separate trade (the ring fence trade), distinct from all other activities carried on by that person as part of the trade. This