searching for oil anywhere within the area of the field as subsequently determined under Schedule 1 to this Act or not more than 5,000 metres beyond the boundary of that area;

making to the F2OGA any payment under or for the purpose of obtaining a relevant licence, not being a payment by way of royalty or other periodic payment;

ascertaining (whether before or after the determination of the field under Schedule 1 to this Act) the extent or characteristics of any oil-bearing area wholly or partly included in the field, or what the reserves of oil of any such oil-bearing area are;

winning oil from the field;

measuring the quantity of oil won or to be won from the field;

the initial treatment or initial storage of oil won from the field;

disposing of any oil won from the field which is disposed of crude in sales at arm’s length;

obtaining an abandonment guarantee, as defined in section 104 of the Finance Act 1991

restoring (including landscaping) land on which a qualifying asset is or was situated; or

restoring the seabed (including the subsoil thereof) on which a qualifying asset is or was situated.

any expenditure incurred by a participator in a taxable field would, apart from this subsection, be allowable for the field under subsection (1)(i) or (j) above, and

the qualifying asset that is relevant to the incurring of that expenditure has at some time been used otherwise than F10for a qualifying purpose,

use in connection with the taxable field mentioned in subsection (1C), and

use in connection with an oil field other than the taxable field mentioned in subsection (1C), and

use for any other purpose (apart from a purpose falling within section 3(1)(b)) of a separate trade consisting of activities falling within F13the definition of “oil-related activities” in section 274 of CTA 2010.

expenditure in respect of interest or any other pecuniary obligation incurred in obtaining a loan or any other form of credit; or

the cost of acquiring any land or interest in land, other than the cost of making to the F2OGA any payment falling within subsection (1)(b) above; or

any expenditure wholly or partly depending on or determined by reference to the quantity, value or proceeds of, or the profits from, oil won from the field; . . . F27

any payment made for the purpose of obtaining a direct or indirect interest in oil won or to be won from the field, other than a payment made to the F2OGA ; F28or

any payment made in pursuance of a notice under section 77C of the Taxes Management Act 1970 (notice requiring licence-holder to pay unpaid tax assessed on non-UK resident);

bringing about the commencement of the winning of oil from the field or the commencement of the transporting of oil won from it to the United Kingdom F30or another country;

ascertaining (whether before or after the determination of the field under Schedule 1 to the Act) any of the matters mentioned in subsection (1)(c) above;

carrying out works for, or acquiring an asset or an interest in an asset to be used for the purpose of, substantially improving the rate at which oil can be won or transported to the United Kingdom F30or another country from the field, or preventing or substantially reducing a decline in that rate; or

providing any installation for the initial treatment or initial storage of oil won from the field;

in part for one of the purposes specified in subsection (5) above (or for what would be one of those purposes if section 10(2) below were disregarded), and

in part for the purpose of enabling the asset to be used in a way giving rise to tariff receipts within the meaning of the Oil Taxation Act 1983,

it consists of fees, commission or incidental costs incurred wholly and exclusively for the purposes of obtaining an abandonment guarantee; and

the abandonment guarantee is obtained in order to comply with a term of a relevant agreement relating to that field under which the participator is required to provide security (whether or not specifically in the form of an abandonment guarantee) in respect of his liabilities to contribute to field abandonment costs;

oil first landed in the United Kingdom to a place in the United Kingdom which is not the nearest place referred to in sub-paragraph (ii) of that paragraph, or

oil first landed in another country to a place in that or any other country (other than the United Kingdom) which is not the nearest place so referred to, so much of that expenditure as does not exceed what would have been the expenditure incurred in transporting it to that nearest place shall be regarded as falling within the said paragraph (f).

expenditure which is incurred by any person as mentioned in subsection (6) above is so incurred in connection with a long-term asset, and

the long-term asset gives rise to receipts which, for the purposes of the Oil Taxation Act 1983, are tariff receipts of that person attributable to the field for which any of that expenditure is so allowable,

“long-term asset” means an asset whose useful life continues after the end of the claim period for which a claim is first made for an allowance in respect of expenditure incurred in connection with the asset; and

“relevant expenditure” means that portion of the expenditure in connection with the asset which is reasonably attributable to the use of the asset which gives rise to the receipts referred to in subsection (7)(b) above.