The Advance Petroleum Revenue Tax Act 1986 (c. 68) is an Act of the

Parliament of the United Kingdom The Parliament of the United Kingdom is the supreme legislative body of the United Kingdom, the Crown Dependencies and the British Overseas Territories. It meets at the Palace of Westminster, London. It alone possesses legislative suprema ...

which provided for the repayment of advance petroleum revenue tax (APRT) to a participator in an oil field where the net profit period has not been reached.

Background

The Advance Petroleum Revenue Tax Act implemented the proposal announced by the

Chancellor of the Exchequer The chancellor of the Exchequer, often abbreviated to chancellor, is a senior minister of the Crown within the Government of the United Kingdom, and head of His Majesty's Treasury. As one of the four Great Offices of State, the Chancellor is ...

in the Autumn Statement to accelerate, on a targeted basis, the arrangements for the repayment of advance petroleum revenue tax due to oil companies. Text was copied from this source, which is licensed under th
Open Parliament Licence v3.0
© Parliamentary Copyright. The fall in world

oil prices The price of oil, or the oil price, generally refers to the spot price of a barrel () of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Refe ...

in 1986 had a serious impact on the economics of

North Sea The North Sea lies between Great Britain, Norway, Denmark, Germany, the Netherlands and Belgium. An epeiric sea on the European continental shelf, it connects to the Atlantic Ocean through the English Channel in the south and the Norwegian S ...

development, resulting in cutbacks in activity. Companies involved in North Sea activity had reassessed their plans to take low oil prices into account, but some of them faced the more immediate problems caused by a shortage of the cash available to go ahead with new and existing developments. The Act was aimed at alleviating companies' cash flow problems. It concentrated its effects on those companies where the reduction in cash flow from their North Sea operations could act as a real constraint on their ability to go ahead with development work. It also recognised the importance of providing finance for the companies as soon as possible in order to avoid any interruption to development activity by cash flow difficulties. Under the provisions of the APRT Act, 75 per cent—that is, £230 million—of the total repayments went to independent, medium-sized and smaller companies. Repayments were subject to a limit of £15 million per company per field and, in all, the APRT Act increased the amount of cash available for investment in the North Sea by around £300 million.

Advance Petroleum Revenue Tax Act 1986

The Advance Petroleum Revenue Tax Act 1986 (chapter 68) received Royal Assent on 18 December 1986. Its long title is ‘An Act to provide for the repayment of certain amounts of advance petroleum revenue tax'.

Provisions

The Act comprises two Sections and a Schedule: * Section 1. Repayment of APRT where net profit period not yet reached. * Section 2. Short title and construction * Schedule. Net Profit period

References

{{Authority control United Kingdom Acts of Parliament 1986 History of the petroleum industry in the United Kingdom

Background

Advance Petroleum Revenue Tax Act 1986

Provisions

See also

References