The Advance Petroleum Revenue Tax Act 1986 (c. 68) is an Act of the Parliament of the United Kingdom 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.
The Advance Petroleum Revenue Tax Act implemented the proposal announced by the Chancellor of the Exchequer in the Autumn Statement to accelerate, on a targeted basis, the arrangements for the repayment of advance petroleum revenue tax due to oil companies.[1]
The fall in world oil prices in 1986 had a serious impact on the economics of North Sea 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.[1]
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.[1]
Advance Petroleum Revenue Tax Act 1986edit
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'.[2]
advance, petroleum, revenue, 1986, parliament, united, kingdom, which, provided, repayment, advance, petroleum, revenue, aprt, participator, field, where, profit, period, been, reached, parliamentparliament, united, kingdomlong, titlean, provide, repayment, ce. The Advance Petroleum Revenue Tax Act 1986 c 68 is an Act of the Parliament of the United Kingdom 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 Advance Petroleum Revenue Tax Act 1986Act of ParliamentParliament of the United KingdomLong titleAn Act to provide for the repayment of certain amounts of advance petroleum revenue tax Citation1996 c 68Introduced byLord Beaverbrook 6 December 1986 Second Reading Lords Territorial extent United KingdomDatesRoyal assent18 December 1986Commencement18 December 1986Status Current legislation Contents 1 Background 2 Advance Petroleum Revenue Tax Act 1986 2 1 Provisions 3 See also 4 ReferencesBackground editThe Advance Petroleum Revenue Tax Act implemented the proposal announced by the Chancellor of the Exchequer in the Autumn Statement to accelerate on a targeted basis the arrangements for the repayment of advance petroleum revenue tax due to oil companies 1 The fall in world oil prices in 1986 had a serious impact on the economics of North Sea 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 1 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 1 Advance Petroleum Revenue Tax Act 1986 editThe 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 2 Provisions edit The Act comprises two Sections and a Schedule 2 Section 1 Repayment of APRT where net profit period not yet reached Section 2 Short title and construction Schedule Net Profit periodSee also editOil and gas industry in the United Kingdom North Sea Oil Petroleum ActReferences edit a b c Hansard Advance Petroleum Revenue Tax Bill Hansard 16 December 1986 Retrieved 13 November 2020 Text was copied from this source which is licensed under the Open Parliament Licence v3 0 c Parliamentary Copyright a b Advance Petroleum Revenue Tax Act 1986 legislation gov uk Retrieved 13 November 2020 Retrieved from https en wikipedia org w index php title Advance Petroleum Revenue Tax Act 1986 amp oldid 1177293246, wikipedia, wiki, book, books, library,
