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D7.928 Disposals of interests in oil fields etc

Capital gains arising on the disposal of an interest in oil to be won from an oil field or from the disposal of an asset used in connection with that field must be separated or 'ring fenced' from other disposals¹.

Chargeable gains arising on deemed disposals under TCGA 1992, s 179(3) (group acquisitions within a six-year period before leaving a group of companies) are also ring fenced, where the chargeable company acquired the asset on the disposal of an interest in an oil field or on the disposal of an asset used in connection with that field².

These provisions only apply where the disposals or deemed disposals arise in pursuance of the transfer by a participator³ of the whole or part of his interest in an oil field⁴. For these purposes, an oil field is a determined field as defined for the purpose of petroleum revenue tax⁵.

Ring fence gains and losses arising in a chargeable period