»Ê¹ÚÌåÓýapp

Responsibility for the issue of licences rests with the North Sea Transition Authority. »Ê¹ÚÌåÓýapp terms under which licences have been issued in the various rounds vary substantially but essentially there have been payments under three headings. »Ê¹ÚÌåÓýapp CT consequences of the three kinds of payments are outlined as follows:

Initial Fees

»Ê¹ÚÌåÓýappse are incurred on the application for and grant of a licence and are normally small in amount, possibly only a few thousand pounds. However, certain licences have been issued under a system of competitive bidding where the payments were substantial. Initial fees are capital and eligible for MEA at a 10% rate of writing down allowance.

Annual Rental Fees

»Ê¹ÚÌåÓýappse are not large in amount and are revenue.

Royalties

»Ê¹ÚÌåÓýappse were charged at a set annual percentage of the value of production (either in cash or in kind) and were treated as revenue expenditure for fields which received development consent before 1 April 1982. »Ê¹ÚÌåÓýapp requirement to pay royalties was removed with effect from 1 January 2003.