§ Mr. Viggersasked the Chancellor of the Exchequer if he will set out the basis upon which abandonment costs of offshore oil rigs and platforms will be treated for tax purposes.
§ Mr. Wakeham[pursuant to the reply, 22 November 1982, c. 353]: The costs of closing down all or part of an oil or gas field are deductible for petroleum revenue tax purposes to the extent that they are incurred for the 490W purposes of safety or the prevention of pollution. For income and corporation tax purposes, abandonment costs of offshore installations can generally be expected to be deductible as demolition costs qualifying for a balancing allowance.