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[F1PART 7AU.K.Holders of licences under the Petroleum Act 1998

Textual Amendments

F1Pt. 7A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 7 para. 2 (with Sch. 9 paras. 1-9, 22)

Licence-holders' liabilities for tax assessed on non-UK residentsU.K.

77BPre-conditions for serving secondary-liability noticeU.K.

(1)Conditions A to E are the pre-conditions for the purposes of section 77C.

(2)Condition A is that tax is assessed on a person not resident in the United Kingdom.

(3)Condition B is that the tax is assessed in reliance on—

(a)section 276 of the 1992 Act,

(b)section 874 of ITTOIA 2005, or

(c)section 1313 of CTA 2009.

(4)Condition C is that the tax assessed is not tax under ITEPA 2003.

(5)Condition D is that—

(a)there is a licence to which the tax assessed is related (see section 77J for the meaning of tax related to a licence),

(b)there is more than one licence to which the tax assessed is related, or

(c)there is a licence, or more than one licence, to which part of the tax assessed is related but in addition part of the tax assessed is not related to any licence.

(6)Condition E is that the tax is not paid in full within 30 days after it becomes due and payable.

(7)In this Part “licence” means a licence under Part 1 of the Petroleum Act 1998.

77CSecondary-liability noticesU.K.

(1)If each of the pre-conditions (see section 77B) is met, an officer of Revenue and Customs may serve on the holder of the licence concerned, or on the holder of any of the licences concerned, a notice—

(a)that states particulars of the assessment,

(b)that states the amount remaining unpaid and the date when it became payable,

(c)that requires the holder to pay, within 30 days of the service of the notice, the amount for which the holder is liable, and

(d)that, if the amount for which the holder is liable is given by subsection (3) or section 77G(7), gives particulars of how the amount was determined.

(2)For the purposes of subsection (1), the amount for which the holder is liable is the amount remaining unpaid, together with any interest on it under sections 86 and 87A, but this is subject to subsection (3) and section 77G(7).

(3)In a case within section 77B(5)(b) or (c), the amount for which the holder of the licence is liable is given by—

(4)In subsection (3)—

(5)The power under subsection (1) is subject to section 77E (certain pre-1974 cases).

(6)In this Part “secondary-liability notice” means a notice under subsection (1).

77DPayments under secondary-liability noticesU.K.

(1)Any amount which a person is required to pay by a secondary-liability notice may be recovered from the person as if it were tax due and duly demanded from the person.

(2)If a person (“H”) pays any amount which a secondary-liability notice requires H to pay, H may recover the amount from the person on whom the assessment concerned was made.

(3)A payment in pursuance of a secondary-liability notice is not allowed as a deduction in calculating any income, profits or losses for any tax purposes.

77EException for certain pre-1974 casesU.K.

(1)Section 77C(1) does not give power to serve a secondary-liability notice on the holder of a licence if the profits arose, or the chargeable gains accrued, to the assessed person in consequence of a contract made by the holder before 23 March 1973.

(2)The exception under subsection (1) does not apply if—

(a)the assessed person is connected with the holder, or

(b)the contract was substantially varied on or after 23 March 1973.

(3)For the purposes of subsection (2), whether a person is connected with another is determined in accordance with section 1122 of CTA 2010.]