SCHEDULES
SCHEDULE 5Transitional Provisions
Interpretation
1
1
In this Schedule—
" existing expenditure " means expenditure to which, in accordance with section 13 of this Act, this Schedule applies ;
" the existing asset" means the asset which was acquired or brought into existence, or the value of which was enhanced as a result of the incurring of the existing expenditure ;
" the purchaser ", in relation to any existing expenditure, means the person referred to in section 13(1) of this Act as the person incurring the expenditure ;
" tariff receipts " has the same meaning in relation to consideration received or receivable on or before 30th June 1982 as it has in relation to consideration received or receivable after that date;
"transitional claim period" means, subject to sub-paragraphs (2) and (3) below, the claim period ending on 30th June 1982.
2
If, in the case of an oil field.—
a
there is such a claim period as is mentioned in subsection (1)(b) of section 13 of this Act, and
b
no election is made under subsection (2) of that section with respect to that claim period,
then that claim period is the transitional claim period for the field for the purposes of this Schedule.
3
In the case of an oil field—
a
from which all the oil won is excluded oil, as defined in section 10(1) of the principal Act (exempt gas), and
b
with respect to which no election under paragraph 1(1) of Schedule 5 to the principal Act has been made before the passing of this Act,
there shall be deemed to be a claim period of twelve months ending on 30th June 1982 and, accordingly, that period is the transitional claim period for the field for the purposes of this Schedule.
4
For the purposes of this Schedule, tariff receipts received or receivable before 1st July 1982 shall be treated as attributable to the field to which they would be attributable if they had been received or receivable on or after that date, and " chargeable field " shall be construed accordingly.
Review for transitional claim period
2
Section 4 of the principal Act shall have effect with respect to the transitional claim period as if—
a
at the end of subsection (2) there were added the words " and Schedule 5 to the Oil Taxation Act 1983 ";
b
in subsection (4), for the words " subsections (5) and (6)", there were substituted the words " subsection (5) ";
c
in subsection (5), for the words from " that proportion is " to " can be made " there were substituted the words " that proportion is, upon the making of the best estimate reasonably practicable at the end of the period " ; and paragraph (b) were omitted;
d
subsection (6) were omitted ;
e
in subsection (7) for the words " subsections (5) and (6)" there were substituted the words " subsection (5) ";
f
in subsection (11) for the words from "subsections (5)" to " apply " there were substituted the words " subsection (5) above (including that subsection as it applies "; and
g
section 3 (5A) of the principal Act applied, for the purposes only of the said section 4, to expenditure incurred before 1st July 1982.
No further reviews after the transitional claim period
3
Section 4 of the principal Act shall not have effect with respect to any existing expenditure for claim periods ending after the transitional claim period.
Assets giving rise to tariff receipts
4
For the purposes of section 4 of the principal Act, so much of the use or expected use of the existing asset otherwise than in connection with the chargeable field as has given, or was at the end of the transitional claim period reasonably expected to give, rise to tariff receipts of the purchaser attributable to the chargeable field shall be treated, in relation to the existing expenditure, as use of the asset in connection with the chargeable field.
Re-opening past claim periods and chargeable periods
5
1
This paragraph applies in any case where—
a
a participator in an oil field has paid tax charged on the assessable profit accruing to him in a chargeable period ending not later than the passing of this Act; but
b
on the assumptions in sub-paragraph (2) below, there would have been less, or no, tax so charged.
2
For the purposes of this paragraph it shall be assumed—
a
that section 4 of the principal Act had always applied with the modifications made by paragraph 2 above; and
b
that paragraph 4 above had always been in force and had applied with respect to claim periods earlier than the transitional claim period as it applies with respect to that period ; and
c
that any claim relating to the existing expenditure (with or without other expenditure) which is or was made for the transitional claim period or any earlier claim period had been for the allowance of so much of the existing expenditure as would have been allowable on the assumptions in paragraphs (a) and (b) above.
3
If, in a case where this paragraph applies, a claim is made for the purpose, there shall be determined—
a
the maximum amount allowable in respect of the existing expenditure on any claim falling within sub-paragraph (2)(c) above, and
b
the amount by which that maximum amount exceeds so much of the existing expenditure as, if this Act had not been enacted, would have been allowable for the transitional claim period and earlier claim periods (whether or not any of that expenditure was in fact so allowed),
and it shall be assumed that the excess referred to in paragraph (b) above had been allowed at the time or, as the case may be, at the earliest time at which notice was in fact given of a decision of the Board on the claim referred to in paragraph (a) above relating to the allowance of any of the existing expenditure; and paragraph 12 of Schedule 2 to the principal Act (revision of assessments and determinations etc.) shall have effect accordingly.
4
A claim under sub-paragraph (3) above shall be made within such period, by such person and in such form and manner as the Board may require.
Expenditure on associated assets
6
1
This paragraph applies in a case where—
a
the existing asset is not a mobile asset but the existing expenditure was not or would not, apart from this paragraph, be allowable under section 4 of the principal Act by reason only that the use of the existing asset was not in connection with the oil field referred to in section 13(1) of this Act; and
b
the use of the existing asset has given, or was at the end of the transitional claim period expected to give, rise to receipts which, assuming the existing asset to be a qualifying asset, would be tariff receipts; and
c
that use of the existing asset was or was so expected to be in association with another asset used, or expected to be used, in connection with the oil field referred to in section 13(1) of this Act.
2
Where this paragraph applies.—
a
the use referred to in sub-paragraph (1)(b) above shall be treated for the purposes of section 4 of the principal Act as use in connection with the field referred to in section 13(1) of this Act; and
b
a claim for an allowance under section 4 of the principal Act in respect of the existing expenditure may be made in a claim for the transitional claim period, whether or not that is the first relevant claim period, within the meaning of that section.
3
For the purposes of paragraph (c) of sub-paragraph (1) above, an asset shall not be regarded as used in association with another asset which is, or is expected to be, used in connection with the oil field mentioned in that paragraph unless it is used in a way which constitutes use in connection with another oil field or would constitute such use but for section 10(2) of the principal Act (exempt gas).
Other claims for past expenditure
7
1
In any case where—
a
no claim has been made for any claim period earlier than the transitional claim period for the allowance under section 4 of the principal Act of the existing expenditure or any particular item of it, and
b
if such a claim had been made before the passing of this Act, the existing expenditure or, as the case may be, that item of it would not have been allowable under that section, and
c
if paragraphs 2 and 4 above had always been in force and had applied with respect to claim periods earlier than the transitional claim period, the whole or some part of the existing expenditure or, as the case may be, of that item of it would have been allowable on a claim for one of those claim periods,
an appropriate claim may be made for the transitional claim period, notwithstanding that that is not the first relevant claim period, within the meaning of section 4 of the principal Act.
2
In sub-paragraph (1) above an "appropriate claim" means a claim for the allowance under section 4 of the principal Act of so much of the existing expenditure or, as the case may be, of the item of it referred to in that sub-paragraph as would have been allowable at or before the end of the transitional claim period if, in the circumstances referred to in paragraph (c) of that sub-paragraph, a claim had been made for the claim period which, in those circumstances, would have been the first relevant claim period, within the meaning of that section.
3
This paragraph does not apply in relation to an item of the existing expenditure if, on a claim under paragraph 5 above, account is taken of that item in determining the maximum amount referred to in sub-paragraph (3)(a) of that paragraph.