Finance Act 1987

Transactions which may be nominated

2 (1) The proposed transactions which may be nominated by a participator in an oil field for the purposes of this Schedule are—

(a) proposed sales at arm's length by the participator of specified quantities of oil for delivery from that oil field; and

(b) proposed supplies by the participator (being a company) to another company which is associated with the participator of specified quantities of oil for delivery from that oil field for use for refining either by that other company or by a third company associated with the participator; and

(c) proposed relevant appropriations by the participator of specified quantities of oil won from that field; and

(d) any other proposed transactions specified for the purposes of this sub-paragraph by Treasury regulations;

and two companies are associated with each other for the purposes of paragraph (b) above if they would be so associated for the purposes of section 115(2) of the [1984 c. 43.] Finance Act 1984.

(2) Where a proposed sale is nominated before a contract of sale comes into being, any reference in this Schedule to the contract of sale is a reference to the subsequent contract for the sale of oil in accordance with the terms of the nomination; and, accordingly, if no such contract of sale comes into being, the nomination of the proposed sale shall be of no effect.

(3) A participator may not nominate a proposed sale if—

(a) under the terms of the contract of sale as originally entered into, the party undertaking to sell the oil is someone other than the participator; or

(b) it is of a description prescribed for the purposes of this sub-paragraph by regulations made by the Board.