PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
C1CHAPTER V
PETROLEUM EXTRACTION ACTIVITIES
492 Treatment of oil extraction activities etc. for tax purposes.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
493 Valuation of oil disposed of or appropriated in certain circumstances.
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
494F3Loan relationships etc.
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
494AAF18 Sale and lease-back.
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
494AF19 Computation of amount available for surrender by way of group relief.
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
495 Regional development grants.
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
496F8Tariff receipts and tax-exempt tariffing receipts
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
496AF20Exploration expenditure supplement
Schedule 19B to this Act (exploration expenditure supplement) shall have effect.
496BF21Ring fence expenditure supplement
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
497 Restriction on setting ACT against income from oil extraction activities etc.
F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
498 Limited right to carry back surrendered ACT.
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
499 Surrender of ACT where oil extraction company etc. owned by a consortium.
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
500 Deduction of PRT in computing income for corporation tax purposes.
1
Where a participator in an oil field has paid any petroleum revenue tax with which he was chargeable for a chargeable period, then, in computing for corporation tax the amount of his income arising in the relevant accounting period from oil extraction activities or oil rights, there shall be deducted an amount equal to that petroleum revenue tax.
2
There shall be made all such adjustments of assessments to corporation tax as are required in order to give effect to subsection (1) above.
3
For the purposes of subsection (1) above, the relevant accounting period, in relation to any petroleum revenue tax paid by a company, is—
a
the accounting period of the company in or at the end of which the chargeable period for which that tax was charged ends; or
F27b
if that chargeable period ends after the accounting period of the company in or at the end of which the company—
i
ceases to carry on the trade giving rise to the income referred to above, or
ii
ceases to be within the charge to corporation tax in respect of that trade,
that accounting period.
4
F24Subject to the following provisions of this section if some or all of the petroleum revenue tax in respect of which a deduction has been made under subsection (1) above is subsequently repaid, that deduction shall be reduced or extinguished accordingly; and any additional assessment to corporation tax required in order to give effect to this subsection may be made at any time not later than F294 years after the end of the F25calendar year in which the first-mentioned tax was repaid.
F265
If, in a case where paragraph 17 of Schedule 2 to the 1975 Act applies, an amount of petroleum revenue tax in respect of which a deduction has been made under subsection (1) above is repaid by virtue of an assessment under that Schedule or an amendment of such an assessment, then, so far as concerns so much of that repayment as constitutes the appropriate repayment,—
a
subsection (4) above shall not apply; and
b
the following provisions of this section shall apply in relation to the company which is entitled to the repayment.
6
In subsection (5) above and the following provisions of this section—
a
“the appropriate repayment” has the meaning assigned by sub-paragraph (2) of paragraph 17 of Schedule 2 to the 1975 Act;
b
in relation to the appropriate repayment, a “carried back loss” means an allowable loss which falls within sub-paragraph (1)(a) of that paragraph and which (alone or together with one or more other carried back losses) gives rise to the appropriate repayment;
c
in relation to a carried back loss, “the operative chargeable period” means the chargeable period in which the loss accrued; and
d
in relation to the company which is entitled to the appropriate repayment, “the relevant accounting period”F28means—
i
the accounting period in or at the end of which ends the operative chargeable period, or
ii
if the company ceases to carry on its ring fence trade (or to be within the charge to corporation tax in respect of that trade) before the end of the operative chargeable period, the last accounting period of that trade (or, as the case requires, the accounting period during or at the end of which the company ceased to be within the charge to corporation tax in respect of that trade).
7
In computing for corporation tax the amount of the company’s income arising in the relevant accounting period from oil extraction activities or oil rights there shall be added an amount equal to the appropriate repayment; but this subsection has effect subject to subsection (8) below in any case where—
a
two or more carried back losses give rise to the appropriate repayment; and
b
the operative chargeable period in relation to each of the carried back losses is not the same; and
c
if subsection (6)(d) above were applied separately in relation to each of the carried back losses there would be more than one relevant accounting period.
8
Where paragraphs (a) to (c) of subsection (7) above apply, the appropriate repayment shall be treated as apportioned between each of the relevant accounting periods referred to in paragraph (c) of that subsection in such manner as to secure that the amount added by virtue of that subsection in relation to each of those relevant accounting periods is what it would have been if—
a
relief for each of the carried back losses for which there is a different operative chargeable period had been given by a separate assessment or amendment of an assessment under Schedule 2 to the 1975 Act; and
b
relief for a carried back loss accruing in an earlier chargeable period had been so given before relief for a carried back loss accruing in a later chargeable period.
9
Any additional assessment to corporation tax required in order to give effect to the addition of an amount by virtue of subsection (7) above may be made at any time not later than F294 years after the end of the calendar year in which is made the repayment of petroleum revenue tax comprising the appropriate repayment.
10
In this section “allowable loss” and “chargeable period” have the same meaning as in Part I of the 1975 Act and “calendar year” means a period of twelve months beginning on 1st January.
501 Interest on repayment of PRT.
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
501AF22 Supplementary charge in respect of ring fence trades
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
501BF23 Assessment, recovery and postponement of supplementary charge
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
502 Interpretation of Chapter V.
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt. 12 Ch. 5 modified (27.7.1999) by Finance Act 1999 (c. 16), s. 98