PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
C1CHAPTER V
C2 PETROLEUM EXTRACTION ACTIVITIES
Pt. 12 Ch. 5 applied (29.4.1996) by Finance Act 1996 (c. 8), Sch. 8 para. 1(4)
496 Tariff receipts.
1
Any sum which—
a
constitutes a tariff receipt of a person who is a participator in an oil field, and
b
constitutes consideration in the nature of income rather than capital, and
c
would not, apart from this subsection, be treated for the purposes of this Chapter as a receipt of the separate trade referred to in section 492(1),
shall be so treated for those purposes.
2
To the extent that they would not otherwise be so treated, the activities of a participator in an oil field or a person connected with him in making available an asset in a way which gives rise to tariff receipts of the participator shall be treated for the purposes of this Chapter as oil extraction activities.
3
In determining for the purposes of subsection (1) above whether any sum constitutes a tariff receipt of a person who is a participator, no account shall be taken of any sum which—
a
is in fact received or receivable by a person connected with the participator, and
b
constitutes a tariff receipt of the participator,
but in relation to the person by whom such a sum is actually received, subsection (1) above shall have effect as if he were a participator and as if the condition in paragraph (a) of that subsection were fulfilled.
4
References in this section to a person connected with a participator include references to a person with whom the person is associated within the meaning of paragraph 11 of Schedule 2 to M1the Oil Taxation Act 1983.
Pt. 12 Ch. 5 modified (27.7.1999) by Finance Act 1999 (c. 16), s. 98