PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

C1CHAPTER V

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Modifications etc. (not altering text)
C1

Pt. 12 Ch. 5 modified (27.7.1999) by Finance Act 1999 (c. 16), s. 98

C2 PETROLEUM EXTRACTION ACTIVITIES

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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.