Part V Oil Taxation

Chapter II Miscellaneous

235 Valuation of oil.

1

With respect to chargeable periods ending after 31st December 1993, subsection (5A) of section 2 of the M1Oil Taxation Act 1975 (special rules for valuation of oil consisting of gas which is disposed of in a sale at arm’s length on terms including transportation costs etc.) shall be amended as follows—

a

for the words “oil consisting of gas” there shall be substituted “ oil ”;

b

for the word “gas”, in each place where it subsequently occurs, there shall be substituted “ oil ”;

c

for the words “for delivery at a place” there shall be substituted “ or another country for delivery at another place in or ”; and

F1d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

In Schedule 10 to the M2Finance Act 1987 (nomination scheme for disposals and appropriations of oil), in paragraph 4 (timing of nominations)—

a

in sub-paragraph (1) for the words “sub-paragraph (2)” there shall be substituted “ sub-paragraphs (2) and (2A) ”; and

b

after sub-paragraph (2) there shall be inserted—

2A

Where the proposed transaction has a transaction base date later than 31st December 1993, sub-paragraph (1) above has effect with the substitution for the reference to the second business day of a reference to the first business day.

4

In paragraph 11 of that Schedule (a participator’s aggregate nominated proceeds for a month), in sub-paragraph (2) for the words “sub-paragraph (2A)” there shall be substituted “ sub-paragraphs (2A) and (2B) ” and after sub-paragraph (2A) there shall be inserted the following sub-paragraph—

2B

In the case of a nominated transaction which is a disposal to which subsection (5A) of section 2 of the principal Act applies, for the amount which, apart from this sub-paragraph, would be the nominated price for the purposes of sub-paragraph (2) above there shall be substituted the amount which, under that subsection, is deemed to be the price received or receivable for the oil in question.