6

If a certificate is given in accordance with paragraph 6A(1)(c) in respect of a period which includes the relevant two-week period in the case of the unit in question in sub-paragraph (1), there shall be left out of account in applying this paragraph in relation to that unit—

a

any issue of a unit which is to be held within an individual pension account, and

b

any surrender of a unit which, immediately before the surrender, was held within an individual pension account.

7

“Individual pension account” has the same meaning in sub-paragraph (6) as it has in paragraph 6A.

6AExclusion of charge in case of individual pension accounts

1

There is no charge to tax under this Part of this Schedule on the surrender of the unit if—

a

immediately before the surrender, the unit is held within an individual pension account,

b

not all the units under the unit trust scheme are so held at that time, and

c

a certificate pursuant to sub-paragraph (2) is contained in, or provided with, the relevant monthly tax return.

2

The certificate must be given by the persons making the relevant monthly tax return and must state—

a

that at all times in the period to which the return relates the trustees or managers were able to identify which of the units under the scheme were held within individual pension accounts, and

b

that at no time in that period have the trustees or managers imposed any charge on, or recovered any amount from, an IPA unit holder which included an amount directly or indirectly attributable to tax payable by the trustees under this Part of this Schedule.

3

In sub-paragraph (2), “IPA unit holder” means—

a

a person acquiring, or who has acquired, a unit under the unit trust scheme, where the unit is to be held within an individual pension account,

b

a person holding a unit under the scheme, where the unit is held within an individual pension account, or

c

a person surrendering, or who has surrendered, a unit under the scheme, where immediately before the surrender the unit is or was held within an individual pension account.

4

In this paragraph—

• “individual pension account” has the same meaning as in regulations under section 638A of the Taxes Act 1988 (as at 6th April 2001, see regulation 4 of the Personal Pension Schemes (Restriction on Discretion to Approve) (Permitted Investments) Regulations 2001 (S.I. 2001/117)) ;

• “the relevant monthly tax return”, in the case of any surrender, means the notice required by regulations under section 98 of the Finance Act 1986 (c. 41) to be given by the managers (or, failing that, the trustees) under the unit trust scheme to the Commissioners of Inland Revenue containing among other things details of all surrenders in the relevant two-week period;

• “the relevant two-week period” has the meaning given by paragraph 4(2).

5

The supplies falling within this paragraph also include supplies of children’s car seats.

7Interpretation of paragraph 1(5)

1

Paragraph 1(5) above is interpreted in accordance with the provisions of this paragraph.

2

The following are “children’s car seats”—

a

a safety seat;

b

the combination of a safety seat and a related wheeled framework;

c

a booster seat;

d

a booster cushion.

3

In this paragraph “safety seat” means a seat—

a

designed to be sat in by a child in a road vehicle,

b

designed so that, when in use in a road vehicle, it can be restrained—

i

by a seat belt fitted in the vehicle, or

ii

by belts, or anchorages, that form part of the seat being attached to the vehicle, or

iii

in either of those ways, and

c

incorporating an integral harness, or integral impact shield, for restraining a child seated in it.

4

For the purposes of this paragraph, a wheeled framework is “related” to a safety seat if the framework and the seat are each designed so that—

a

when the seat is not in use in a road vehicle it can be attached to the framework, and

b

when the seat is so attached, the combination of the seat and the framework can be used as a child’s pushchair.

5

In this paragraph “booster seat” means a seat designed—

a

to be sat in by a child in a road vehicle, and

b

so that, when in use in a road vehicle, it and a child seated in it can be restrained by a seat belt fitted in the vehicle.

6

In this paragraph “booster cushion” means a cushion designed—

a

to be sat on by a child in a road vehicle, and

b

so that a child seated on it can be restrained by a seat belt fitted in the vehicle.

7

In this paragraph “child” means a person aged under 14 years.

6

The supplies falling within this paragraph also include—

a

the supply, in the course of a qualifying conversion, of qualifying services related to the conversion;

b

the supply of building materials if—

i

the materials are supplied by a person who, in the course of a qualifying conversion, is supplying qualifying services related to the conversion, and

ii

those services include the incorporation of the materials in the building concerned or its immediate site.

7

The supplies falling within this paragraph also include—

a

the supply, in the course of the renovation or alteration of a single household dwelling, of qualifying services related to the renovation or alteration;

b

the supply of building materials if—

i

the materials are supplied by a person who, in the course of the renovation or alteration of a single household dwelling, is supplying qualifying services related to the renovation or alteration, and

ii

those services include the incorporation of the materials in the dwelling concerned or its immediate site.

8

Sub-paragraph (9) below applies where a supply of services is only in part a supply to which sub-paragraph (6)(a) or (7)(a) above applies.

9

The supply, to the extent that it is one to which paragraph (a) of sub-paragraph (6) or (7) above applies, is to be taken to be a supply to which that paragraph applies; and an apportionment may be made to determine that extent.

8Interpretation of paragraph 1(6): introductory

1

Paragraph 1(6) above is interpreted in accordance with paragraphs 9 to 17 and 22 below.

2

In paragraphs 10 to 14 below, “single household dwelling” means a dwelling—

a

that is designed for occupation by a single household, and

b

in relation to which the conditions set out in sub-paragraph (4) below are satisfied.

3

In paragraphs 10 to 14 below “multiple occupancy dwelling” means a dwelling—

a

that is designed for occupation by persons not forming a single household, and

b

in relation to which the conditions set out in sub-paragraph (4) below are satisfied.

4

The conditions are—

a

that the dwelling consists of self-contained living accommodation,

b

that there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling,

c

that the separate use of the dwelling is not prohibited by the terms of any covenant, statutory planning consent or similar provision, and

d

that the separate disposal of the dwelling is not prohibited by any such terms.

5

For the purposes of this paragraph, a dwelling “is designed” for occupation of a particular kind if it is so designed—

a

as a result of having been originally constructed for occupation of that kind and not having been subsequently adapted for occupation of any other kind, or

b

as a result of adaptation.

9Interpretation of paragraph 1(6): meaning of “qualifying conversion”

1

A “qualifying conversion” means—

a

a changed number of dwellings conversion (see paragraph 10 below);

b

house in multiple occupation conversion (see paragraph 11 below); or

c

a special residential conversion (see paragraph 12 below).

2

Sub-paragraph (1) above is subject to paragraphs 14 and 15 below.

10Interpretation of paragraph 1(6): meaning of “changed number of dwellings conversion”

1

A “changed number of dwellings conversion” is—

a

a conversion of premises consisting of a building where the conditions specified in this paragraph are satisfied, or

b

a conversion of premises consisting of a part of a building where those conditions are satisfied.

2

The first condition is that after the conversion the premises being converted contain a number of single household dwellings that is—

a

different from the number (if any) that the premises contain before the conversion, and

b

greater than, or equal to, one.

3

The second condition is that there is no part of the premises being converted that is a part that after the conversion contains the same number of single household dwellings (whether zero, one or two or more) as before the conversion.

11Interpretation of paragraph 1(6): meaning of “house in multiple occupation conversion”

1

A “house in multiple occupation conversion” is—

a

a conversion of premises consisting of a building where the condition specified in sub-paragraph (2) below is satisfied, or

b

a conversion of premises consisting of a part of a building where that condition is satisfied.

2

The condition is that—

a

before the conversion the premises being converted contain only a single household dwelling or two or more such dwellings,

b

after the conversion those premises contain only a multiple occupancy dwelling or two or more such dwellings, and

c

the use to which those premises are intended to be put after the conversion is not to any extent use for a qualifying residential purpose (see paragraph 17 below).

12Interpretation of paragraph 1(6): meaning of “special residential conversion”

1

A “special residential conversion” is a conversion of premises consisting of—

a

a building or two or more buildings,

b

a part of a building or two or more parts of buildings, or

c

a combination of—

i

a building or two or more buildings, and

ii

a part of a building or two or more parts of buildings,

where the conditions specified in this paragraph are satisfied.

2

The first condition is that, before the conversion, the premises being converted contain only—

a

a dwelling or two or more dwellings, or

b

a dwelling, or two or more dwellings, and—

i

an ancillary outbuilding occupied together with the dwelling or one or more of the dwellings, or

ii

two or more ancillary outbuildings each occupied together with the dwelling or one or more of the dwellings.

3

In sub-paragraph (2) above “dwelling” means single household dwelling or multiple occupancy dwelling.

4

The second condition is that where before the conversion the premises being converted contain a multiple occupancy dwelling or two or more such dwellings, the use to which that dwelling, or any of those dwellings, was last put before the conversion was not to any extent use for a qualifying residential purpose (see paragraph 17 below).

5

The third condition is that the premises being converted must be intended to be used after the conversion solely for a qualifying residential purpose.

6

The fourth condition is that, where the qualifying residential purpose is an institutional purpose, the premises being converted must be intended to form after the conversion the entirety of an institution used for that purpose.

7

In sub-paragraph (6) above “institutional purpose” means a purpose within paragraph 17(a) to (c), (f) or (g) below.

13Special residential conversions: reduced rate only for supplies made to intended user of converted accommodation

1

This paragraph applies where the qualifying conversion concerned is a special residential conversion.

2

Paragraph 1(6)(a) or (b) above does not apply to a supply unless—

a

it is made to a person who intends to use the premises being converted for the qualifying residential purpose, and

b

before it is made, the person to whom it is made has given to the person making it a certificate that satisfies the requirements in sub-paragraph (3) below.

3

Those requirements are that the certificate—

a

is in such form as may be specified in a notice published by the Commissioners, and

b

states that the conversion is a special residential conversion.

4

In sub-paragraph (2)(a) above “the qualifying residential purpose” means the purpose within paragraph 17 below for which the premises being converted are intended to be used after the conversion.

14Interpretation of paragraph 1(6): “qualifying conversion” includes related garage works

1

A qualifying conversion includes any garage works related to the—

a

changed number of dwellings conversion,

b

house in multiple occupation conversion, or

c

special residential conversion,

concerned.

2

In this paragraph “garage works” means—

a

the construction of a garage, or

b

a conversion of a non-residential building, or of a non-residential part of a building, that results in a garage.

3

For the purposes of sub-paragraph (1) above, garage works are “related” to a conversion if—

a

they are carried out at the same time as the conversion, and

b

the resulting garage is intended to be occupied with—

i

where the conversion concerned is a changed number of dwellings conversion, a single household dwelling that will after the conversion be contained in the building, or part of a building, being converted,

ii

where the conversion concerned is a house in multiple occupation conversion, a multiple occupancy dwelling that will after the conversion be contained in the building, or part of a building, being converted, or

iii

where the conversion concerned is a special residential conversion, the institution or other accommodation resulting from the conversion.

4

In sub-paragraph (2) above “non-residential” means neither designed, nor adapted, for use—

a

as a dwelling or two or more dwellings, or

b

for a qualifying residential purpose (see paragraph 17 below).

15Interpretation of paragraph 1(6): conversion not “qualifying” if planning consent and building control approval not obtained

1

A conversion is not a qualifying conversion if any statutory planning consent needed for the conversion has not been granted.

2

A conversion is not a qualifying conversion if any statutory building control approval needed for the conversion has not been granted.

16Interpretation of paragraph 1(6): meaning of “supply of qualifying services”

1

In the case of a conversion of a building, “supply of qualifying services” means a supply of services that consists in—

a

the carrying out of works to the fabric of the building, or

b

the carrying out of works within the immediate site of the building that are in connection with—

i

the means of providing water, power, heat or access to the building,

ii

the means of providing drainage or security for the building, or

iii

the provision of means of waste disposal for the building.

2

In the case of a conversion of part of a building, “supply of qualifying services” means a supply of services that consists in—

a

the carrying out of works to the fabric of the part, or

b

the carrying out of works to the fabric of the building, or within the immediate site of the building, that are in connection with—

i

the means of providing water, power, heat or access to the part,

ii

the means of providing drainage or security for the part, or

iii

the provision of means of waste disposal for the part.

3

In this paragraph—

a

references to the carrying out of works to the fabric of a building do not include the incorporation, or installation as fittings, in the building of any goods that are not building materials (see paragraph 22 below);

b

references to the carrying out of works to the fabric of a part of a building do not include the incorporation, or installation as fittings, in the part of any goods that are not building materials.

17Interpretation of paragraphs 11 to 14: meaning of “qualifying residential purpose”

For the purposes of paragraphs 11 to 14 above, “use for a qualifying residential purpose” means use as—

a

a home or other institution providing residential accommodation for children,

b

a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,

c

a hospice,

d

residential accommodation for students or school pupils,

e

residential accommodation for members of any of the armed forces,

f

a monastery, nunnery or similar establishment, or

g

an institution which is the sole or main residence of at least 90 per cent. of its residents,

except use as a hospital, prison or similar institution or an hotel, inn or similar establishment.

18Interpretation of paragraph 1(7): introductory

1

Paragraph 1(7) above is interpreted in accordance with this paragraph and paragraphs 19 to 22 below.

2

For the purposes of paragraph 1(7) above (and paragraphs 19 to 21 below)—

• “alteration” includes extension;

• “single household dwelling” has the meaning given by paragraph 8(2), (4) and (5) above.

19Paragraph 1(7) only applies where dwelling has been empty for at least 3 years

1

Paragraph 1(7) above does not apply to a supply unless either of the empty home conditions is satisfied.

2

The first “empty home condition” is that the dwelling concerned has not been lived in during the period of 3 years ending with the commencement of the relevant works.

3

The second “empty home condition” is that—

a

the dwelling was not lived in during a period of at least 3 years;

b

the person, or one of the persons, whose beginning to live in the dwelling brought that period to an end was a person who (whether alone or jointly with another or others) acquired the dwelling at a time—

i

no later than the end of that period, and

ii

when the dwelling had been not lived in for at least 3 years;

c

no works by way of renovation or alteration were carried out to the dwelling during the period of 3 years ending with the acquisition;

d

the supply is made to a person who is—

i

the person, or one of the persons, whose beginning to live in the property brought to an end the period mentioned in paragraph (a) above, and

ii

the person, or one of the persons, who acquired the dwelling as mentioned in paragraph (b) above; and

e

the relevant works are carried out during the period of one year beginning with the day of the acquisition.

4

In this paragraph “the relevant works” means—

a

where the supply is of the description set out in paragraph 1(7)(a) above, the works that constitute the services supplied;

b

where the supply is of the description set out in paragraph 1(7)(b) above, the works by which the materials concerned are incorporated in the dwelling concerned or its immediate site.

5

In sub-paragraph (3) above, references to a person acquiring a dwelling are to that person having a major interest in the dwelling granted, or assigned, to him for a consideration.

20Paragraph 1(7) only applies if planning consent and building control approval obtained

1

Paragraph 1(7) above does not apply to a supply unless any statutory planning consent needed for the renovation or alteration has been granted.

2

Paragraph 1(7) above does not apply to a supply unless any statutory building control approval needed for the renovation or alteration has been granted.

21Interpretation of paragraph 1(7): meaning of “supply of qualifying services”

1

“Supply of qualifying services” means a supply of services that consists in—

a

the carrying out of works to the fabric of the dwelling, or

b

the carrying out of works within the immediate site of the dwelling that are in connection with—

i

the means of providing water, power, heat or access to the dwelling,

ii

the means of providing drainage or security for the dwelling, or

iii

the provision of means of waste disposal for the dwelling.

2

In sub-paragraph (1)(a) above, the reference to the carrying out of works to the fabric of the dwelling does not include the incorporation, or installation as fittings, in the dwelling of any goods that are not building materials (see paragraph 22 below).

22Interpretation of paragraph 1(6) and (7): meaning of “building materials”

“Building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).

33A Refunds of VAT to museums and galleries

1

Subsections (2) to (5) below apply where—

a

VAT is chargeable on—

i

the supply of goods or services to a body to which this section applies,

ii

the acquisition of any goods by such a body from another member State, or

iii

the importation of any goods by such a body from a place outside the member States,

b

the supply, acquisition or importation is attributable to the provision by the body of free rights of admission to a relevant museum or gallery, and

c

the supply is made, or the acquisition or importation takes place, on or after 1st April 2001.

2

The Commissioners shall, on a claim made by the body in such form and manner as the Commissioners may determine, refund to the body the amount of VAT so chargeable.

3

The claim must be made before the end of the claim period.

4

Subject to subsection (5) below, “the claim period” is the period of 3 years beginning with the day on which the supply is made or the acquisition or importation takes place.

5

If the Commissioners so determine, the claim period is such shorter period beginning with that day as the Commissioners may determine.

6

Subsection (7) below applies where goods or services supplied to, or acquired or imported by, a body to which this section applies that are attributable to free admissions cannot conveniently be distinguished from goods or services supplied to, or acquired or imported by, the body that are not attributable to free admissions.

7

The amount to be refunded on a claim by the body under this section shall be such amount as remains after deducting from the VAT related to the claim such proportion of that VAT as appears to the Commissioners to be attributable otherwise than to free admissions.

8

For the purposes of subsections (6) and (7) above—

a

goods or services are, and VAT is, attributable to free admissions if they are, or it is, attributable to the provision by the body of free rights of admission to a relevant museum or gallery;

b

the VAT related to a claim is the whole of the VAT chargeable on—

i

the supplies to the body, and

ii

the acquisitions and importations by the body,

to which the claim relates.

9

The Treasury may by order—

a

specify a body as being a body to which this section applies;

b

when specifying a body under paragraph (a), specify any museum or gallery that, for the purposes of this section, is a “relevant” museum or gallery in relation to the body;

c

specify an additional museum or gallery as being, for the purposes of this section, a “relevant” museum or gallery in relation to a body to which this section applies;

d

when specifying a museum or gallery under paragraph (b) or (c), provide that this section shall have effect in the case of the museum or gallery as if in subsection (1)(c) there were substituted for 1st April 2001 a later date specified in the order.

10

References in this section to VAT do not include any VAT which, by virtue of any order under section 25(7), is excluded from credit under that section.

9A

This section shall have effect in relation to a body which is registered and to which section 33A applies as if—

a

any reference to a VAT credit included a reference to a refund under that section, and

b

any reference to credit for input tax included a reference to VAT chargeable on supplies, acquisitions or importations which were attributable to the provision by the body of free rights of admission to a museum or gallery that in relation to the body was a relevant museum or gallery for the purposes of section 33A.

, or

c

a body which is registered and to which section 33A applies is entitled to a refund under that section,

, and

c

a supplement paid to any body under subsection (1)(c) shall be treated as an amount due to it by way of refund under section 33A.

29A Reduced rate

1

VAT charged on—

a

any supply that is of a description for the time being specified in Schedule 7A, or

b

any equivalent acquisition or importation,

shall be charged at the rate of 5 per cent.

2

The reference in subsection (1) above to an equivalent acquisition or importation, in relation to any supply that is of a description for the time being specified in Schedule 7A, is a reference (as the case may be) to—

a

any acquisition from another member State of goods the supply of which would be such a supply; or

b

any importation from a place outside the member States of any such goods.

3

The Treasury may by order vary Schedule 7A by adding to or deleting from it any description of supply or by varying any description of supply for the time being specified in it.

4

The power to vary Schedule 7A conferred by subsection (3) above may be exercised so as to describe a supply of goods or services by reference to matters unrelated to the characteristics of the goods or services themselves.

In the case of a supply of goods, those matters include, in particular, the use that has been made of the goods.

b

is not established, and does not have any fixed establishment, in the United Kingdom;

ba

is established in a country or territory in respect of which it appears to the Commissioners that the condition specified in subsection (1A) below is satisfied; and

1A

The condition mentioned in subsection (1)(ba) above is that—

a

the country or territory is neither a member State nor a part of a member State, and

b

there is no provision for mutual assistance between the United Kingdom and the country or territory similar in scope to the assistance provided for between the United Kingdom and each other member State by the mutual assistance provisions.

1B

In subsection (1A) above “the mutual assistance provisions” means—

a

section 11 of the Finance Act 1977 (c. 36) (recovery of duty due etc. in other member States),

b

section 77 of the Finance Act 1978 (c. 42) (disclosure of tax information to tax authorities in other member States), and

c

Council Regulation (EEC) No. 218/92 of 27th January 1992 on administrative cooperation in the field of indirect taxation (VAT).

2

With the agreement of the Commissioners, a person—

a

who has not been required under subsection (1) above to appoint another person to act on his behalf in relation to VAT, and

b

in relation to whom the conditions specified in paragraphs (a), (b) and (c) of that subsection are satisfied,

may appoint another person to act on his behalf in relation to VAT.

2A

In this Act “VAT representative” means a person appointed under subsection (1) or (2) above.

1

In the case of a participator in an oil field, an allowable unrelievable field loss is the unrelievable portion of an allowable loss falling within subsection (1B) below.

1A

Subsection (1) above is subject to subsections (5) to (9) below and Schedule 8 to this Act.

1B

An allowable loss falls within this subsection if—

a

the loss accrued in any chargeable period from another field (“the abandoned field”),

b

the person to whom the loss accrued is—

i

the participator, or

ii

if the participator is a company, a company associated with the participator in respect of the loss (see subsection (3) below),

c

the loss accrued to that person as a participator in the abandoned field, and

d

the winning of oil from the abandoned field has permanently ceased.

1C

The “unrelievable portion” of an allowable loss falling within subsection (1B) above is so much of that loss as cannot under the provisions of section 7 of this Act be relieved against assessable profits accruing from the abandoned field to the person to whom the loss accrued.

1D

Subsection (1C) above is subject to Schedule 32 to the Finance Act 2001 (determination of unrelievable portion where Parts 2 and 3 of Schedule 17 to the Finance Act 1980 did not apply to transfer of interest in abandoned field).

1C

In any case where—

a

any expenditure incurred by a participator in a taxable field would, apart from this subsection, be allowable for the field under subsection (1)(i) or (j) above, and

b

the qualifying asset that is relevant to the incurring of that expenditure has at some time been used otherwise than in connection with the field,

only the relevant portion of the expenditure is allowable for the field under subsection (1)(i) or (j) above.

1D

In subsection (1C) above “the relevant portion” of the expenditure is the portion of the expenditure that it is just and reasonable to apportion to use of the asset that is use in connection with the field.

1E

Subsections (1C) and (1D) above have effect subject to the transitional provisions in section 102(5) to (11) of the Finance Act 2001.

3

Subsections (3A) to (3H) below apply where, in the case of any taxable field, the oil—

a

won and saved from the field, or

b

expected to be won and saved from the field,

includes oil falling within subsection (1)(a) above.

3A

Any expenditure allowable under section 3 of this Act for the field by virtue of any of paragraphs (a) to (c) of section 3(1) of this Act shall be a proportion of what it would otherwise have been.

3B

The proportion mentioned in subsection (3A) above is that which, according to estimates submitted to the Secretary of State after the end of June 1975 and approved by him as reasonable, the field’s original reserves of oil exclusive of oil falling within subsection (1)(a) above bear to the field’s original reserves of oil inclusive of oil so falling.

3C

Until estimates have been submitted and approved for the purpose of subsection (3B) above, the expenditure allowable for the field under section 3 of this Act by virtue of section 3(1)(a), (b) or (c) of this Act shall be deemed to be nil.

3D

Any expenditure allowable under section 3 of this Act for the field by virtue of section 3(1)(hh) of this Act shall be a portion of what it would otherwise have been.

3E

That portion is determined in accordance with the following rules—

1

Identify the abandonment guarantee (within the meaning given by section 104 of the Finance Act 1991 (c. 31)) on the obtaining of which the expenditure was incurred.

2

Identify the liabilities covered by the guarantee.

3

Identify which of those liabilities relate to qualifying assets.

4

Identify the portion of the expenditure that it is just and reasonable to apportion to the liabilities identified under rule 3.

5

Identify the qualifying assets to which the liabilities identified under rule 3 relate.

6

Identify the use of those qualifying assets that has been (or is expected to be) non-excluded use.

7

Assume that expenditure is incurred on the provision of those qualifying assets and identify the proportion of the hypothetical expenditure that it would be just and reasonable to apportion to the use of those assets identified under rule 6.

8

The portion mentioned in subsection (3D) above is then determined by multiplying—

i

the portion identified under rule 4, by

ii

the proportion (expressed as a fraction) identified under rule 7.

3F

Any expenditure allowable under section 3 of this Act for the field by virtue of section 3(1)(i) or (j) of this Act shall be a portion of what it would otherwise have been.

3G

That portion is determined in accordance with the following rules—

1

Identify the qualifying asset that is relevant to the incurring of the expenditure.

2

Identify the use of that qualifying asset that has been non-excluded use.

3

Assume that expenditure is incurred on the provision of that qualifying asset and identify the proportion of the hypothetical expenditure that it would be just and reasonable to apportion to the use of that asset identified under rule 2.

4

The portion mentioned in subsection (3F) above is then determined by multiplying—

i

the expenditure, by

ii

the proportion (expressed as a fraction) identified under rule 3.

3H

In subsections (3E) and (3G) above—

• “non-excluded use” means—

  1. a

     use in connection with the winning and saving of oil, other than excluded oil, from the field, or

  2. b

     use giving rise to receipts that, for the purposes of the Oil Taxation Act 1983 (c. 56), are tariff receipts attributable to a participator in the field;

• “qualifying asset” has the same meaning as it has for the purposes of the Oil Taxation Act 1983 (see section 8 of that Act).

11AExemption: Northern Ireland gas supplies

A supply of gas is exempt from the levy if—

a

the supply is made by a gas utility, and

b

the person to whom the supply is made intends to cause the gas to be burned in Northern Ireland.

, and

c

uses the electricity produced otherwise than in exemption-retaining ways.

c

uses the electricity produced otherwise than in exemption-retaining ways.

3A

For the purposes of this paragraph, electricity is used in an “exemption-retaining” way if it is used—

a

in making supplies that are excluded under paragraphs 8 to 10 or exempt under any of paragraphs 11, 12 and 18, or

b

in any of the ways mentioned in sub-paragraphs (i) to (iv) of paragraph 13(b).

a

there is—

i

a disposal of an asset by the transferor company, which is a disposal to which section 171(1) of the 1992 Act applies, or

ii

by virtue of an election under section 171A(2) of that Act, a deemed transfer by the transferor company to another member of the group,

aa

the disposal is also, or the deemed transfer gives rise to, a transfer of value, and