Part 2Trading income
F1Chapter 16AOil activities
Tariff receipts etc
225MTariff receipts etc
1
Subsection (5) applies to a sum which meets conditions A, B and C.
2
Condition A is that the sum constitutes a tariff receipt or tax-exempt tariffing receipt of a person who is a participator in an oil field.
3
Condition B is that the sum constitutes consideration in the nature of income rather than capital.
4
Condition C is that the sum would not, but for subsection (5), be treated as mentioned in that subsection.
5
The sum is to be treated as a receipt of the separate trade mentioned in section 16(1) (oil extraction and related activities).
6
So far as they would not otherwise be so treated, the activities—
a
of a participator in an oil field, or
b
of a person connected with the participator,
in making available an asset in a way which gives rise to tariff receipts or tax-exempt tariffing receipts of the participator are to be treated for the purposes of this Chapter as oil extraction activities.
7
In determining for the purposes of subsection (2) whether a sum constitutes a tariff receipt or tax-exempt tariffing receipt of a person who is a participator, no account may 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 or tax-exempt tariffing receipt of the participator.
But in relation to the person by whom such a sum is actually received, subsection (2) has effect as if the person were a participator and as if condition A were met.
8
References in this section to a person connected with a participator include a person with whom the person is associated, within the meaning of paragraph 11 of Schedule 2 to the Oil Taxation Act 1983, but section 878(5) of this Act (application of definition of “connected” persons) does not apply for the purposes of this section.
9
In this section—
“tax-exempt tariffing receipt” has the meaning given by section 6A(2) of the Oil Taxation Act 1983, and
“tariff receipt” has the same meaning as in that Act.
Pt. 2 Ch. 16A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 1 para. 2 (with Sch. 9 paras. 1-9, 22)