931.This section sets out the definition of “associated companies” for the purposes of the Part. It is based on section 502(3), (3A) and (4) of ICTA.
932.Subsection (2) applies the consortium relief rules in Part 5 of this Act for the purposes of this Part with the following modification.
933.Section 153 provides the conditions by which a company is a member of a consortium. The additional circumstance in section 153(3) is not relevant for the purposes of the oil taxation provisions. Section 271 therefore operates by adopting a definition of “owned by a consortium” which encompasses the meaning of section 153(1) and (2) only.
934.This section sets out the definition of “oil extraction activities” for the purposes of this Part. It is based on section 502(1) and (2) of ICTA.
935.Certain definitions are taken from the PRT legislation in section 12 of OTA 1975.
936.The corresponding rule for income tax is section 225A of ITTOIA (inserted by Schedule 1 to TIOPA).
937.This section sets out the meaning of “oil rights” for the purposes of this Part. It is based on section 502(1) of ICTA.
938.The corresponding rule for income tax is section 225B of ITTOIA (inserted by Schedule 1 to TIOPA).
939.This section sets out a definition of “oil-related activities”. It is based on section 492(1) of ICTA.
940.This definition underpins the meaning of “ring fence trade” in section 277 and the deeming of a separate trade for corporation tax purposes in section 279. The corresponding rule for income tax is section 16 of ITTOIA.
941.This section sets out the meaning of “ring fence income” for the purposes of this Part. It is based on section 502(1) of ICTA and section 62 of FA 1991.
942.This term is then picked up in section 276 as part of the definition of a company’s “ring fence profits”.
943.The corresponding rule for income tax is section 225C of ITTOIA (inserted by Schedule 1 to TIOPA).
944.This section sets out the meaning of “ring fence profits” for the purposes of this Part. It is based on section 502(1) and (1A) of ICTA.
945.Although the definition is not explicitly limited to corporation tax in the source legislation, the term is only used in the legislation in relation to corporation tax. This term is therefore not included in the rewritten rules for income tax.
946.This section sets out the meaning of “ring fence trade” for the purposes of this Part. It is based on section 502(1) of ICTA.
947.The corresponding rule for income tax is section 225D of ITTOIA (inserted by Schedule 1 to TIOPA).
948.This section sets out further definitions necessary for this Part. It is based on sections 493(1A), 500(10) and 502(1) and (2) of ICTA, and section 62(2) of FA 1991.
949.The corresponding rule for income tax is section 225E of ITTOIA (inserted by Schedule 1 to TIOPA).