Finance Bill

Session 2012 - 13
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Finance Bill

Finance Bill
Schedule 22 — Reduction of supplementary charge for certain oil fields
527

Schedule 22
Section 184

Reduction of supplementary charge for certain oil fields
Amendments of Chapter 7 of Part 8 of CTA 2010
1
In Part 8 of CTA 2010 (oil activities), Chapter 7 (reduction of supplementary
charge for certain new oil fields) is amended as follows.
5
2
In section 334 (company’s pool of field allowances), for “new oil fields”
substitute “eligible oil fields”.
3     (1)
Section 337 (initial licensee to hold a field allowance) is amended as follows.
      (2)
In subsection (1)—
(a)
for “an initial licensee in a new oil field” substitute “a licensee in an
10
additionally-developed oil field or a new oil field (an “eligible oil
field”) on the authorisation day”, and
(b)
at the end insert “(and accordingly may hold more than one field
allowance for the field at the same time)”.
      (3)
In subsection (2), omit “initial”.
15
      (4)
The heading of that section becomes “Licensee to hold field allowance”.
4
In section 338 (holding a field allowance on acquisition of equity share), for
“a new oil field” substitute “an eligible oil field”.
5
In section 339 (unactivated amount of field allowance), in subsections (1)
and (3), for “a new oil field” substitute “an eligible oil field”.
20
6     (1)
Section 340 (introduction to section 341) is amended as follows.
      (2)
In subsection (1), for “a new oil field” substitute “an eligible oil field”.
      (3)
In subsection (5), for “the new oil field” substitute “the field”.
7     (1)
Section 341 (activation of field allowance) is amended as follows.
      (2)
In subsection (1), for “the new oil field” substitute “the eligible oil field”.
25
      (3)
After subsection (3) insert—
“(4)
Subsection (5) applies for the purpose of determining the amount of
a company’s field allowance for an eligible oil field (“the relevant
field allowance”) to be activated in a case where—
(a)
the company holds one or more other field allowances for the
30
field, and
(b)
at the time when the company began to hold the relevant
field allowance, the company already held one or more of
those other field allowances (an “earlier field allowance”).
(5)
The amount of the company’s relevant income from the field in the
35
accounting period is to be reduced (but not to below nil) by the
amount of any earlier field allowance activated in respect of the
accounting period.
(6)
In a case where the company began to hold two or more field
allowances at the same time, the company may determine the order
40

Finance Bill
Schedule 22 — Reduction of supplementary charge for certain oil fields
528

in which the company is to be regarded for the purposes of this
section as having begun to hold them.”
8
In section 342 (introduction to sections 343 and 344), in subsections (1) and
(6), for “a new oil field” substitute “an eligible oil field”.
9
In section 343 (reference periods), in subsection (3), for “the new oil field”
5
substitute “the eligible oil field”.
10    (1)
Section 344 (activation of field allowance) is amended as follows.
      (2)
In subsection (1), for “the new oil field” substitute “the eligible oil field”.
      (3)
In subsection (4), for “the new oil field” substitute “the field”.
      (4)
After that subsection insert—
10
“(5)
Subsection (6) applies for the purpose of determining the amount of
a company’s field allowance for an eligible oil field (“the relevant
field allowance”) to be activated in a case where—
(a)
the company holds one or more other field allowances for the
field, and
15
(b)
at the time when the company began to hold the relevant
field allowance, the company already held one or more of
those other field allowances (an “earlier field allowance”).
(6)
The amount of the company’s relevant income from the field in the
reference period is to be reduced (but not to below nil) by the amount
20
of any earlier field allowance activated in respect of the reference
period.
(7)
In a case where the company began to hold two or more field
allowances at the same time, the company may determine the order
in which the company is to be regarded for the purposes of this
25
section as having begun to hold them.”
11    (1)
Section 345 (introduction to sections 346 and 347) is amended as follows.
      (2)
In subsection (2)—
(a)
for “a new oil field” substitute “an eligible oil field”, and
(b)
for “the new oil field” substitute “the field”.
30
      (3)
In subsections (3) and (4), for “the new oil field” substitute “the field”.
      (4)
In subsection (6), for “a new oil field” substitute “an eligible oil field”.
12    (1)
Section 346 (reduction of field allowance if equity disposed of) is amended
as follows.
      (2)
In subsection (1), for “the new oil field” (in the first place it occurs) substitute
35
“the eligible oil field”.
      (3)
In the definitions of “E1” and “E2”, for “the new oil field” substitute “the
field”.
13    (1)
Section 347 (acquisition of field allowance if equity acquired) is amended as
follows.
40
      (2)
In subsection (1), for “the new oil field” substitute “the eligible oil field”.
      (3)
In subsection (2)—

Finance Bill
Schedule 22 — Reduction of supplementary charge for certain oil fields
529

(a)
for “the new oil field” (in the first place it occurs) substitute “the
eligible oil field”, and
(b)
for “the new oil field” (in the second place it occurs) substitute “the
field”.
      (4)
In subsection (4), for “the new oil field” substitute “the field”.
5
14    (1)
Section 349 (orders) is amended as follows.
      (2)
In subsection (1), before “qualifying oil fields” insert “additionally-
developed oil fields or”.
      (3)
In subsection (2), for “new oil field” (in both places) substitute “eligible oil
field”.
10
      (4)
After subsection (2) insert—
“(2A)
The Commissioners for Her Majesty’s Revenue and Customs may by
order make provision about the meaning of any term used in this
Chapter.”
      (5)
For subsection (3) substitute—
15
“(3)
The provision that may be made by an order under this section
includes—
(a)
provision amending this Chapter,
(b)
provision that has effect in relation to times before the order
is made and does not increase any person’s liability to tax,
20
and
(c)
incidental, supplemental, consequential, transitional or
saving provision, including provision amending, repealing
or revoking any provision made by or under this Act.”
15
Before section 350 insert—
25
“349A
“Additionally-developed oil field”
(1)
In this Chapter an oil field is an “additionally-developed oil field”
if—
(a)
a national authority has authorised a project described in an
addendum to the consent for development for the oil field,
30
and
(b)
the project meets such conditions as may be specified in an
order made by the Commissioners for Her Majesty’s
Revenue and Customs.
(2)
In this section—
35
“consent for development”, in relation to an oil field, does not
include consent which is limited to the purpose of testing the
characteristics of an oil-bearing area,
“development”, in relation to an oil field, means winning oil
from the field otherwise than in the course of searching for oil
40
or drilling wells, and
“national authority” means—
(a)
the Secretary of State, or
(b)
a Northern Ireland department.

Finance Bill
Schedule 22 — Reduction of supplementary charge for certain oil fields
530

(3)
An order under this section may include provision having effect in
relation to times before it is made, provided that it does not increase
any person’s liability to tax.
(4)
No order may be made under this section unless a draft of the
statutory instrument containing it has been laid before and approved
5
by a resolution of the House of Commons.”
16    (1)
Section 357 (other definitions) is amended as follows.
      (2)
For the definition of “authorisation day” substitute—
““authorisation day” means—
(a)
in relation to an additionally-developed oil field, the
10
day when the project mentioned in section 349A(1) is
authorised, and
(b)
in relation to a new oil field, the day when
development of the field is authorised as mentioned
in section 350(1)(b),”.
15
      (3)
After that definition insert—
““eligible oil field” means an oil field which is an additionally-
developed oil field or a new oil field,”.
      (4)
Omit the definition of “initial licensee”.
      (5)
In the definition of “relevant income”, for “a new oil field” substitute “an
20
eligible oil field”.
17
The heading of the Chapter becomes “REDUCTION OF SUPPLEMENTARY
CHARGE FOR ELIGIBLE OIL FIELDS”.
Consequential amendments
18    (1)
Part 8 of CTA 2010 (oil activities) is amended as follows.
25
      (2)
In section 270 (overview of Part)—
(a)
in subsection (7), for “certain new oil fields” substitute “eligible oil
fields”, and
(b)
in subsection (8), for paragraph (c) substitute—
“(c)
“eligible oil field”, see section 357.”
30
      (3)
In section 330 (supplementary charge in respect of ring fence trades), in
subsection (5), for “certain new oil fields” substitute “eligible oil fields”.
19    (1)
Schedule 4 to CTA 2010 (index of defined expressions) is amended as
follows.
      (2)
At the appropriate place insert—
35

“eligible oil field (in
section 357”;

Chapter 7 of Part 8)

“additionally-developed
section 349A”.

oil field (in Chapter 7 of

Part 8)

40

Finance Bill
Schedule 23 — Air passenger duty
Part 1 — Northern Ireland long haul rates of duty from 1 November 2011 to 31 March 2012
531

      (3)
Omit the entry relating to “initial licensee (in Chapter 7 of Part 8)”.
20
In section 63 of FA 2011 (reduction of supplementary charge for new oil
fields), omit subsection (3).
Commencement
21    (1)
The amendments made by paragraphs 14, 15 and 16(3) come into force on
5
the day on which this Act is passed.
      (2)
The other amendments made by this Schedule come into force in accordance
with provision contained in an order made by the Treasury.
      (3)
An order made under sub-paragraph (2) may—
(a)
make different provision for different purposes;
10
(b)
provide for such amendments to have effect in relation to times
before the order is made.
22    (1)
The Commissioners for Her Majesty’s Revenue and Customs may by order
make any incidental, supplemental, consequential, transitional or saving
provision in consequence of the amendments made by this Schedule.
15
      (2)
An order under this paragraph may—
(a)
amend, repeal or revoke any provision made by or under CTA 2010;
(b)
include provision having effect in relation to times before it is made,
provided that it does not increase any person’s liability to tax.
Schedule 23
20
Section 189

Air passenger duty
Part 1
Northern Ireland long haul rates of duty from 1 November 2011 to 31 March
2012
1
In section 30 of FA 1994 (air passenger duty: rates of duty) after subsection
25
(4A) insert—
“(4B)
Subsection (4C) applies if—
(a)
the passenger’s journey is a relevant Northern Ireland
journey, and
(b)
apart from subsection (4C), subsection (2) would not apply to
30
the journey.
(4C)
The applicable rate in subsection (2) applies to the journey instead of
the applicable rate in subsection (3), (4) or (4A) (as the case may be).
(4D)
A passenger’s journey is a “relevant Northern Ireland journey”—
(a)
in the case of a journey which has only one flight, if the flight
35
begins in Northern Ireland, and
(b)
in any other case, if the first flight of the journey—
(i)
begins in Northern Ireland, and

Finance Bill
Schedule 23 — Air passenger duty
Part 2 — Rates of duty from 1 April 2012
532

(ii)
is not followed by a connected flight beginning at a
place in the United Kingdom or a territory specified
in Part 1 of Schedule 5A.”
2
In article 3 of the Air Passenger Duty (Connected Flights) Order 1994 (S.I.
1994/1821) for “section 30(6), or section 31(3),” substitute “Chapter 4 of Part
5
1”.
3
The amendments made by this Part of this Schedule have effect in relation
to the carriage of passengers beginning on or after 1 November 2011 but
before 1 April 2012.
Part 2
10
Rates of duty from 1 April 2012
4     (1)
Section 30 of FA 1994 (air passenger duty: rates of duty) is amended as
follows.
      (2)
In subsection (2)—
(a)
in paragraph (a) for “£12” substitute “£13”, and
15
(b)
in paragraph (b) for “£24” substitute “£26”.
      (3)
In subsection (3)—
(a)
in paragraph (a) for “£60” substitute “£65”, and
(b)
in paragraph (b) for “£120” substitute “£130”.
      (4)
In subsection (4)—
20
(a)
in paragraph (a) for “£75” substitute “£81”, and
(b)
in paragraph (b) for “£150” substitute “£162”.
      (5)
In subsection (4A)—
(a)
in paragraph (a) for “£85” substitute “£92”, and
(b)
in paragraph (b) for “£170” substitute “£184”.
25
      (6)
After subsection (4A) insert—
“(4B)
Subsection (4C) applies if—
(a)
the passenger’s journey is a relevant Northern Ireland
journey, and
(b)
apart from subsection (4C), subsection (2) would not apply to
30
the journey.
(4C)
The applicable rate in subsection (2) applies to the journey instead of
the applicable rate in subsection (3), (4) or (4A) (as the case may be).
(4D)
A passenger’s journey is a “relevant Northern Ireland journey”—
(a)
in the case of a journey which has only one flight, if the flight
35
begins in Northern Ireland, and
(b)
in any other case, if the first flight of the journey—
(i)
begins in Northern Ireland, and
(ii)
is not followed by a connected flight beginning at a
place in the United Kingdom or a territory specified
40
in Part 1 of Schedule 5A.”

Finance Bill
Schedule 23 — Air passenger duty
Part 3 — Devolution of Northern Ireland long haul rates of duty
533

5
In article 3 of the Air Passenger Duty (Connected Flights) Order 1994 (S.I.
1994/1821) for “section 30(6), or section 31(3),” substitute “Chapter 4 of Part
1”.
6
The amendments made by this Part of this Schedule have effect in relation
to the carriage of passengers beginning on or after 1 April 2012.
5
Part 3
Devolution of Northern Ireland long haul rates of duty
7
Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.
8     (1)
Section 30 (rates of duty) is amended as follows.
      (2)
After subsection (1) insert—
10
“(1A)
Subsection (1) does not apply to the carriage of a chargeable
passenger to which section 30A below (Northern Ireland long haul
rates of duty) applies.”
      (3)
Omit subsections (4B) to (4D) (as inserted by paragraph 4(6) above).
      (4)
The amendments made by this paragraph have effect in relation to the
15
carriage of passengers beginning on or after the relevant day as defined in
section 30A of FA 1994 (as inserted by paragraph 9 below).
9
After section 30 insert—
“30A
Northern Ireland long haul rates of duty
(1)
This section applies to the carriage of a chargeable passenger if—
20
(a)
the carriage begins on or after the relevant day,
(b)
the only flight, or the first flight, of the passenger’s journey
begins at a place in Northern Ireland,
(c)
the passenger’s journey does not end at a place in the United
Kingdom or a territory specified in Part 1 of Schedule 5A, and
25
(d)
if the passenger’s journey has more than one flight, the first
flight is not followed by a connected flight beginning at a
place in the United Kingdom or a territory specified in Part 1
of Schedule 5A.
(2)
Air passenger duty is chargeable on the carriage of the chargeable
30
passenger at the rate determined as follows.
(3)
If the passenger’s journey ends at a place in a territory specified in
Part 2 of Schedule 5A—
(a)
if the passenger’s agreement for carriage provides for
standard class travel in relation to every flight on the
35
passenger’s journey, the rate is the rate set by an Act of the
Northern Ireland Assembly for the purposes of this
paragraph, and
(b)
in any other case, the rate is the rate set by an Act of the
Northern Ireland Assembly for the purposes of this
40
paragraph.
(4)
If the passenger’s journey ends at a place in a territory specified in
Part 3 of Schedule 5A—