|
| |
| |
(5C) | This subsection applies to blended oil within the meaning of section |
| |
63(1A) of the Finance Act 1987 (other than light gases) which— |
| |
(a) | is not gaseous at a temperature of 15 degrees Centigrade and a |
| |
pressure of one atmosphere, and |
| |
(b) | is not normally disposed of crude by deliveries in quantities of |
| 5 |
25,000 metric tonnes or less. |
| |
(5D) | Regulations under subsection (5B)— |
| |
(a) | may apply generally or only to specified cases or circumstances, |
| |
(b) | may make different provision for different cases or |
| |
| 10 |
(c) | may make incidental, consequential, or transitional provision, |
| |
(d) | shall be made by statutory instrument, and |
| |
(e) | may not be made unless a draft has been laid before and |
| |
approved by resolution of the House of Commons.” |
| |
(3) | Regulations under section 2(5B) of OTA 1975 (inserted by subsection (2) above) |
| 15 |
may have effect for the purpose of calculating profits in relation to a chargeable |
| |
period ending at any time on or after 1st July 2006. |
| |
| |
| |
(1) | Section 61 of FA 1987 (oil taxation: nominations) shall be amended as follows. |
| 20 |
(2) | In subsection (1) omit “, supplies and appropriations”. |
| |
(3) | For subsections (3) and (4) substitute— |
| |
“(3) | If the market value of a relevant delivery ascertained in accordance |
| |
with Schedule 3 to the principal Act exceeds a participator’s delivery |
| |
proceeds of a relevant delivery (within the meaning given by Schedule |
| 25 |
10), the excess shall be brought into account by him in accordance with |
| |
section 2(5)(e) of the principal Act. |
| |
(4) | If a relevant delivery is a delivery of blended oil within the meaning of |
| |
section 63, regulations under section 2(5B) of the principal Act shall |
| |
apply for the purposes of determining the proportion of the excess |
| 30 |
| |
(4A) | For each month in which a participator makes a relevant delivery, his |
| |
monthly excess is the sum of his excesses (if any) calculated in |
| |
accordance with subsection (3). |
| |
(4B) | For each chargeable period of an oil field “the excess of nominated |
| 35 |
proceeds for the period” means, in relation to a participator in the oil |
| |
field, that proportion of the sum of his monthly excesses for the |
| |
chargeable period (if any) which is attributable to the field.” |
| |
(4) | Subsections (6) and (7) shall cease to have effect. |
| |
(5) | In subsection (8) for “9th February 1987” substitute “1st July 2006”. |
| 40 |
| |
(a) | omit “subsection (7) or”, and |
| |
(b) | after “shall” insert “(unless otherwise expressly provided)”. |
| |
| |
| |
|
| |
| |
(7) | This section shall have effect in relation to chargeable periods ending on or |
| |
| |
150 | Amendment of Schedule 10 to FA 1987 |
| |
(1) | Schedule 10 to FA 1987 (oil taxation: nominations) shall be amended as follows. |
| |
| 5 |
(a) | in sub-paragraph (1)— |
| |
(i) | omit “, “proposed supply” and “proposed appropriation””, |
| |
(ii) | for “paragraph 3 below” substitute “paragraph 12A below”, and |
| |
(iii) | for “paragraphs (a) to (c)” substitute “paragraph (a)”, and |
| |
(b) | omit sub-paragraph (2). |
| 10 |
| |
(a) | sub-paragraph (1)(b), (c) and (d), and |
| |
(b) | the words following sub-paragraph (1)(d). |
| |
| |
| 15 |
(a) | for sub-paragraph (1) substitute— |
| |
“(1) | If a nomination is made during business hours it shall be |
| |
| |
(a) | it is made within the period of two hours beginning |
| |
with the transaction base time, and |
| 20 |
(b) | it satisfies the requirements of paragraph 5. |
| |
(1A) | If a nomination is made outside business hours it shall be |
| |
| |
(a) | it is made within the period of two hours beginning |
| |
with the transaction base time, and |
| 25 |
(b) | it satisfies the requirements of paragraph 5 or 5A. |
| |
(1B) | For the purposes of this paragraph— |
| |
(a) | the transaction base time of a proposed transaction is |
| |
such time on such date as the Board shall prescribe by |
| |
| 30 |
(b) | “business hours” means the period beginning with |
| |
09.00 and ending with 17.00 (UK time) on a business |
| |
day (within the meaning of the Bills of Exchange Act |
| |
| |
(b) | omit sub-paragraphs (2) and (2A), |
| 35 |
(c) | in sub-paragraph (3)— |
| |
(i) | for “transaction base date” substitute “transaction base time”, |
| |
| |
(ii) | for “date” in each place substitute “time”, and |
| |
(d) | omit sub-paragraph (4). |
| 40 |
| |
(a) | in sub-paragraph (1) for “A nomination of a proposed transaction shall |
| |
not be effective unless it specifies, in respect to that transaction” |
| |
| |
| |
|
| |
| |
substitute “The requirements of this paragraph for a nomination in |
| |
respect of a proposed transaction are”, |
| |
(b) | in sub-paragraph (1)(b) omit “in the case of a proposed sale”, |
| |
(c) | in sub-paragraph (1)(c) and (d) omit “or relevantly appropriated”, |
| |
(d) | in sub-paragraph (1)(d) for “supplied” substitute “delivered”, |
| 5 |
(e) | for sub-paragraph (1)(g) substitute— |
| |
“(g) | the transaction base time; and”, |
| |
(f) | in sub-paragraph (2) after “A nomination” insert “made under this |
| |
| |
(g) | in sub-paragraph (3) after “a nomination” insert “made under this |
| 10 |
| |
(7) | After paragraph 5 insert— |
| |
“5A (1) | The requirements of this paragraph for a nomination in respect of a |
| |
proposed transaction are— |
| |
(a) | the name of the participator or of the group of which the |
| 15 |
participator is a member; |
| |
(b) | the name of the person to whom the oil is to be sold, or the |
| |
name of the group of which that person is a member; |
| |
(c) | the blend or grade of oil to be delivered; |
| |
(d) | the nominated price of the oil to be delivered; |
| 20 |
(e) | the nominal volume of the oil; |
| |
(f) | the proposed delivery month; |
| |
(g) | the transaction base time; and |
| |
(h) | such other information as may be prescribed by the Board. |
| |
(2) | In sub-paragraph (1) “group” has the meaning given by section 53 of |
| 25 |
| |
5B (1) | A nomination of a transaction shall not be effective unless oil is |
| |
delivered pursuant to a contract at arm’s length the terms of which |
| |
incorporate the information specified in the nomination in |
| |
accordance with paragraph 5(1) or 5A(1). |
| 30 |
| |
(a) | a contract need not refer to the transaction base time, and |
| |
(b) | the nomination shall be effective whether or not delivery |
| |
takes place in the proposed delivery month specified in the |
| |
nomination and the contract.” |
| 35 |
| |
(a) | in sub-paragraph (1) omit “Subject to sub-paragraph (3) below,”, and |
| |
(b) | omit sub-paragraphs (2) and (3). |
| |
(9) | Omit paragraph 7(2) and (5). |
| |
(10) | After paragraph 7(5) insert— |
| 40 |
“(6) | The Board may by regulations prescribe that in specified |
| |
circumstances the nominal volume in relation to a delivery shall be |
| |
treated as greater or less than the nominal volume ascertained in |
| |
accordance with the preceding provisions of this paragraph. |
| |
(7) | Regulations under sub-paragraph (6)— |
| 45 |
| |
| |
|
| |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | may not be made unless a draft has been laid before and |
| |
approved by resolution of the House of Commons.” |
| |
(11) | Omit paragraphs 8 to 11. |
| |
(12) | In paragraph 12(1) omit “, supply or appropriation”. |
| 5 |
(13) | After paragraph 12 insert— |
| |
| |
12A | For the purposes of section 61 and this Schedule— |
| |
(a) | a reference to the proposed delivery month in relation to a |
| |
proposed transaction is a reference to the month in which |
| 10 |
delivery is to take place, |
| |
(b) | “relevant delivery” means a delivery of oil under a contract |
| |
made at arm’s length in respect of which there has been no |
| |
effective nomination, and |
| |
(c) | “delivery proceeds” means the price received for a relevant |
| 15 |
| |
(14) | This section shall have effect in relation to a transaction whenever proposed, |
| |
but shall not have effect in relation to a proposed transaction with a transaction |
| |
base date (within the meaning given by regulations under paragraph 4 of |
| |
Schedule 10 to FA 1987) on or before 30th June 2006. |
| 20 |
(15) | Regulations under paragraph 4(1B) of Schedule 10 to FA 1987 (inserted by |
| |
subsection (5) above) may have retrospective effect. |
| |
151 | Nomination excesses and corporation tax |
| |
(1) | After section 493(1) of ICTA (valuation of oil disposed of or appropriated) |
| |
| 25 |
“(1A) | Where an excess of nominated proceeds in a chargeable period (within |
| |
the meaning given by section 61 of the Finance Act 1987) is taken into |
| |
account in computing a person’s profits under section 2(5)(e) of the |
| |
1975 Act (or would be taken into account if the person were chargeable |
| |
to tax under that Act in respect of a field)— |
| 30 |
(a) | for the purposes of subsection (1) the amount of the excess shall |
| |
be added to the consideration which the person is deemed to |
| |
have received in respect of oil disposed of by him in the period, |
| |
| |
(b) | for the purposes of corporation tax, that amount shall be |
| 35 |
available to the person as a deduction in computing the profits |
| |
of any trade to which section 492(1) does not apply.” |
| |
(2) | This section shall have effect in relation to deliveries of oil made on or after 1st |
| |
| |
| |
| |
|
