|
| |
|
“oil” includes any substance which would be oil if the |
| |
enactments mentioned in section 1(1) of the principal Act |
| |
extended to a foreign field; |
| |
“oil field” includes a foreign field; |
| |
“oil taxation legislation” means Part 1 of the principal Act and |
| 5 |
any enactment construed as one with that Part; |
| |
“originating fields”, in relation to any blended oil, means the oil |
| |
fields from which oil which has been mixed as mentioned in |
| |
| |
“relevant participator” means a person who is a participator in |
| 10 |
the relevant field at any time in the relevant period.” |
| |
3 (1) | Schedule 12 (supplementary provisions as to blended oil) is amended as |
| |
| |
(2) | For paragraphs 1 and 2 (and the headings before them) substitute— |
| |
| 15 |
| |
“HMRC” means Her Majesty’s Revenue and Customs; |
| |
“method of allocation” means a method for making an |
| |
allocation of blended oil for the purposes of section 63 that |
| |
has been selected by the participators in the originating |
| 20 |
fields (including such a method that has been amended in |
| |
accordance with this Schedule). |
| |
(2) | In this Schedule a reference to a suitable method of allocation is a |
| |
reference to a method which secures that allocation of blended oil |
| |
is just and reasonable (for the purposes of the oil taxation |
| 25 |
| |
Method of allocation not suitable |
| |
2 (1) | This paragraph applies if it appears to HMRC that— |
| |
(a) | a method of allocation that has been used in respect of a |
| |
chargeable period was not suitable, or |
| 30 |
(b) | a method of allocation that is proposed to be used in |
| |
respect of a chargeable period would not be suitable. |
| |
(2) | HMRC may give notice to each of the participators in the |
| |
| |
(a) | informing the participators of what appears to HMRC to |
| 35 |
| |
(b) | proposing amendments to the method of allocation. |
| |
(3) | If HMRC give notice, the allocation of the blended oil for the |
| |
purposes of section 63 in respect of the chargeable period is to be |
| |
redetermined, or determined, using the method of allocation as |
| 40 |
amended in accordance with the notice. |
| |
(4) | Sub-paragraph (3) is subject to— |
| |
(a) | the following provisions of this Schedule, |
| |
(b) | any subsequent notice given under this paragraph, and |
| |
|
| |
|
| |
|
(c) | any amendment to the method of allocation made by the |
| |
participators in the originating fields.” |
| |
| |
(a) | for “the Board” (in each place) substitute “HMRC”, and |
| |
(b) | for “paragraph 2(a)” substitute “paragraph 2(2)”. |
| 5 |
(4) | In paragraph 3(2), for “the Board” (in each place) substitute “HMRC”. |
| |
(5) | After paragraph 3(2) insert— |
| |
“(3) | If the method of allocation is amended in accordance with this |
| |
paragraph, the allocation of the blended oil for the purposes of |
| |
section 63 in respect of the chargeable period is to be |
| 10 |
redetermined, or determined, using the method of allocation as so |
| |
| |
(4) | Sub-paragraph (3) is subject to— |
| |
(a) | any subsequent notice given under this paragraph, and |
| |
(b) | any amendment to the method of allocation made by the |
| 15 |
participators in the originating fields.” |
| |
| |
4 | The amendments made by this Schedule have effect in relation to chargeable |
| |
periods beginning after 30 June 2009. |
| |
| 20 |
| |
| |
| |
| |
1 | TCGA 1992 is amended as follows. |
| |
2 | In section 35(3) (assets held on 31 March 1982 (including assets held on 6 |
| 25 |
| |
(a) | in paragraph (c), omit the “or” at the end, and |
| |
(b) | after that paragraph insert— |
| |
“(ca) | where, by virtue of section 195B, 195C or 195E, neither |
| |
a gain nor a loss accrues to the person making the |
| 30 |
| |
3 | In section 55 (assets owned on 31 March 1982 or acquired on a no gain/no |
| |
loss disposal), after subsection (5) insert— |
| |
“(5A) | For the purposes of subsection (5), a disposal is also a no gain/no loss |
| |
disposal if it is one on which, by virtue of section 195B, 195C or 195E, |
| 35 |
neither a gain nor a loss accrues to the person making the disposal; |
| |
but, in such a case, subsection (6)(b) below does not apply.” |
| |
4 | In section 175(2C)(b) (replacement of business assets by members of a |
| |
group), after “applies” insert “or is one where, by virtue of section 195B, |
| |
|
| |
|
| |
|
195C or 195E, neither a gain nor a loss accrues to the person making the |
| |
| |
5 | After section 195 insert— |
| |
| |
(1) | Sections 195B to 195E apply for the purposes of corporation tax on |
| 5 |
| |
| |
“licence-consideration swap” means a case where conditions A, |
| |
| |
“mixed-consideration swap” means a case where conditions A, |
| 10 |
| |
(3) | Condition A is that a company (“company A”) disposes of one or |
| |
more UK licences to another company (“company B”), by way of a |
| |
bargain at arm’s length (“disposal A”). |
| |
(4) | Condition B is that company B disposes of one or more UK licences |
| 15 |
to company A, by way of a bargain at arm’s length (“disposal B”). |
| |
(5) | Condition C is that either or both of the following paragraphs |
| |
| |
(a) | the licence, or at least one of the licences, comprised in |
| |
disposal A relates to a developed area; |
| 20 |
(b) | the licence, or at least one of the licences, comprised in |
| |
disposal B relates to a developed area. |
| |
(6) | Condition D is that both— |
| |
(a) | disposal A is the only consideration given for disposal B, and |
| |
(b) | disposal B is the only consideration given for disposal A. |
| 25 |
(7) | Condition E is that either— |
| |
(a) | disposal A is the only consideration given for disposal B, or |
| |
(b) | disposal B is the only consideration given for disposal A, |
| |
| (and accordingly one of the disposals is part of the consideration |
| |
given for the other disposal). |
| 30 |
(8) | In this section and sections 195B to 196 a reference to disposal of a UK |
| |
| |
(a) | a disposal of an interest in a UK licence, and |
| |
(b) | a disposal of a UK licence, or an interest in a UK licence, only |
| |
so far as the licence relates to part of the licensed area. |
| 35 |
195B | Licence-consideration swap |
| |
(1) | This section applies to a licence-consideration swap. |
| |
(2) | Each company participating in the swap is to be treated as follows. |
| |
(3) | As regards the licence, or each licence, which the company disposes |
| |
of, the company is to be treated as if it had disposed of that licence |
| 40 |
for a consideration of such amount as to secure that on the disposal |
| |
neither a gain nor a loss accrues to the company. |
| |
|
| |
|
| |
|
(4) | In a case where the company acquires only one licence, the company |
| |
is to be treated as if it had acquired the licence for a consideration of |
| |
the same amount as the deemed disposal consideration. |
| |
(5) | In a case where the company acquires two or more licences, as |
| |
regards each licence acquired, the company is to be treated as if it |
| 5 |
had acquired that licence for a consideration of—![equation: cross[times[char[D],char[D],char[C]],over[char[A],times[char[T],char[A]]]]](missing.gif) |
| |
| |
DDC is the deemed disposal consideration; |
| |
A is the value of the licence acquired; |
| |
TA is total value of all the licences acquired. |
| 10 |
(6) | In this section “deemed disposal consideration”, in relation to a |
| |
company participating in the swap, means— |
| |
(a) | the amount of the consideration for which the company is, |
| |
under subsection (3), treated as having disposed of its licence |
| |
(if the company disposes of only one licence), or |
| 15 |
(b) | the aggregate of all such amounts (if the company disposes of |
| |
| |
195C | Company that receives mixed consideration: N exceeds C |
| |
(1) | This section applies to a mixed-consideration swap if— |
| |
(a) | the no gain/no loss loss amount (“N”) of the company that |
| 20 |
receives the mixed consideraion (“company R”), exceeds |
| |
(b) | the amount of non-licence consideration (“C”) which |
| |
| |
(2) | In a case where company R acquires only one licence, company R is |
| |
to be treated as if it had acquired the licence for a consideration of—![equation: plus[(*n*)char[N],minus[char[C]]]](missing.gif) |
| 25 |
(3) | In a case where company R acquires two or more licences, as regards |
| |
each licence acquired, company R is to be treated as if it had acquired |
| |
the licence for a consideration of—![equation: cross[id[plus[char[N],minus[char[C]]]],over[char[A],times[char[T],char[A]]]]](missing.gif) |
| |
| |
A is the value of the licence acquired; |
| 30 |
TA is total value of all the licences acquired. |
| |
(4) | The disposal by company R of a licence under the swap is to be taken |
| |
to be one on which neither a gain nor a loss accrues. |
| |
(5) | But (despite subsection (4)), the disposal by company R is not a no |
| |
gain/no loss disposal for the purposes of section 56. |
| 35 |
(6) | For the purposes of the application of sections 53 and 54, any |
| |
enactment is to be disregarded insofar as it provides that, if the other |
| |
company which acquires a licence under the swap (“company G”) |
| |
subsequently disposes of the licence, company R’s acquisition of the |
| |
licence is to be treated as company G’s acquisition of it. |
| 40 |
|
| |
|
| |
|
(7) | In this section the reference to the no gain/no loss amount of |
| |
company R is a reference to— |
| |
(a) | in a case where company R disposes of only one licence, |
| |
company R’s no gain/no loss amount in relation to that |
| |
| 5 |
(b) | in a case where company R disposes of two or more licences, |
| |
the aggregate of company R’s no gain/no loss amounts in |
| |
relation to all of those disposals. |
| |
195D | Company that receives mixed consideration: N does not exceed C |
| |
(1) | This section applies to a mixed-consideration swap if— |
| 10 |
(a) | the no gain/no loss amount (“N”) of the company that |
| |
receives the mixed consideration (“company R”) does not |
| |
| |
(b) | the amount of non-licence consideration (“C”) which |
| |
| 15 |
(2) | As regards the licence, or each licence, which company R acquires, |
| |
company R is to be treated as if it had acquired the licence for nil |
| |
| |
(3) | In a case where company R disposes of only one licence, company R |
| |
is to be treated as if, on the disposal of the licence, there had arisen a |
| 20 |
gain of—![equation: plus[(*n*)char[C],minus[char[N]]]](missing.gif) |
| |
(4) | In a case where company R disposes of two or more licences, as |
| |
regards each licence disposed of, company R is to be treated as if, on |
| |
the disposal of the licence, there had arisen a gain of—![equation: cross[id[plus[char[C],minus[char[N]]]],over[char[D],times[char[T],char[D]]]]](missing.gif) |
| |
| 25 |
D is the value of the licence disposed of; |
| |
TD is total value of all the licences disposed of. |
| |
195E | Company that gives mixed consideration |
| |
(1) | This section applies to a mixed-consideration swap— |
| |
(a) | whatever the no gain/no loss amount (“N”) of the company |
| 30 |
that gives the mixed consideration (“company G”), and |
| |
(b) | whatever the amount of the non-licence consideration (“C”) |
| |
| |
(2) | In a case where company G acquires only one licence, company G is |
| |
to be treated as if it had acquired the licence for a consideration of—![equation: plus[char[N],char[C]]](missing.gif) |
| 35 |
(3) | In a case where company G acquires two or more licences, as regards |
| |
each licence acquired, company G is to be treated as if it had acquired |
| |
the licence for a consideration of—![equation: cross[id[plus[char[N],char[C]]],over[char[A],times[char[T],char[A]]]]](missing.gif) |
| |
| |
A is the value of the licence acquired; |
| 40 |
|
| |
|
| |
|
TA is total value of all the licences acquired. |
| |
(4) | The disposal by company G of a licence under the swap is to be taken |
| |
to be one on which neither a gain nor a loss accrues. |
| |
(5) | But (despite subsection (4)), the disposal by company G is not a no |
| |
gain/no loss disposal for the purposes of section 56. |
| 5 |
(6) | For the purposes of the application of sections 53 and 54, any |
| |
enactment is to be disregarded insofar as it provides that, if the other |
| |
company which acquires a licence under the swap (“company R”) |
| |
subsequently disposes of the licence, company G’s acquisition of the |
| |
licence is to be treated as company R’s acquisition of it. |
| 10 |
(7) | In this section the reference to the no gain/no loss amount of |
| |
company G is a reference to— |
| |
(a) | in a case where company G disposes of only one licence, |
| |
company G’s no gain/no loss amount in relation to that |
| |
| 15 |
(b) | in a case where company G disposes of two or more licences, |
| |
the aggregate of company G’s no gain/no loss amounts in |
| |
relation to all of those disposals. |
| |
6 (1) | Section 196 (interpretation of sections 194 and 195) is amended as follows. |
| |
(2) | In the heading, for “and 195” substitute “to 195E”. |
| 20 |
(3) | In subsection (1), after “section 194” insert “and this section”. |
| |
(4) | After subsection (1A) insert— |
| |
“(1B) | In sections 195A to 195E, a reference to a UK licence that relates to a |
| |
developed area is a reference to any UK licence apart from one that |
| |
relates to an undeveloped area.” |
| 25 |
(5) | In subsection (2), for “and (1A)” substitute “to (1B)”. |
| |
(6) | In subsection (3), after “(1)” insert “or (1B)”. |
| |
| |
(a) | for “and 195” substitute “to 195E”, |
| |
(b) | after the definition of “licence” insert— |
| 30 |
““licence-consideration swap” has the meaning given in |
| |
| |
(c) | after the definition of “licensee” insert— |
| |
““mixed consideration” means consideration that |
| |
consists partly of disposal of a UK licence; |
| 35 |
“mixed-consideration swap” has the meaning given in |
| |
| |
“no gain/no loss amount”, in relation to a company that |
| |
disposes of a UK licence, means the amount that |
| |
would be taken to be the consideration for the |
| 40 |
disposal if section 56(2) applied to the disposal; |
| |
“non-licence consideration” means consideration that |
| |
does not consist of disposal of a UK licence, as |
| |
determined at the time the swap arrangements are |
| |
| 45 |
|
| |
|
| |
|
“swap arrangements”, in relation to a licence- |
| |
consideration swap or a mixed-consideration swap, |
| |
means the arrangements under which the swap takes |
| |
| |
(8) | After subsection (5A) insert— |
| 5 |
“(5B) | In any of sections 195B to 195E, a reference to the value of a licence |
| |
comprised in disposal A or disposal B (see section 195A) is a |
| |
reference to the value of the licence as determined under the swap |
| |
arrangements at the time the swap arrangements are entered into.” |
| |
7 | In Schedule 3 (assets held on 31 March 1982), in paragraph 1(2) (meaning of |
| 10 |
no gain/no loss disposal), after “provisions” insert “or any of sections 195B, |
| |
| |
8 | The amendments made by this Part have effect in relation to disposals made |
| |
on or after 22 April 2009. |
| |
| 15 |
Reinvestment of ring fence assets |
| |
| |
9 | TCGA 1992 is amended as follows. |
| |
| |
10 | In section 198 (replacement of business assets used in connection with oil |
| 20 |
fields), for subsection (3) substitute— |
| |
| |
(a) | section 152 or 153 applies in relation to any of the |
| |
consideration on a material disposal, and |
| |
(b) | the asset which constitutes the new assets for the purposes of |
| 25 |
that section is a depreciating asset, |
| |
| section 154(2)(b) is to have effect as if the reference to a trade carried |
| |
on by the claimant were a reference solely to the claimant’s ring fence |
| |
| |
Alternative to roll-over relief |
| 30 |
11 | In section 198 (replacement of business assets used in connection with oil |
| |
fields), after subsection (2) insert— |
| |
“(2A) | But subsection (1) is subject to section 198A(3)(a).” |
| |
12 | After that section insert— |
| |
“198A | Ring fence reinvestment: whole consideration reinvested |
| 35 |
(1) | This section applies if a person (“P”) makes a disposal and |
| |
| |
(a) | is a ring fence reinvestment, and |
| |
(b) | qualifies for roll-over relief. |
| |
|
| |
|