|
| |
| |
(2) | P may make a claim under this section in relation to the disposal and |
| |
| |
(3) | If P makes a claim under this section— |
| |
(a) | section 152 does not apply to any of the disposal |
| |
| 5 |
(b) | any gain accruing to P on the disposal is not a chargeable |
| |
| |
(4) | In this section “disposal consideration” means the whole of the |
| |
consideration obtained on the disposal made by P. |
| |
198B | Ring fence reinvestment: part of consideration reinvested |
| 10 |
(1) | This section applies if a person (“P”) makes a disposal and |
| |
| |
(a) | is a ring fence reinvestment, and |
| |
(b) | qualifies for section 153 relief. |
| |
(2) | P may make a claim under this section in relation to the disposal and |
| 15 |
| |
(3) | If P makes a claim under this section— |
| |
(a) | section 153(1)(a) applies in relation to P and the disposal, but |
| |
(b) | section 153(1)(b) does not apply to P and the acquisition. |
| |
198C | Provisional application of sections 198A and 198B |
| 20 |
(1) | This section applies where a person (“P”) carrying on a ring fence |
| |
trade who for a consideration disposes of, or of an interest in, any |
| |
assets (“the old assets”) declares, in P’s return for the chargeable |
| |
period in which the disposal takes place— |
| |
(a) | that the whole or any specified part of the consideration will |
| 25 |
be applied in the acquisition of, or of an interest in, other |
| |
assets (“the new assets”), |
| |
(b) | that the acquisition will take place as mentioned in section |
| |
| |
(c) | that the disposal and acquisition will be a ring fence |
| 30 |
| |
(d) | that P intends to make a claim under section 198A or 198B in |
| |
relation to the disposal and acquisition, and |
| |
(e) | that P has not made, and will not make, a declaration under |
| |
section 153A in relation to the disposal and acquisition. |
| 35 |
(2) | Until the declaration ceases to have effect, section 198A or 198B |
| |
applies as if the acquisition had taken place and the person had made |
| |
a claim under that section. |
| |
(3) | The declaration ceases to have effect as follows— |
| |
(a) | if and to the extent that it is withdrawn before the relevant |
| 40 |
day, or is superseded before that day by a valid claim made |
| |
under section 198A or 198B, on the day on which it is so |
| |
withdrawn or superseded, and |
| |
(b) | if and to the extent that it is not so withdrawn or superseded, |
| |
| 45 |
| |
| |
|
| |
| |
(4) | On the declaration ceasing to have effect in whole or in part, all |
| |
| |
(a) | are to be made by making or amending assessments or by |
| |
repayment or discharge of tax, and |
| |
(b) | are to be so made despite any limitation on the time within |
| 5 |
which assessments or amendments may be made. |
| |
| |
(a) | P makes a declaration under this section, and |
| |
(b) | the disposal and acquisition is not a ring fence reinvestment, |
| |
but qualifies for roll-over relief or section 153 relief, |
| 10 |
| on P making a claim, the declaration is to have effect as also a |
| |
declaration under section 153A. |
| |
(6) | In this section “the relevant day” means— |
| |
(a) | in relation to capital gains tax, the third anniversary of the |
| |
31st January next following the year of assessment in which |
| 15 |
the disposal of, or of the interest in, the old assets took place, |
| |
| |
(b) | in relation to corporation tax, the fourth anniversary of the |
| |
last day of the accounting period in which that disposal took |
| |
| 20 |
(7) | Section 152(6), (10) and (11) apply for the purposes of this section as |
| |
they apply for the purposes of section 152. |
| |
| |
(1) | If P makes a claim under section 198A or 198B, no other relevant |
| |
claim may be made in respect of the relevant acquisition. |
| 25 |
(2) | P may make a claim under section 198A or 198B (“the new claim”), if |
| |
P has previously made a claim under section 152 or 153 (“the |
| |
previous claim”) in respect of the relevant acquisition. |
| |
(3) | But P may make the new claim only if the previous claim is |
| |
withdrawn at or before the time the new claim is made. |
| 30 |
(4) | If the new claim is made in accordance with subsections (2) and (3), |
| |
all necessary adjustments— |
| |
(a) | are to be made by making or amending assessments or by |
| |
repayment or discharge of tax, and |
| |
(b) | are to be so made despite any limitation on the time within |
| 35 |
which assessments or amendments may be made. |
| |
| |
“relevant acquisition” means the acquisition of the new assets |
| |
that is comprised in the disposal and acquisition to which a |
| |
claim under section 198A or 198B or declaration under |
| 40 |
| |
“relevant claim” means a claim under section 152, 153, 198A or |
| |
| |
198E | Ring fence reinvestments and disposal consideration |
| |
(1) | This section applies for the purposes of sections 198A to 198G. |
| 45 |
| |
| |
|
| |
| |
(2) | A disposal and acquisition is a ring fence reinvestment if— |
| |
| |
(i) | a material disposal, or |
| |
(ii) | a disposal of a UK licence which relates to an |
| |
| 5 |
(b) | the old assets were used only for the purposes of P’s ring |
| |
| |
(c) | the new assets are taken into use, and used only, for the |
| |
purposes of one or more of the following trades— |
| |
(i) | P’s ring fence trade; |
| 10 |
(ii) | if P is a member of a group of companies (within the |
| |
meaning given in section 170), a ring fence trade of |
| |
another member of that group, and |
| |
(d) | the new assets are oil assets. |
| |
(3) | If the disposal consists of— |
| 15 |
(a) | disposal of a licence to which section 195D(3) applies, or |
| |
(b) | disposal of two or more licences to which section 195D(4) |
| |
| |
| the consideration for the disposal is to be taken to be the whole of the |
| |
non-licence consideration obtained on the disposal (which is referred |
| 20 |
to as “C” in section 195D). |
| |
(4) | Accordingly, in sections 198A to 198G (including section 198A(4)), |
| |
any reference to the consideration obtained on the disposal has effect |
| |
subject to subsection (3). |
| |
(5) | Each of the following is an “oil asset” for the purposes of this |
| 25 |
| |
(a) | an interest in oil to be won from an oil field, |
| |
(b) | an asset used in connection with an oil field, |
| |
(c) | a structure which is to be placed on the seabed of the United |
| |
Kingdom continental shelf, |
| 30 |
(d) | an asset used wholly in the winning of oil, or in the |
| |
measuring of oil won, in the United Kingdom otherwise than |
| |
| |
(e) | an asset used for the initial treatment or storage of oil in the |
| |
| 35 |
(f) | an asset used for the transportation of oil from an oil field to |
| |
| |
(g) | a UK licence which relates to an undeveloped area. |
| |
(6) | Section 12 of the Oil Taxation Act 1975 (interpretation of Part 1 of that |
| |
Act) applies for the interpretation of subsection (5)(a) to (f). |
| 40 |
(7) | Expressions used in this section and in section 152 have the same |
| |
meanings in this section as in section 152. |
| |
(8) | In this section a reference to a UK licence which relates to an |
| |
undeveloped area has the same meaning as in section 194 (see section |
| |
| 45 |
| |
“material disposal” has the meaning given in section 197; |
| |
| |
| |
|
| |
| |
“ring fence trade” has the meaning given in section 198. |
| |
198F | Qualification for roll-over relief |
| |
(1) | This section applies for the purposes of sections 198A and 198B and |
| |
| |
(2) | A disposal and acquisition qualifies for roll-over relief if— |
| 5 |
(a) | the consideration for the disposal is applied in an acquisition |
| |
as mentioned in section 152(1), and |
| |
(b) | section 152(1)(a) and (b) would apply to the disposal and |
| |
acquisition if the appropriate claim were made. |
| |
(3) | Subsections (4) to (6) apply in deciding whether a disposal and |
| 10 |
acquisition is one that qualifies for roll-over relief. |
| |
(4) | Section 152(8) is to be disregarded. |
| |
(5) | Section 198A is to be disregarded. |
| |
(6) | Subject to subsections (4) to (5), all the circumstances are to be taken |
| |
into account, including section 153(1) and section 198(1) and (2). |
| 15 |
198G | Qualification for section 153 relief |
| |
(1) | This section applies for the purposes of sections 198B and 198C. |
| |
(2) | A disposal and acquisition qualifies for section 153 relief if— |
| |
(a) | section 153(1) applies to part of the amount or value of the |
| |
consideration for the disposal, |
| 20 |
(b) | section 153(1)(a) and (b) would apply to the disposal and |
| |
acquisition if the appropriate claim were made, and |
| |
(c) | the disposal and acquisition would qualify for roll-over relief |
| |
but for the disapplication of section 152(1) by section 153(1). |
| |
(3) | Subsections (4) to (6) apply in deciding whether a disposal and |
| 25 |
acquisition is one that qualifies for section 153 relief. |
| |
(4) | Section 153(2) has effect subject to section 198F(4) and (5). |
| |
(5) | Section 198B is to be disregarded. |
| |
(6) | Subject to subsections (4) and (5), all the circumstances are to be |
| |
taken into account, including section 198(1).” |
| 30 |
13 | The amendments made by this Part have effect in relation to disposals made |
| |
on or after 22 April 2009 (whether the acquisition in which the consideration |
| |
is reinvested takes place before, on or after that date). |
| |
| |
| |
|
