|
| |
|
| |
| |
Supplementary charge: reduction for certain new oil fields |
| |
| |
Reduction of adjusted ring fence profits |
| |
1 (1) | A company’s adjusted ring fence profits for an accounting period are to be |
| 5 |
reduced by the amount of the company’s pool of field allowances for that |
| |
accounting period (see Part 2). |
| |
(2) | But, if the profits are less than the amount of the pool, the profits are to be |
| |
| |
| 10 |
| |
Company’s pool of field allowances |
| |
2 | A company’s pool of field allowances for an accounting period (“the |
| |
relevant accounting period”) is—![equation: plus[char[P],char[R]]](missing.gif) |
| |
| 15 |
P is the amount of the company’s pool of field allowances for the |
| |
previous accounting period that has been carried into the relevant |
| |
accounting period (see paragraphs 3 and 4), and |
| |
R is the aggregate of the amounts of field allowances for new oil fields |
| |
which the company holds (see Part 3) that are activated in respect |
| 20 |
| |
(a) | the relevant accounting period (see Part 4), and |
| |
(b) | reference periods that fall within the relevant accounting |
| |
| |
Carrying part of pool of field allowances into following period |
| 25 |
3 (1) | This paragraph applies if— |
| |
(a) | a company has a pool of field allowances for an accounting period |
| |
(“accounting period 1”), and |
| |
(b) | the company’s adjusted ring fence profits for accounting period 1 are |
| |
reduced to nil in accordance with paragraph 1(2). |
| 30 |
(2) | A part of the company’s pool of field allowances for accounting period 1 is |
| |
to be carried into the following accounting period (“accounting period 2”). |
| |
(3) | The part to be carried into accounting period 2 is—![equation: plus[char[F],minus[char[P]]]](missing.gif) |
| |
| |
F is the amount of the company’s pool of field allowances for |
| 35 |
| |
P is the amount of the adjusted ring fence profits for accounting period |
| |
| |
|
| |
|
| |
|
Carrying whole of pool of field allowances into following period |
| |
4 (1) | This paragraph applies if a company— |
| |
(a) | has a pool of field allowances for an accounting period, but |
| |
(b) | has no adjusted ring fence profits for the accounting period. |
| |
(2) | The whole of the company’s pool of field allowances for the accounting |
| 5 |
period is to be carried into the following accounting period. |
| |
| |
Field allowance: when held and unactivated amount |
| |
Initial licensee to hold a field allowance |
| |
5 (1) | A company that is an initial licensee in a new oil field is to hold a field |
| 10 |
allowance for that field as from the beginning of the authorisation day. |
| |
(2) | The amount of the field allowance which the licensee is to hold at that time |
| |
is—![equation: cross[char[T],char[S]]](missing.gif) |
| |
| |
T is the amount of the total field allowance for the field (see paragraph |
| 15 |
| |
S is the share of the equity in the field which the initial licensee has at |
| |
the beginning of the authorisation day. |
| |
Holding a field allowance on acquisition of equity share |
| |
6 | For provision about holding a field allowance by virtue of the acquisition of |
| 20 |
a share of the equity in a new oil field, see paragraph 15(2). |
| |
Unactivated amount of a field allowance |
| |
7 (1) | This paragraph applies if a company holds a field allowance for a new oil |
| |
field by virtue of paragraph 5 or 15(2). |
| |
(2) | The unactivated amount of that allowance at a particular time (“the relevant |
| 25 |
time”) is—![equation: plus[id[plus[char[R],char[E]]],minus[id[plus[char[A],char[D]]]]]](missing.gif) |
| |
| |
R is the amount of the field allowance which the company held before |
| |
the relevant time by virtue of paragraph 5 or 15(2), |
| |
E is the total amount of the field allowance received before the relevant |
| 30 |
time by virtue of paragraph 15(1) (company already holding field |
| |
allowance acquires equity share), |
| |
A is the total amount of the field allowance activated in respect of— |
| |
(a) | accounting periods ending before the relevant time, or |
| |
(b) | reference periods ending before the relevant time, and |
| 35 |
D is the total amount of reductions in the field allowance made before |
| |
the relevant time by virtue of paragraph 14 (company disposes of |
| |
| |
|
| |
|
| |
|
(3) | A company ceases to hold a field allowance for a new oil field if the |
| |
unactivated amount of that allowance falls to nil. |
| |
| |
No change in equity share: activation of allowance |
| |
| 5 |
8 (1) | This Part applies to a company in respect of a new oil field and an accounting |
| |
period if the following conditions are met. |
| |
(2) | Condition A is that the company is a licensee in the field for the whole of the |
| |
| |
(3) | Condition B is that the company’s share of the equity in the field is the same |
| 10 |
during the whole of the accounting period. |
| |
(4) | Condition C is that the company holds an unactivated amount of field |
| |
allowance for the field at the beginning of the accounting period. |
| |
(5) | Condition D is that the company has relevant income from the new oil field |
| |
in the accounting period. |
| 15 |
Activation of field allowance |
| |
9 (1) | An amount of the company’s field allowance for the new oil field is to be |
| |
activated in respect of the accounting period. |
| |
(2) | The amount of the field allowance to be activated is the smallest of the |
| |
| 20 |
(a) | the relevant activation limit, |
| |
(b) | the company’s relevant income from the field in the accounting |
| |
| |
(c) | the unactivated amount of the field allowance which the company |
| |
holds at the beginning of the accounting period. |
| 25 |
(3) | The relevant activation limit is—![equation: cross[cross[over[char[T],num[5.0000000000000000,"5"]],char[E]],over[char[N],num[
365.0000000000000000,"365"]]]](missing.gif) |
| |
| |
T is the amount of the total field allowance for the field (see paragraph |
| |
| |
E is the company’s share of the equity in the field during the accounting |
| 30 |
| |
N is the number of days in the accounting period. |
| |
| |
Change in equity share: activation of allowance |
| |
| 35 |
10 (1) | This Part applies to a company in respect of a new oil field and an accounting |
| |
period if the following conditions are met. |
| |
|
| |
|
| |
|
(2) | Condition A is that the company is a licensee in the field for the whole, or for |
| |
part, of the accounting period. |
| |
(3) | Condition B is that the company’s share of the equity in the field is different |
| |
at different times during the accounting period. |
| |
(4) | Condition C is that the company holds an unactivated amount of field |
| 5 |
allowance for the field at any time during the accounting period. |
| |
(5) | Condition D is that the company has relevant income from the field in the |
| |
| |
(6) | In a case where a company has three or more different shares of the equity |
| |
in a new oil field during a particular day, this Part (in particular provisions |
| 10 |
relating to the beginning or end of a day) has effect subject to the necessary |
| |
| |
| |
11 (1) | For the purposes of this Part, the accounting period, or (if the company is not |
| |
a licensee for the whole of the accounting period) the part or parts of the |
| 15 |
accounting period for which the company is a licensee, is to be divided into |
| |
| |
(2) | A reference period is a period of consecutive days that meets the following |
| |
| |
(3) | Condition A is that, at the beginning of each day in the period, the company |
| 20 |
is a licensee in the new oil field. |
| |
(4) | Condition B is that, at the beginning of each day in the period, the |
| |
company’s share of the equity in the field is the same. |
| |
(5) | Condition C is that, at the beginning of the first day of the period, the |
| |
company holds an unactivated amount of field allowance for the field. |
| 25 |
(6) | Condition D is that each day in the period falls within the accounting period. |
| |
Activation of field allowance |
| |
12 (1) | An amount of the company’s field allowance for the new oil field is to be |
| |
activated in respect of each reference period. |
| |
(2) | The amount of the field allowance to be activated is the smallest of the |
| 30 |
| |
(a) | the relevant activation limit, |
| |
(b) | the company’s relevant income from the field in the reference period, |
| |
| |
(c) | the unactivated amount of the field allowance which the company |
| 35 |
holds at the beginning of the reference period. |
| |
(3) | The relevant activation limit is—![equation: cross[cross[over[char[T],num[5.0000000000000000,"5"]],char[E]],over[char[R],num[
365.0000000000000000,"365"]]]](missing.gif) |
| |
| |
T is the amount of the total field allowance for the field (see paragraph |
| |
| 40 |
|
| |
|
| |
|
E is the company’s share of the equity in the field during the reference |
| |
| |
R is the number of days in the reference period. |
| |
(4) | The company’s relevant income from the field in the reference period is—![equation: cross[char[I],over[char[R],char[L]]]](missing.gif) |
| |
| 5 |
I is the company’s relevant income from the field in the whole of the |
| |
| |
R is the number of days in the reference period; |
| |
L is the number of days in the accounting period for which the |
| |
company is a licensee in the new oil field. |
| 10 |
| |
Change in equity share: transfer of field allowance |
| |
| |
13 (1) | This Part applies if the following conditions are met. |
| |
(2) | Condition A is that a company that is a licensee in a new oil field (“the |
| 15 |
transferor”) disposes of the whole or a part of its share of the equity in the |
| |
new oil field (and in this Part each of those to which a share of the equity is |
| |
disposed of is referred to as “a transferee”). |
| |
(3) | Condition B is that, immediately before the disposal, the transferor holds an |
| |
unactivated amount of field allowance for the new oil field. |
| 20 |
(4) | Sub-paragraph (5) applies when— |
| |
(a) | determining (for the purposes of this paragraph) whether a |
| |
transferor holds an unactivated amount of field allowance |
| |
immediately before the disposal (“the relevant time”), and |
| |
(b) | determining (for the purposes of paragraph 14) the unactivated |
| 25 |
amount of field allowance which a transferor holds at the relevant |
| |
| |
| but it applies only if an amount of field allowance for the new oil field (“the |
| |
relevant amount”) has, by virtue of paragraph 12, been activated in respect |
| |
of the reference period that ends because of the disposal. |
| 30 |
(5) | When making the determination, the relevant amount of the field allowance |
| |
must be treated as having been activated at a time before the relevant time. |
| |
(6) | In a case where a company has three or more different shares of the equity |
| |
in a new oil field during a particular day, this Part (in particular provisions |
| |
relating to the beginning or end of a day) has effect subject to the necessary |
| 35 |
| |
|
| |
|
| |
|
Reduction of field allowance if equity disposed of |
| |
14 (1) | The unactivated amount of the field allowance for the new oil field which |
| |
the transferor holds immediately before the disposal is to be reduced by the |
| |
following amount—![equation: cross[char[F],over[plus[times[char[E],num[1.0000000000000000,"1"]],minus[times[char[
E],num[2.0000000000000000,"2"]]]],times[char[E],num[1.0000000000000000,"1"]]]]](missing.gif) |
| |
| 5 |
F is the unactivated amount of the field allowance which the transferor |
| |
holds immediately before the disposal, |
| |
E1 is the transferor’s share of the equity in the new oil field immediately |
| |
| |
E2 is the transferor’s share of the equity in the new oil field immediately |
| 10 |
| |
(2) | This paragraph has effect at the end of the day on which the disposal takes |
| |
| |
Acquisition of field allowance if equity acquired |
| |
15 (1) | If a transferee holds a field allowance for the new oil field immediately |
| 15 |
before the disposal, the unactivated amount of the field allowance is to be |
| |
increased by the amount calculated in accordance with sub-paragraph (4). |
| |
(2) | If a transferee does not hold a field allowance for the new oil field |
| |
immediately before the disposal, the transferee is to hold a field allowance |
| |
| 20 |
(3) | The amount of the field allowance which the transferee is to hold is |
| |
calculated in accordance with sub-paragraph (4). |
| |
(4) | The amount referred to in sub-paragraphs (1) and (3) is—![equation: cross[char[R],over[times[char[E],num[3.0000000000000000,"3"]],plus[times[char[E],
num[1.0000000000000000,"1"]],minus[times[char[E],num[2.0000000000000000,"2"]]]]]]](missing.gif) |
| |
| |
R is the amount of the reduction determined in accordance with |
| 25 |
| |
E3 is the share of the equity in the new oil field that the transferee has |
| |
acquired from the transferor, and |
| |
E1 and E2 are the same as in paragraph 14. |
| |
(5) | This paragraph has effect at the end of the day on which the disposal takes |
| 30 |
| |
| |
| |
| |
16 | If there is any alteration in a company’s adjusted ring fence profits for an |
| 35 |
accounting period after this Schedule has had effect in relation to the profits, |
| |
any necessary adjustments to the operation of this Schedule (whether in |
| |
relation to the profits or otherwise) are to be made (including any necessary |
| |
|
| |
|
| |
|
adjustments to the effect of Part 1 on the profits or to the calculation of the |
| |
company’s pool of field allowances for a subsequent accounting period). |
| |
| |
17 (1) | The Commissioners for Her Majesty’s Revenue and Customs may by order |
| |
make provision about the oil fields that are qualifying oil fields for the |
| 5 |
purposes of this Schedule |
| |
(2) | The Commissioners for Her Majesty’s Revenue and Customs may by order |
| |
make provision about the amount of the total field allowance for any |
| |
description of new oil field (whether or not provision has been made under |
| |
sub-paragraph (1) about that description of new oil field). |
| 10 |
(3) | An order under this paragraph may, in particular, amend any or all of |
| |
| |
(4) | An order under this paragraph is to be made by statutory instrument. |
| |
(5) | No order may be made under this paragraph unless a draft of the instrument |
| |
containing it has been laid before, and approved by a resolution of, the |
| 15 |
| |
| |
| |
| |
18 | In this Schedule “new oil field” means an oil field— |
| 20 |
(a) | which is a qualifying oil field, and |
| |
(b) | whose development is authorised at any time on or after 22 April |
| |
| |
| |
19 (1) | In this Schedule a reference to authorisation of development of an oil field is |
| 25 |
a reference to a national authority— |
| |
(a) | granting a licensee consent for development for the field, |
| |
(b) | serving on a licensee a programme of development for the field, or |
| |
(c) | approving a programme of development for the field. |
| |
| 30 |
“consent for development”, in relation to an oil field, does not include |
| |
consent which is limited to the purpose of testing the characteristics |
| |
| |
“development”, in relation to an oil field, means winning oil from the |
| |
field otherwise than in the course of searching for oil or drilling |
| 35 |
| |
“national authority” means— |
| |
(a) | the Secretary of State, or |
| |
(b) | a Northern Ireland Department. |
| |
|
| |
|