|
| |
|
(i) | fall (or would fall) to be treated, in the accounts of the lessee or |
| |
a person connected with the lessee, as a finance lease or a loan, |
| |
| |
(ii) | are comprised in arrangements which fall (or would fall) to be |
| |
| 5 |
(7) | For the purposes of applying subsection (6)(b), the lessee and any person |
| |
connected with the lessee are to be treated as being companies which are |
| |
incorporated in a part of the United Kingdom. |
| |
(8) | Section 1176(1) (meaning of “connected” persons) does not apply for the |
| |
purposes of this section. |
| 10 |
| |
“accounts”, in relation to a company, includes accounts which— |
| |
(a) | relate to two or more companies of which that company is one, |
| |
| |
(b) | are drawn up in accordance with generally accepted accounting |
| 15 |
| |
“debtor relationship” has the meaning given by section 302(6) of CTA |
| |
| |
“exchange gains” and “exchange losses” are to be read in accordance with |
| |
section 475 of CTA 2009, and |
| 20 |
“long funding operating lease” means a long funding operating lease for |
| |
the purposes of Part 2 of CAA 2001 (see section 70YI(1) of that Act). |
| |
332 | Assessment, recovery and postponement of supplementary charge |
| |
(1) | The provisions of section 330(1) relating to the charging of a sum as if it were |
| |
an amount of corporation tax are be taken as applying all enactments applying |
| 25 |
generally to corporation tax. |
| |
(2) | But this is subject to— |
| |
(a) | the provisions of the Taxes Acts, |
| |
(b) | any necessary modifications, and |
| |
| 30 |
(3) | The enactments mentioned in subsection (1) include— |
| |
(a) | those relating to returns of information and the supply of accounts, |
| |
| |
(b) | those relating to the assessing, collecting and receiving of corporation |
| |
| 35 |
(c) | those conferring or regulating a right of appeal, and |
| |
(d) | those concerning administration, penalties, interest on unpaid tax and |
| |
priority of tax in cases of insolvency under the law of any part of the |
| |
| |
(4) | Accordingly TMA 1970 is to have effect as if any reference to corporation tax |
| 40 |
included a sum chargeable under section 330(1) as if it were an amount of |
| |
corporation tax (but this does not limit subsections (1) to (3)). |
| |
(5) | In the Corporation Tax (Treatment of Unrelieved Surplus Advance |
| |
Corporation Tax) Regulations 1999 (S.I. 1999/358) or any further regulations |
| |
made under section 32 of FA 1998 (unrelieved surplus advance corporation |
| 45 |
| |
|
| |
|
| |
|
(a) | references to corporation tax do not include a sum chargeable on a |
| |
company under section 330(1) as if it were corporation tax, and |
| |
(b) | references to profits charged to corporation tax do not include adjusted |
| |
ring fence profits, within the meaning of section 330. |
| |
(6) | In this section “the Taxes Acts” has the same meaning as in TMA 1970 (see |
| 5 |
section 118(1) of that Act). |
| |
| |
Reduction of supplementary charge for certain new oil fields |
| |
Reduction of adjusted ring fence profits |
| |
333 | Reduction of adjusted ring fence profits |
| 10 |
(1) | A company’s adjusted ring fence profits for an accounting period are to be |
| |
reduced by the amount of the company’s pool of field allowances for that |
| |
accounting period (see sections 334 to 336). |
| |
(2) | But, if the profits are less than the amount of the pool, the profits are to be |
| |
| 15 |
| |
334 | Company’s pool of field allowances |
| |
A company’s pool of field allowances for an accounting period (“the relevant |
| |
accounting period”) is—
|
| |
| 20 |
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 sections 335 and 336), and |
| |
R is the aggregate of the amounts of field allowances for new oil fields |
| |
which the company holds (see sections 337 to 339) that are activated in |
| 25 |
| |
(a) | the relevant accounting period (see sections 340 and 341), and |
| |
(b) | reference periods that fall within the relevant accounting period |
| |
| |
335 | Carrying part of pool of field allowances into following period |
| 30 |
(1) | This section 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 section 333(2). |
| |
(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—
|
| 5 |
| |
F is the amount of the company’s pool of field allowances for accounting |
| |
| |
P is the amount of the adjusted ring fence profits for accounting period 1. |
| |
336 | Carrying whole of pool of field allowances into following period |
| 10 |
(1) | This section 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 period |
| |
is to be carried into the following accounting period. |
| 15 |
Field allowance: when held and unactivated amount |
| |
337 | Initial licensee to hold a field allowance |
| |
(1) | A company that is an initial licensee in a new oil field is to hold a field |
| |
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—
|
| 20 |
| |
T is the amount of the total field allowance for the field (see section 356), |
| |
| |
S is the share of the equity in the field which the initial licensee has at the |
| |
beginning of the authorisation day. |
| 25 |
338 | Holding a field allowance on acquisition of equity share |
| |
For provision about holding a field allowance by virtue of the acquisition of a |
| |
share of the equity in a new oil field, see section 347(2). |
| |
|
| |
|
| |
|
339 | Unactivated amount of field allowance |
| |
(1) | This section applies if a company holds a field allowance for a new oil field by |
| |
virtue of section 337 or 347(2). |
| |
(2) | The unactivated amount of that allowance at a particular time (“the relevant |
| |
time”) is
|
| 5 |
| |
R is the amount of the field allowance which the company held before the |
| |
relevant time by virtue of section 337 or 347(2), |
| |
E is the total amount of the field allowance received before the relevant |
| |
time by virtue of section 347(1) (company already holding field |
| 10 |
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 |
| |
D is the total amount of reductions in the field allowance made before the |
| 15 |
relevant time by virtue of section 346 (company disposes of equity |
| |
| |
(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 |
| 20 |
340 | Introduction to section 341 |
| |
(1) | Section 341 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 |
| |
| 25 |
(3) | Condition B is that the company’s share of the equity in the field is the same |
| |
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 |
| 30 |
| |
341 | Activation of field allowance |
| |
(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 |
| 35 |
| |
(a) | the relevant activation limit, |
| |
|
| |
|
| |
|
(b) | the company’s relevant income from the field in the accounting period, |
| |
| |
(c) | the unactivated amount of the field allowance which the company |
| |
holds at the beginning of the accounting period. |
| |
(3) | The relevant activation limit is—
|
| 5 |
| |
T is the amount of the total field allowance for the field (see section 356), |
| |
E is the company’s share of the equity in the field during the accounting |
| |
| |
N is the number of days in the accounting period. |
| 10 |
Change in equity share: activation of allowance |
| |
342 | Introduction to sections 343 and 344 |
| |
(1) | Sections 343 and 344 apply 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 |
| 15 |
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 |
| |
allowance for the field at any time during the accounting period. |
| 20 |
(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, sections 343 and 344 (in particular |
| |
provisions relating to the beginning or end of a day) have effect subject to the |
| 25 |
| |
| |
(1) | For the purposes of section 344, the accounting period, or (if the company is not |
| |
a licensee for the whole of the accounting period) the part or parts of the |
| |
accounting period for which the company is a licensee, is to be divided into |
| 30 |
| |
(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 is |
| |
a licensee in the new oil field. |
| 35 |
|
| |
|
| |
|
(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. |
| |
(6) | Condition D is that each day in the period falls within the accounting period. |
| 5 |
344 | Activation of field allowance |
| |
(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 |
| |
| 10 |
(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 |
| |
holds at the beginning of the reference period. |
| 15 |
(3) | The relevant activation limit is
|
| |
| |
T is the amount of the total field allowance for the field (see section 356), |
| |
E is the company’s share of the equity in the field during the reference |
| |
| 20 |
R is the number of days in the reference period. |
| |
(4) | The company’s relevant income from the field in the reference period is
|
| |
| |
I is the company’s relevant income from the field in the whole of the |
| |
| 25 |
R is the number of days in the reference period, and |
| |
L is the number of days in the accounting period for which the company |
| |
is a licensee in the new oil field. |
| |
Change in equity share: transfer of field allowance |
| |
345 | Introduction to sections 346 and 347 |
| 30 |
(1) | Sections 346 and 347 apply if the following conditions are met. |
| |
|
| |
|
| |
|
(2) | Condition A is that a company that is a licensee in a new oil field (“the |
| |
transferor”) disposes of the whole or a part of its share of the equity in the new |
| |
oil field (and in section 347 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 |
| 5 |
unactivated amount of field allowance for the new oil field. |
| |
(4) | Subsection (5) applies when— |
| |
(a) | determining (for the purposes of this section) whether a transferor |
| |
holds an unactivated amount of field allowance immediately before the |
| |
disposal (“the relevant time”), and |
| 10 |
(b) | determining (for the purposes of section 346), the unactivated amount |
| |
of field allowance which a transferor holds at the relevant time; |
| |
| but it applies only if an amount of field allowance for the new oil field (“the |
| |
relevant amount”) has, by virtue of section 344, been activated in respect of the |
| |
reference period that ends because of the disposal. |
| 15 |
(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, sections 346 and 347 (in particular |
| |
provisions relating to the beginning or end of a day) have effect subject to the |
| 20 |
| |
346 | Reduction of field allowance if equity disposed of |
| |
(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—
|
| 25 |
| |
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 |
| |
| 30 |
E2 is the transferor’s share of the equity in the new oil field immediately |
| |
| |
(2) | This section has effect at the end of the day on which the disposal takes place. |
| |
347 | Acquisition of field allowance if equity acquired |
| |
(1) | If a transferee holds a field allowance for the new oil field immediately before |
| 35 |
the disposal, the unactivated amount of the field allowance is to be increased |
| |
by the amount calculated in accordance with subsection (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 for the new oil |
| |
| 40 |
|
| |
|