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| PRT instalments. |
99. - (1) In paragraph 3 of Schedule 19 to the Finance Act 1982 (months in which instalments may be withheld)-
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(a) in sub-paragraph (1), at the beginning there shall be inserted "Subject to sub-paragraph (1A) below," and after "month" there shall be inserted "(the relevant month)"; and |
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(b) after that sub-paragraph there shall be inserted the following sub-paragraph- |
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"(1A) Sub-paragraph (1) above does not apply if the relevant month is a month in which any consideration (whether in the nature of income or capital) is received or receivable by the participator in respect of any such matter as is mentioned in paragraph (a) or (b) of section 6(2) of the Oil Taxation Act 1983 (chargeable tariff receipts)."
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(2) Subsection (1) above applies for the purpose of determining whether instalments are payable in respect of chargeable periods ending on or after 31st December 1999.
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| Sale and lease-back: ring fence profits. |
100. - (1) After section 494 of the Taxes Act 1988 there shall be inserted the following section-
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| "Sale and lease-back. |
494AA. - (1) This section applies where-
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(a) a company ("the seller") carrying on a trade has disposed of an asset which was used for the purposes of that trade, or an interest in such an asset; |
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(b) the asset is used, under a lease, by the seller or a company associated with the seller ("the lessee") for the purposes of a ring fence trade carried on by the lessee; and |
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(c) the lessee uses the asset before the end of the period of two years beginning with the disposal. |
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(2) Subject to subsection (4) below, subsection (3) below applies to so much (if any) of the expenditure incurred by the lessee under the lease as-
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(a) falls, in accordance with normal accountancy practice, to be treated in the accounts of the lessee as a finance charge; or |
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(b) would so fall if the lessee were a company incorporated in the United Kingdom. |
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(3) The expenditure shall not be allowable in computing for the purposes of Schedule D the profits of the ring fence trade.
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(4) Expenditure shall not be disallowed by virtue of subsection (3) above to the extent that the disposal referred to in subsection (1) above is made for a consideration which-
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(a) is used to meet expenditure incurred by the seller in carrying on oil extraction activities or in acquiring oil rights otherwise than from a company associated with the seller; or |
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(b) is appropriated to meeting expenditure to be so incurred by the seller. |
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(5) Where any expenditure-
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(a) would apart from subsection (3) above be allowable in computing for the purposes of Schedule D the profits of the ring fence trade for an accounting period, but |
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(b) by virtue of that subsection is not so allowable, |
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that expenditure shall be brought into account for the purposes of Chapter II of Part IV of the Finance Act 1996 as if it were a non-trading debit in respect of a loan relationship of the lessee for that accounting period.
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(6) In this section, "lease", in relation to an asset, has the same meaning as in sections 781 to 784."
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(2) Subject to subsection (3) below, this section applies to assets, or interests in assets, disposed of on or after 9th March 1999.
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(3) This section does not apply to assets, or interests in assets, disposed of pursuant to an agreement made before that date if-
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(a) the agreement is not conditional; or |
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(b) the agreement is conditional and the condition is satisfied before that date. |
| Pipe-line elections. |
101. - (1) In subsection (1)(b) of section 233 of the Finance Act 1994 (relief for tariff receipts from participator in non-taxable field)-
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(a) for "a participator in a non-taxable field" there shall be substituted "any person", and |
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(b) for "in connection with that non-taxable field" there shall be substituted "otherwise than in connection with a taxable field". |
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(2) Subsection (1) above applies to sums received or receivable in any chargeable period ending on or after 31st December 1999.
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| PRT returns. |
102. - (1) In paragraph 2 of Schedule 2 to the Oil Taxation Act 1975 (returns by participators)-
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(a) in sub-paragraph (1) (returns must be delivered within two months of the end of a chargeable period), after "the period" there shall be inserted "or within such longer period as the Board may allow"; and |
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(b) after sub-paragraph (4) there shall be inserted the following sub-paragraph- |
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"(5) The power of the Board to allow an extension of time under sub-paragraph (1) above shall include power-
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(a) to allow an extension for an indefinite period; and |
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(b) to provide for the period of any extension to end at such time as may be stipulated in a notice given by the Board." |
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(2) In paragraph 5 of that Schedule (returns by the responsible person)-
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(a) in sub-paragraph (1) (returns must be delivered within one month of the end of a chargeable period), after "the period" there shall be inserted "or within such longer period as the Board may allow"; and |
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(b) after sub-paragraph (3) there shall be inserted the following sub-paragraph- |
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"(4) The power of the Board to allow an extension of time under sub-paragraph (1) above shall include power-
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(a) to allow an extension for an indefinite period; and |
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(b) to provide for the period of any extension to end at such time as may be stipulated in a notice given by the Board." |
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(3) After paragraph 12 of that Schedule there shall be inserted the following paragraph-
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| "12A. - (1) Where-
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(a) the Board has extended the period for the delivery of any return that is required under paragraph 2 of this Schedule to be delivered for any chargeable period, and |
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(b) the relevant time falls more than one year after the end of the chargeable period, |
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the period within which the Board may make an assessment under this Schedule for that chargeable period shall not expire before the end of the period of five years beginning with the relevant time.
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(2) In this paragraph "the relevant time" means the earlier of-
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(a) the time which, as a result of the extension, is the latest time for the delivery of the return; and |
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(b) the time when the return is delivered." |
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(4) In paragraph 2 of Schedule 5 to that Act, after sub-paragraph (6) there shall be inserted the following sub-paragraphs-
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"(7) Where-
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(a) the claim period in which any expenditure allowable under section 3 or 4 of this Act for an oil field is incurred coincides with or includes a chargeable period, and |
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(b) the Board has extended the period for the delivery of the return that is required under paragraph 5 of Schedule 2 to this Act to be delivered for that chargeable period by the responsible person, and |
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(c) the relevant time falls more than four years after the end of the claim period, |
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sub-paragraph (1) above shall have effect as if the reference to six years after the end of the claim period in which the expenditure is incurred were a reference to two years after the relevant time.
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(8) In sub-paragraph (7) above "the relevant time" means the earlier of-
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(a) the time which, as a result of the extension mentioned in that sub-paragraph, is the latest time for the delivery of the return there mentioned; and |
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(b) the time when that return is delivered." |
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(5) In the Table in paragraph 2 of Schedule 6 to that Act (application of provisions of Schedule 5 to claims under Schedule 6), after the entry relating to paragraph 2(6) of Schedule 5 there shall be inserted the following entries-
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"2(7) |
For the reference to paragraph 5 of Schedule 2 to this Act substitute a reference to paragraph 2 of that Schedule;
for the reference to paragraph 2(1) of Schedule 5 to this Act substitute a reference to paragraph 1(2) of this Schedule. |
2(8) |
- " |
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(6) In subsection (4) of section 62 of the Finance Act 1987 (returns relating to sales of oil), for the words from the beginning to "additional return" there shall be substituted-
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"(4) In any case where paragraph 2 of Schedule 2 to the principal Act requires a participator in any oil field to make a return for any chargeable period (including cases where the latest time for the delivery of that return is deferred), that participator shall also be required, not later than the end of the second month after the end of that chargeable period, to deliver to the Board a return".
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(7) In subsection (6) of that section, for paragraph (b) (return under subsection (4) not to include details included in return under paragraph 2 of Schedule 2 to the principal Act) there shall be substituted the following paragraph-
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"(b) details of which are not included in a return for the period under paragraph 2 of Schedule 2 to the principal Act which is delivered to the Board at the same time as the return required by subsection (4) above or which was delivered to them previously; and". |
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(8) The preceding provisions of this section apply in relation to chargeable periods ending on or after 30th June 1999.
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| Business assets: roll-over relief. |
103. - (1) Section 193 of the Taxation of Chargeable Gains Act 1992 (roll-over relief not available for gains on oil licences) shall cease to have effect.
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(2) This section has effect in relation to-
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(a) a disposal of a licence or an interest in a licence which occurs on or after 1st July 1999; |
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(b) an acquisition of a licence or an interest in a licence which occurs on or after 1st July 1999. |
