Skip to content
Solved
SearchBrowse
Sign in

Contents

Legislation
Taxation of Chargeable Gains Act 1992

Crossheading Oil exploration and exploitation

  • Section 193 Roll-over relief not available for gains on oil licences.
  • Section 194 Disposals of oil licences relating to undeveloped areas.
  • Section 195 Allowance of certain drilling expenditure etc.
  • Section 195A Oil licence swaps
  • Section 195B Licence-consideration swap
  • Section 195C Company that receives mixed consideration: N exceeds C
  • Section 195D Company that receives mixed consideration: N does not exceed C
  • Section 195E Company that gives mixed consideration
  • Section 195F Reimbursed expenditure
  • Section 196 Interpretation of sections 194 to 195F .
  • Section 197 Disposals of interests in oil fields etc: ring fence provisions.
  • Section 198 Replacement of business assets used in connection with oil fields.
  • Section 198A Ring fence reinvestment: whole consideration reinvested
  • Section 198B Ring fence reinvestment: part of consideration reinvested
  • Section 198C Provisional application of sections 198A and 198B
  • Section 198D No double claims
  • Section 198E Ring fence reinvestments and disposal consideration
  • Section 198F Qualification for roll-over relief
  • Section 198G Qualification for section 153 relief
  • Section 198H Acquisition by member of same group
  • Section 198I Exploration, appraisal and development expenditure
  • Section 198J Oil and gas: reinvestment after pre-trading disposal
  • Section 198K Provisional application of section 198J
  • Section 198L Expenditure by member of same group
  • Section 199 Exploration or exploitation assets: deemed disposals
  • Section 200 Limitation of losses on disposal of oil industry assets held on 31st March 1982.
  1. Oil exploration and exploitation
  2. Replacement of business assets used in connection with oil fields.

Section 198 | Replacement of business assets used in connection with oil fields.

From legislation.gov.uk

(1)If the consideration which a person obtains on a material disposal is applied, in whole or in part, as mentioned in subsection (1) of section 152 or 153, that section shall not apply unless the new assets are taken into use, and used only, for the purposes of the ring fence trade.

(2)Subsection (1) above has effect notwithstanding subsection (8) of section 152.

(2A)But subsection (1) is subject to section 198A(3)(a).F1

(3)Where—F2

(a)section 152 or 153 applies in relation to any of the consideration on a material disposal, andF2

(b)the asset which constitutes the new assets for the purposes of that section is a depreciating asset,F2

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 trade.

(4)In any case where sections 152 to 154 have effect in accordance with subsections (1) to (3) above, the operation of section 175 shall be modified as follows—

(a)only those members of a group which actually carry on a ring fence trade shall be treated for the purposes of those sections as carrying on a single trade which is a ring fence trade; and

(b)only those activities which, in relation to each individual member of the group, constitute its ring fence trade shall be treated as forming part of that single trade.

(5)In this section—

(a)“material disposal” has the meaning assigned to it by section 197; and

(b)“ring fence trade” means a trade consisting of activities falling within the definition of “oil-related activities” in section 16(2) of ITTOIA 2005 or section 274 of CTA 2010.F3

Notes

  1. F1

    S. 198(2A) inserted (with effect in accordance with Sch. 40 para. 13 of the amending Act) by Finance Act 2009 (c. 10), Sch. 40 para. 11

  2. F2

    S. 198(3) substituted (with effect in accordance with Sch. 40 para. 13 of the amending Act) by Finance Act 2009 (c. 10), Sch. 40 para. 10

  3. F3

    Words in s. 198(5)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 248 (with Sch. 2)

PreviousNext
PrivacyTerms