Section 283 | Valuation where excess of nominated proceeds

(1)This section applies if an excess of nominated proceeds for a chargeable period—

(a)is taken into account in calculating a company's profits under section 2(5)(e) of OTA 1975, or

(b)would have been so taken into account if the company were chargeable to tax under OTA 1975 in respect of an oil field.

(2)For the purposes of the charge to corporation tax on income, the amount of the excess is to be added to the consideration which the company is treated as having received in respect of oil disposed of by it in the period.

(3)For corporation tax purposes, that amount is to be available to the company as a deduction in calculating the profits of any trade which (whether because of section 279 or otherwise) does not consist of activities falling within the definition of “oil-related activities” in section 274.