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Legislation
Corporation Tax Act 2010

Crossheading Oil valuation

  • Section 280 Disposal to be valued by reference to section 2(5A) of OTA 1975
  • Section 281 Valuation where market value taken into account under section 2 of OTA 1975
  • Section 282 Valuation where disposal not sale at arm's length
  • Section 283 Valuation where excess of nominated proceeds
  • Section 284 Valuation where relevant appropriation but no disposal
  • Section 285 Valuation where appropriation to refining etc
  1. Oil valuation
  2. Valuation where relevant appropriation but no disposal

Section 284 | Valuation where relevant appropriation but no disposal

From legislation.gov.uk

(1)This section applies if conditions A and B are met.

(2)Condition A is that a company makes a relevant appropriation of oil without disposing of it.

(3)Condition B is that the company does so in circumstances such that the market value of the oil—

(a)falls to be taken into account under section 2 of OTA 1975 in calculating for petroleum revenue tax purposes the assessable profit or allowable loss accruing to it in a chargeable period from an oil field, or

(b)would so fall but for section 10 of that Act.

(4)For the purposes of the charge to corporation tax on income, the company is to be treated as having, at the time of the appropriation—

(a)sold the oil in the course of the separate trade consisting of activities falling within the definition of “oil-related activities” in section 274, and

(b)purchased it in the course of the separate trade consisting of activities not so falling.

(5)For those purposes, that sale and purchase is to be treated as having been at a price equal to the market value of the oil—

(a)as so taken into account under section 2 of OTA 1975, or

(b)as would have been so taken into account under that section but for section 10 of that Act.

(6)In this section “relevant appropriation” has the meaning given by section 12(1) of OTA 1975.

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