Section 291 — Corporation Tax Act 2010: Tariff receipts etc

Tariff receipts etc 291 1 Subsection (5) applies to a sum which meets conditions A, B and C.

2 Condition A is that the sum constitutes a tariff receipt ... of a person who is a participator in an oil field.

3 Condition B is that the sum constitutes consideration in the nature of income rather than capital.

4 Condition C is that the sum would not, but for subsection (5), be treated as mentioned in that subsection.

5 The sum is to be treated as a receipt of the separate trade mentioned in section 279.

6 So far as they would not otherwise be so treated, the activities—

a of a participator in an oil field, or b of a person connected with the participator, in making available an asset in a way which gives rise to tariff receipts ... of the participator are to be treated for the purposes of this Part as oil extraction activities.

7 In determining for the purposes of subsection (2) whether a sum constitutes a tariff receipt ... of a person who is a participator, no account may be taken of any sum which—

a is in fact received or receivable by a person connected with the participator, and b constitutes a tariff receipt ... of the participator. But in relation to the person by whom such a sum is actually received, subsection (2) has effect as if the person were a participator and as if condition A were met.

8 References in this section to a person connected with a participator include a person with whom the person is associated, within the meaning of paragraph 11 of Schedule 2 to the Oil Taxation Act 1983, but section 1176(1) of this Act (meaning of “connected” persons) does not apply for the purposes of this section.

9 In this section, “ tariff receipt ” has the meaning given by section 291A.

10 So far as it would not otherwise be the case, anything that constitutes a tariff receipt or a tax-exempt tariffing receipt for the purposes of the Oil Taxation Act 1983 is to be treated as a “ tariff receipt ” for the purposes of this section.