HC Deb 19 March 1975 vol 888 cc1791-3

10.0 p.m.

Mr. Robert Sheldon

I beg to move Amendment No. 178, in page 19, line 15, after Act ', insert:

(otherwise than by virtue of paragraph 6 of Schedule 3 thereto)'.

The amendment removes an unintended effect of Clause 12, under which a licensee who has granted an interest in his production to a non-licensee might have been chargeable to corporation tax on that other person's share of the oil. In such cases it is obviously intended that the PRT on the other person's share of the oil should be assessed on the participator, along with the share which he has retained. Paragraph 6 of Schedule 3 so provides. It was, however, intended that the other person should pay his own corporation tax on his share of the oil.

Clause 12 provides that where a person disposes of oil which falls to be included in his PRT computation, the disposal shall be valued for corporation tax on the same basis as for PRT. There is a strong argument that the effect of this is not merely to ensure that the participator's retained share of the oil is valued for corporation tax on the same basis as for PRT, but also to charge him to corporation tax on the other person's share of the oil. The amendment, in effect, prevents that.

Amendment agreed to.

Amendments made: No. 155, in page 19, line 18, after 'field', insert:

'(or would so fall but for section 8 of this Act)'.

No. 156, in page 19, line 23, at end insert:

'(or as would have been so taken into account under that section but for section 8 of this Act'.

No. 194, in page 19, line 24, leave out:

'appropriates any oil to refining or other processing' and insert 'makes a relevant appropriation of any oil'.

No. 157, in page 19, line 30, after 'field', insert:

'(or would so fall but for section 8 of this Act)'.

No. 158, in page 19, line 40, at end insert:

'(or as would have been so taken into account under that section but for section 8 of this Act)'.

No. 195, in page 19, line 40, at end insert:

'In this subsection "relevant appropriation" has the meaning given in section 10(1) of this Act'.

No. 214, in page 20, line 5, leave out from:

'at' to 'in' in line 6 and insert the material time in the calendar month'.

No. 215, in page 20, line 7, leave out from 'subsection' to 'and' in line 10 and insert:

'"material time" and "calendar month" have the meaning given by paragraph 3(2) of Schedule 3 to this Act '.—[Mr. Robert Sheldon.]

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