§ Mr. Skeetasked the Chancellor of the Exchequer whether the deemed market price for advanced petroleum revenue tax is a variant of the recommended reference price for North sea crudes or of spot market prices.
§ Mr. WakehamThe same valuation rules apply for advance petroleum revenue tax as apply for petroleum revenue tax. For oil sold at arm's length tax is based on the actual sale proceeds. Oil disposed of other than at arm's length or appropriated for the producer's own use is valued at market value—that is, the price at which the oil could have been sold to a willing buyer at that time in a sale at arm's length. The valuation is based on all relevant evidence of prices charged in comparable and contemporary transactions between parties at arm's length.