Oil Taxation Act 1975

This paragraph applies if an area has ceased to be— The area is to be treated as continuing to be— that it actually was. Accordingly, whilst the area is treated in accordance with sub-paragraph (2), any reference to an oil field is to include a reference to the area. Sub-paragraph (2) ceases to apply to the area— Sub-paragraph (2) ceases to apply to the area if, or to the extent that, it again becomes— Sub-paragraph (2) ceases to apply to the area at the end of the second chargeable period that falls after the chargeable period in which the area is decommissioned.

A relevant area is decommissioned for the purposes of paragraph 6 if all qualifying assets of the relevant area are decommissioned. If, and to the extent that, a UK offshore decommissioning regime applies to qualifying assets of the relevant area, those assets are decommissioned if— If, and to the extent that, a UK offshore decommissioning regime does not apply to qualifying assets of the relevant area, those assets are decommissioned if the Board are satisfied that they have been decommissioned. For the purposes of sub-paragraph (3) the Board must have regard to any obligations to decommission the qualifying assets which arise under the law applicable to those qualifying assets (whether the law of any part of the United Kingdom or of any other state or territory), including any obligations imposed by an authority having functions under that law in respect of such decommissioning. If sub-paragraph (3) applies (to any extent) to any qualifying assets, the Board must give the responsible person notice of any decision the Board make under that sub-paragraph. The responsible person may appeal against such a decision by notice in writing given to the Board within three months of the responsible person receiving the notice under sub-paragraph (5). An appeal under sub-paragraph (6) may, before it is notified to the tribunal, be abandoned by notice in writing given to the Board by the responsible person. The provisions of paragraphs 14A to 14I of Schedule 2 apply to appeals under sub-paragraph (6) subject to any necessary modifications. In this paragraph—

The tax shall be under the care and management of the Board; and the provisions of the Taxes Management Act 1970 specified in the first column of the following Table shall apply in relation to the tax as they apply in relation to a tax within the meaning of that Act, subject to any modifications specified in the second column of that Table and with the substitution, for references to Part IX of that Act or to the Taxes Acts, of references to this Part of this Act and, for references to chargeable periods within the meaning of that Act, of references to chargeable periods within the meaning of this Part of this Act. Provisions applied Modifications Section 1(3) . . . 33 . . . In subsection (3), after “assessments made on” insert “ or determinations made in relation to ”. In subsection (5), for the words following “profits” substitute “ means assessable profits. ” 34 36 . . . “ For the purposes of this section any fraud, wilful default or neglect committed at any time by a responsible person for an oil field in connection with or in relation to the tax shall be treated as having been committed on behalf of each of the participators in that field at that time. ” 47C — . . . . . . 48 49... 50(1)-(5) . . .. 51 . . . 52 . . . . . . 56 . . . Section 56 - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 In subsection (1), omit the words following “charged therewith”. 61 In subsection (1), omit the words from “distrain upon” to “is charged or”. 62(1) Omit “or which are payable for the year in which the seizure is made” and for “one year” and “one whole year” substitute “ two chargeable periods ”. (2) For “one whole year” substitute “ two chargeable periods ”. 63 64(1) For “one year” and “one whole year” substitute “ two chargeable periods ”. (2) For “one whole year” substitute “ two chargeable periods ”. 66 67 68 69 In paragraph (a), substitute a reference to section 68 as applied by this paragraph for the reference to the sections there specified. . . . . . . 89(2) For the reference to the rate or rates of interest prescribed by subsection (1) of that section substitute a reference to the rate of interest mentioned in paragraph 15 of this Schedule. (3) 90 98 . . . . . . Section 100C In subsection (1) omit the words after “penalty” . . . . . . . . . . . . . . . . . . . 101 For the reference to income or chargeable gains substitute a reference to assessable profits. 102 Section103(1) For the words from the beginning to “court -” substitute “ Where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period , proceedings for the penalty may be commenced before the tribunal - ” (4) For the words from the beginning to “court,”substitute “ Proceedings for a penalty to which subsection (1) above does not apply may be commenced before the tribunal . ” 104 105 107(1)–(3) 108 In subsection (2), for the words from the beginning to “Acts” substitute “ The tax chargeable ”. 112 In subsection (1), after “assessment to tax” and “the assessment” insert “ or determination ” and after “duplicate of assessment to tax” and “duplicate of assessment” insert “ or of determination ”. 113(1A) (3) After “assessment” insert “ determination ” and after “notice of assessment” insert “ notice of determination ”. 114 After “assessment” wherever occurring insert “ or determination ”. 115(1)–(3) 118(1) (2) Any expression to which a meaning is given in this Part of this Act which is used in a provision of the Taxes Management Act 1970 applied by this paragraph shall, in that provision as so applied, have the same meaning as in this Part of this Act.

Every participator in a taxable field shall, for each chargeable period, prepare and, within two months after the end of the period or within such longer period as the Board may allow, deliver to the Board a return complying with the following provisions of this paragraph; but nothing in this sub-paragraph shall require a participator to deliver a return under this paragraph before 31st August 1975. A return under this paragraph for a chargeable period shall give the following information in relation to oil which is or was included in the participator’s share of any oil won from the taxable field (whether or not in that period), that is to say— Every participator in a taxable field shall, in the first return under this paragraph which he makes for that field, state whether any and, if any, how much expenditure to which section 5A or section 5B of this Act applies and which relates to, or to a licence for, any part of the field has been claimed under Schedule 7 to this Act— and subsection (7) of section 5 of this Act applies for the purposes of this sub-paragraph as it applies for the purposes of that section. A return under this paragraph for a chargeable period shall state— A return under this paragraph for a chargeable period shall— A return under this paragraph shall be in such form as the Board may prescribe and shall include a declaration that the return is correct and complete. The power of the Board to allow an extension of time under sub-paragraph (1) above shall include power—

If a participator fails to deliver a return within the time allowed for doing so under paragraph 2(1) above he shall be liable, subject to sub-paragraph (3) below— If the failure continues after the end of six months from the time by which the return ought to have been delivered, the penalty under sub-paragraph (1)(a) above shall be an amount not exceeding the aggregate of £500 and the total amount of the tax with which the participator is charged for the chargeable period in question. Except in the case mentioned in sub-paragraph (2) above, the participator shall not be liable to any penalty incurred under this paragraph for failure to deliver a return if the failure is remedied before proceedings for the recovery of the penalty are commenced.

For each oil field a body corporate or partnership shall be appointed in accordance with this paragraph as the responsible person for that field to perform, in relation to the field, any functions conferred on it as such by this Part of this Act; and the body or partnership which for the time being holds that appointment is in this Part of this Act referred to as “the responsible person”. No body corporate shall be eligible for appointment as the responsible person for a taxable field unless it is resident in the United Kingdom, and no partnership shall be so eligible unless all its members are resident there. The participators in a taxable field shall, by notice in writing to the Board within the initial period, nominate a body corporate or a partnership for appointment as the responsible person for that oil field and, if the Board approve the nomination, the Board shall appoint that body or partnership as the responsible person and give it notice that it has been so appointed. If— the Board shall appoint one of the participators in the taxable field as the responsible person for the field and shall give notice to that participator that he has been so appointed. For the purposes of the preceding provisions of this paragraph, the initial period is the period of thirty days beginning with the latest date on which notice of determination of the taxable field is given to any of the participators under paragraph 4 of Schedule 1 to this Act. The Board may at any time, on the application of all the participators in a taxable field, appoint a body corporate or partnership nominated by the participators as the responsible person for that field in place of the body corporate or partnership which is the responsible person at that time, and shall give the body or partnership so appointed notice that it has been so appointed. The Board may, by notice in writing to the body corporate or partnership which is for the time being the responsible person for a taxable field, revoke the appointment of that body or partnership as the responsible person for that field; and where they do so the Board shall appoint one of the participators in the taxable field as the responsible person for that field and shall give notice to the participator that he has been so appointed. In this paragraph “participator”, in relation to a taxable field, means a person who is a licensee in respect of any licensed area wholly or partly included in the field.

The responsible person for a taxable fieldshall, for each chargeable period, prepare and, within one month after the end of the period or within such longer period as the Board may allow, deliver to the Board a return for that period complying with sub-paragraphs (2) and (3) below; but nothing in this sub-paragraph shall require the responsible person to deliver a return under this paragraph before 31st July 1975. A return under this paragraph for a chargeable period shall— The reference in sub-paragraph (2)(d) above to particulars of or relating to the field includes a reference to particulars required for determining the amount by which any qualifying tariff receipts, within the meaning of section 9 of the Oil Taxation Act 1983, are to be treated as reduced by virtue of that section. If in any chargeable period oil won from the taxable field is mixed as mentioned in section 63 of the Finance Act 1987 so as to give rise to blended oil, within the meaning of that section, then, as respects that chargeable period, for paragraph (a) of sub-paragraph (2) above there shall be substituted the following paragraph—. A return under this paragraph shall be in such form as the Board may prescribe and shall include a declaration that the return is correct and complete. The power of the Board to allow an extension of time under sub-paragraph (1) above shall include power—

If the responsible person fails to deliver a return within the time allowed for doing so under paragraph 5(1) above he shall be liable— The responsible person shall not be liable to any penalty incurred under sub-paragraph (1) above for failure to deliver a return if the failure is remedied before proceedings for the recovery of the penalty are commenced.

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Where it appears to the Board that, in accordance with the provisions of this Part of this Act, an assessable profit has accrued to a participator in a chargeable period from a taxable field, they shall make an assessment to tax on the participator and shall give him notice of the assessment. An assessment under sub-paragraph (1) may be made at any time not more than 4 years after the end of the chargeable period to which it relates (subject to paragraphs 12A , 12B and 13E ). Where it appears to the Board that, in accordance with those provisions, an allowable loss has accrued to a participator in a chargeable period from a taxable field, they shall make a determination that the loss is allowable to the participator and shall give him notice of the determination. Where it appears to the Board that, in accordance with those provisions, neither an assessable profit nor an allowable loss has accrued to a participator in a chargeable period, they shall make a determination to that effect and shall give him notice of the determination. A notice of assessment for a chargeable period shall state the amount of any allowable losses which, in accordance with those provisions, have been set against the assessable profit for that period. A notice of assessment or determination shall state that the participator may appeal against the assessment or determination in accordance with paragraph 14 below. After the service of the notice of assessment or the notice of determination the assessment or determination, as the case may be, shall not be altered except in accordance with the express provisions of this Part of this Act (including the provisions applied by paragraph 1 above).

Where a participator has under paragraph 2 above delivered to the Board a return for a chargeable period and the Board are satisfied that the information given in the return is correct in so far as it is material for the purpose of computing his assessable profit or allowable loss (if any) for that period, the Board shall (in so far as the computation falls to be made by reference to the matters dealt with in the return) make the assessment or determination under paragraph 10 above in accordance with the return. Where the Board are not so satisfied in relation to a participator’s return or a participator fails to deliver to the Board a return for a chargeable period as required by paragraph 2 above, the Board shall, in so far as the computation of his assessable profit or allowable loss (if any) for that period falls to be made by reference to the matters which were dealt with in the return or, as the case may be, ought to have been dealt with in a return, make the assessment or determination under paragraph 10 above to the best of their judgment. Nothing in sub-paragraph (2) above or in paragraph 5 above shall be taken, in a case where the participator has delivered a return as to which the Board are not satisfied as mentioned in sub-paragraph (1) above, to prevent the Board from basing their assessment or determination on the participator’s having had an interest in oil won and saved from the field different from that on which he based his return.

Where it appears to the Board— the Board may make such assessments or determinations or such amendments of assessments or determinations as may be necessary; and where the Board exercise any of their powers under this paragraph in relation to a chargeable period, they may make such assessments or determinations or amendments of assessments or determinations for other chargeable periods as may be necessary in consequence of the exercise of those powersand “taxable field” and “non-taxable field” have the same meaning as in Part III of the Finance Act 1993. An assessment (or an amendment of an assessment) under sub-paragraph (1) may be made at any time not more than 4 years after the end of the chargeable period to which the assessment relates (subject to sub-paragraph (1B) and paragraphs 12A and 12B). The time limits in sub-paragraph (1A) and paragraphs 12A and 12B do not apply to an amendment of an assessment where the amendment is made in consequence (directly or indirectly) of— Where under sub-paragraph (1) above it appears to the Board that the assessable profit for a chargeable period ought to have been larger and that the deficiency resulted from an excessive allowable loss accruing in a subsequent period having been set against the profit for that period, the Board may ... make a further assessment by virtue of sub-paragraph (1) above at any time not later than 4 years after the end of the chargeable period in which the allowable loss accrued (subject to paragraphs 12A and 12B) . Where under this paragraph the Board make an assessment or determination or amend an assessment or determination they shall give notice thereof to the participator concerned; and sub-paragraphs (4), (5) and (6) of paragraph 10 above shall apply in relation to any such assessment, determination or amendment as they apply in relation to an assessment or determination under that paragraph.

Where— the period within which the Board may make an assessment under this Schedule for that chargeable period shall not expire before the end of the period of 4 years beginning with the relevant time. In this paragraph “the relevant time” means the earlier of—

In a case involving a relevant situation brought about carelessly by a participator (or a person acting on behalf of a participator), an assessment (or an amendment of an assessment) under this Schedule on the participator may be made at any time not more than 6 years after the end of the relevant chargeable period (subject to sub-paragraph (2) and (2A) ). In a case involving a relevant situation brought about deliberately by a participator (or a person acting on behalf of a participator), an assessment (or an amendment of an assessment) on the participator may be made at any time not more than 20 years after the end of the relevant chargeable period. In a case involving a relevant situation brought about by arrangements which were expected to give rise to a tax advantage in respect of which a participator (or a person acting on behalf of a participator) was under an obligation to notify the Board under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so, an assessment (or an amendment of an assessment) on the participator may be made at any time not more than 20 years after the end of the relevant chargeable period. “Relevant situation” means a situation in which— “Relevant chargeable period” means— Where the participator carried on a trade or business with one or more other persons at any time in the chargeable period for which the assessment under sub-paragraph (1) , (2) or (2A) is made, an assessment to tax in respect of the profits of that trade or business may also be made on any of the participator's partners. In determining the amount of the tax to be charged on a person for a chargeable period in an assessment in a case mentioned in sub-paragraph (1) , (2) or (2A) (including an assessment under sub-paragraph (5)), effect must be given to any relief or allowance to which that person would have been entitled for that period if a valid claim or application had been made. Sub-paragraph (6) only applies if the person on whom the assessment is made so requires. Subsections (5) to (7) of section 118 of the Taxes Management Act 1970 (losses and situations brought about carelessly or deliberately) apply for the purposes of this paragraph as they apply for the purposes of that Act. In subsection (6)(b) of that section (as it applies for the purposes of this paragraph), the reference to the person who provides the information has effect as if it included any person who becomes the responsible person for the oil field after the information is provided.

Subject to paragraph 14 below, the tax charged in an assessment made on a participator for any chargeable period and payable shall be due within six months after the end of that chargeable period or, if later, thirty days after the date of issue of the notice of assessment; but no tax shall be payable by virtue of this paragraph before 30th April 1976.

A participator may appeal ... against an assessment or determination or an amendment of an assessment or determination made on or in relation to him by notice of appeal in writing given to HMRC within thirty days after the date of issue of the notice of assessment or determination or of the notice of the amendment. A participator who has made a claim under paragraph 13A may appeal from the decision on the claim by notice in writing given to HMRC within 30 days after the date of issue of the notice of the decision. The notice of appeal must specify the grounds of appeal. A participator who has given notice of appeal under sub-paragraph (1) above against an assessment charging him with any tax for a chargeable period may, if he delivered a return for that period as required by paragraph 2 above, withhold, until the determination or abandonment of the appeal, so much of the tax charged in the assessment as is the smaller of— Subject to sub-paragraph (5) below, where the market value of all the oil for which a market value is stated in the participator’s return is, as stated in that return, less than the value which is produced for that oil by applying to it the average price mentioned in sub-paragraph (6) below, sub-paragraph (3) above shall have effect as if, for the reference to the market value of oil as so stated, there were substituted a reference to the value which is so produced for that oil. The comparison of values and the substitution required by sub-paragraph (4) above shall, in the case of an appeal by a participator whose return relates both to gas and to other oil, be made separately for the gas and for the other oil. The average price referred to in sub-paragraph (4) above is the average price at which all oil included in the relevant returns as oil delivered in the period covered by the returns and disposed of in sales at arm’s length was so disposed of. The relevant returns for the purposes of sub-paragraph (6) above are all the returns of all the participators in all oil fields which— The participator may at any time, if HMRC do not object to his doing so, abandon an appeal instituted by him; and for this purpose he shall notify his desire to do so to HMRC who may, within thirty days after being so notified, object by notice in writing to the participator. Where, at any time between— HMRC and the participator agree on how the assessment, determination, amendment or decision should be varied or on what assessment or determination should be substituted in relation to the chargeable period in question, the same consequences shall ensue as if the tribunal had determined the appeal to that effect. If an appeal under sub-paragraph (1) is notified to the tribunal and it appears to the tribunal that the assessment, determination or amendment is wrong— the tribunal shall vary the assessment, determination or amendment in such manner, or substitute such assessment or determination, as may be required; and it shall be for the participator to satisfy the tribunal as to any matter within paragraph (a) above. If an appeal under sub-paragraph (1A) is notified to the tribunal and it appears to the tribunal that the decision is wrong, the tribunal shall substitute such decision as may be required. When an appeal is notified to the tribunal, the decision of the tribunal on the appeal is final and conclusive. But sub-paragraph (11) is subject to—

This paragraph applies where— The participator may make a claim to the Commissioners for Her Majesty's Revenue and Customs (“HMRC”) for repayment or discharge of the amount. Paragraph 13B makes provision about cases in which HMRC are not liable to give effect to a claim under this paragraph. Paragraphs 13C to 14I make further provision about making and giving effect to claims under this paragraph. Paragraph 13F makes provision about the application of this paragraph and paragraphs 13B to 13E to amounts paid under contract settlements. HMRC are not liable to give relief in respect of a case described in sub-paragraph (1)(a) or (b) except as provided— For the purposes of this paragraph and paragraphs 13B to 13F, an amount paid by one person on behalf of another is treated as paid by the other person. In this paragraph and paragraphs 13B to 13F, “the Oil Taxation Acts” means—

Subject to sub-paragraph (2) below, tax charged in an assessment for a chargeable period shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from two months after the end of the period until payment. Nothing in sub-paragraph (1) above shall authorise or require interest to be charged from any time before 30th April 1976. Where, under paragraph 14(3) above, tax may be withheld until the determination or abandonment of an appeal, the interest on that tax may also be withheld until the determination or abandonment of the appeal.

Subject to paragraph 17 below where any amount of tax charged by an assessment to tax or paid on account of tax so charged becomes repayable under any provision of this Part of this Act that amount shall carry interest at the rate applicable under section 178 of the Finance Act 1989from— whichever is the later, until the order for repayment is issued.

This paragraph applies where— In the following provisions of this paragraph, so much of the repayment of tax referred to in sub-paragraph (1)(c) above as is attributable to giving effect to the relief for losses carried back is referred to as “the appropriate repayment” and, in relation to the appropriate repayment, the chargeable period for which the relevant assessment or amendment is made is referred to as “the repayment period”. For the purpose of determining the amount of the appropriate repayment in a case where the relevant assessment or amendment not only gives effect to the relief for losses carried back but also takes account of any other matter (whether a relief or not) which goes to reduce the assessable profit of the period in question or otherwise to reduce the tax payable for that period, the amount of the repayment which is attributable to the relief for losses carried back is the difference between)— Subject to sub-paragraph (6) below Where this paragraph applies, the amount of interest which, by virtue of paragraph 16 above which is treated as reducing the assessable profit of the repayment period, is carried by the appropriate repayment shall not exceed the difference between— For the purposes of sub-paragraph (4)(a) above— If, in order to give effect to the relief for losses carried back, a repayment of APRT falls, or will on the making of a claim fall, to be made with respect to a chargeable period which is the repayment period in relation to the appropriate repayment, the reference in sub-paragraph (4)(b) above to the appropriate repayment shall be construed as a reference to the aggregate of that repayment and the repayment of APRT. In sub-paragraph (6) above “APRT” means advance petroleum revenue tax paid under Chapter II of Part VI of the Finance Act 1982.

HMRC are not liable to give effect to a claim under paragraph 13A if or to the extent that the claim falls within a case described in this paragraph. Case A is where the amount paid, or liable to be paid, is excessive by reason of— Case B is where the participator— Case C is where the participator— Case D is where the claim is made on grounds that— Case E is where the participator knew, or ought reasonably to have known, of the grounds for the claim before the latest of the following— Case F is where the amount in question was paid or is liable to be paid— Case G is where— Case G does not apply where the amount paid, or liable to be paid, is tax which has been charged contrary to EU law. For the purposes of sub-paragraph (9), an amount of tax is charged contrary to EU law if, in the circumstances in question, the charge to tax is contrary to—

A claim under paragraph 13A may not be made more than 4 years after the end of the relevant chargeable period. In relation to a claim made in reliance on paragraph 13A(1)(a), the relevant chargeable period is— In relation to a claim made in reliance on paragraph 13A(1)(b), the relevant chargeable period is — A claim under paragraph 13A must be in such form as the HMRC may prescribe.

HMRC must—

This paragraph applies where— Where this paragraph applies— A claim is not finally determined until it, or the amount to which it relates, can no longer be varied (whether on appeal or otherwise).

In paragraph 13A(1)(a) the reference to an amount paid by a participator by way of tax includes an amount paid by a person under a contract settlement in connection with tax believed to be due. Sub-paragraphs (3) to (6) apply if the person who paid the amount under the contract settlement (“the payer”) and the person from whom the tax was due (“the taxpayer”) are not the same person. In relation to a claim under paragraph 13A in respect of that amount— Sub-paragraph (5) applies where the grounds for giving effect to a claim by the payer in respect of the amount also provide grounds for making an assessment or determination under paragraph 10 or 12, or an amendment of such an assessment or determination, on the taxpayer in respect of any chargeable period. HMRC may set any amount repayable to the payer by virtue of the claim against any amount payable by the taxpayer by virtue of the assessment, determination or amendment. The obligations of HMRC and the taxpayer are discharged to the extent of any set-off under sub-paragraph (5). “Contract settlement” means an agreement made in connection with any person's liability to make a payment to HMRC under or by virtue of an enactment.

This paragraph applies if notice of appeal has been given to HMRC. In such a case— See paragraphs 14G and 14H for provision about notifying appeals to the tribunal after a review has been required by the participator or offered by HMRC. This paragraph does not prevent the matter in question from being dealt with in accordance with paragraph 14(9).

Sub-paragraphs (2) and (3) apply if the participator notifies HMRC that the participator requires HMRC to review the matter in question. HMRC must, within the relevant period, notify the participator of HMRC’s view of the matter in question. HMRC must review the matter in question in accordance with paragraph 14E. The participator may not notify HMRC that the participator requires HMRC to review the matter in question and HMRC shall not be required to conduct a review if— In this paragraph “relevant period” means—

Sub-paragraphs (2) to (5) apply if HMRC notify the participator of an offer to review the matter in question. When HMRC notify the participator of the offer, HMRC must also notify the participator of HMRC’s view of the matter in question. If, within the acceptance period, the participator notifies HMRC of acceptance of the offer, HMRC must review the matter in question in accordance with paragraph 14E. If the participator does not give HMRC such a notification within the acceptance period, HMRC’s view of the matter in question is to be treated as if it were contained in an agreement in writing under paragraph 14(9) for the settlement of that matter. Sub-paragraph (4) does not apply to the matter in question if, or to the extent that, the participator notifies the appeal to the tribunal under paragraph 14H. HMRC may not notify the participator of an offer to review the matter in question (and, accordingly, HMRC shall not be required to conduct a review) if— In this paragraph “acceptance period” means the period of 30 days beginning with the date of the document by which HMRC notify the participator of the offer to review the matter in question.

This paragraph applies if notice of appeal has been given to HMRC. The participator may notify the appeal to the tribunal. If the participator notifies the appeal to the tribunal, the tribunal is to decide the matter in question. Sub-paragraphs (2) and (3) do not apply in a case where— In a case falling within sub-paragraph (4)(a) or (b), the participator may notify the appeal to the tribunal, but only if permitted to do so by paragraph 14G or 14H.

This paragraph applies if HMRC are required by paragraph 14B or 14C to review the matter in question. The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances. For the purpose of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review— The review must take account of any representations made by the participator at a stage which gives HMRC a reasonable opportunity to consider them. The review may conclude that HMRC’s view of the matter in question is to be— HMRC must notify the participator of the conclusions of the review and their reasoning within— In sub-paragraph (6) “relevant day” means— Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in sub-paragraph (6), the review is to be treated as having concluded that HMRC’s view of the matter in question (see paragraphs 14B(2) and 14C(2)) is upheld. If sub-paragraph (8) applies, HMRC must notify the participator of the conclusion which the review is treated as having reached.

This paragraph applies if HMRC give notice of the conclusions of a review (see paragraph 14E(6) and (9)). The conclusions are to be treated as if they were an agreement in writing under paragraph 14(9) for the settlement of the matter in question. Sub-paragraph (2) does not apply to the matter in question if, or to the extent that, the participator notifies the appeal to the tribunal under paragraph 14G.

This paragraph applies if— The participator may notify the appeal to the tribunal within the post-review period. If the post-review period has ended, the participator may notify the appeal to the tribunal only if the tribunal gives permission. If the participator notifies the appeal to the tribunal, the tribunal is to determine the matter in question. In this paragraph “post-review period” means—

This paragraph applies if— The participator may notify the appeal to the tribunal within the acceptance period. But if the acceptance period has ended, the participator may notify the appeal to the tribunal only if the tribunal gives permission. If the participator notifies the appeal to the tribunal, the tribunal is to determine the matter in question. In this paragraph “acceptance period” has the same meaning as in paragraph 14C.

In paragraphs 14A to 14H— In paragraphs 14A to 14H, a reference to the participator includes a person acting on behalf of the participator except in relation to— But if a notification falling within sub-paragraph (2) is given to the participator, a copy of the notification may also be given to a person acting on behalf of the participator.

For the purposes of this Part of this Act a sale of any oil is a sale at arm’s length if, but only if, the following conditions are satisfied with respect to the contract of sale, that is to say— Section 1122 of CTA 2010 (connected persons) shall apply for the purposes of the preceding sub-paragraph.

Except in the case of light gases the market value of any particular quantity of oil of any kind on any day shall be determined for the purposes of this Part of this Act in accordance with this paragraph and, accordingly, references in the following provisions of this paragraph to oil do not apply to light gases. This paragraph makes different provision according to whether the oil is— For the purposes of this Act— The Board may specify oil of any particular kind as Category 1 oil only if they are satisfied that reports of prices for sales of oil of that kind are published and widely available (whether or not on payment of a fee). The market value of any particular quantity of Category 1 oil of any kind is the price for which that quantity of oil of that kind might reasonably have been expected to be sold under a contract of sale that meets the following conditions— The terms as to payment which are to be implied in the contract are those which are customarily contained in contracts for the sale at arm's length of oil of the kind in question. The market value of any particular quantity of Category 2 oil of any kind is the price for which that quantity of oil of that kind might reasonably have been expected to be sold under a contract of sale that meets the following conditions— The terms as to payment which are to be implied in the contract are those which are customarily contained in contracts for the sale at arm's length of oil of the kind in question. For the purposes of sub-paragraph (2) or (2AA) above, the price of any quantity of Category 1 or Category 2 oil of any kind shall be determined in such manner, on the basis of such information, and by reference to such factors, as may be prescribed for oil of that Category and kind in regulations made by the Board. The provision that may be made by regulations under subsection (2E) above includes provision for or in connection with any or all of the following— Sub-paragraph (2I) below has effect if, or in so far as, the Board are satisfied that it is impracticable or inappropriate to determine for the purposes of sub-paragraph (2) or (2AA) above the price of any oil in accordance with the provisions of regulations for the time being in force under sub-paragraph (2E) above. For that purpose it is immaterial whether the impracticability or inappropriateness is by virtue of— or for any other reason. Where this sub-paragraph has effect, the price is to be determined— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Where all or any of the oil whose market value falls to be ascertained in accordance with sub-paragraph (1) and sub-paragraph (2) or (2AA) above has been subjected to initial treatment before being disposed of or relevantly appropriated, the appropriate initial treatment referred to in sub-paragraph (2)(d) or (2AA)(d) above shall, as respects that oil, include the whole of that treatment. The provisions of sub-paragraphs (2) and (2AA) above shall apply for the ascertainment of the market value of oil in any case mentioned in paragraph 2(2) of Schedule 2 to this Act as they apply in relation to the corresponding case mentioned in those provisions. In this paragraph “prescribed” means specified in, or determined in accordance with, regulations.

Paragraph 2 above shall have effect in accordance with this paragraph where the oil whose market value falls to be ascertained at any time in accordance with sub-paragraphs (1) to (2I) of that paragraph ... consists of or includes gas. Sub-paragraphs (2) and (3) below also apply where the market value of any light gases falls to be ascertained under paragraph 3A below. Sub-paragraph (2)(d) or (as the case may be) (2AA)(d) of paragraph 2 above or, as the case may require, sub-paragraph (2)(b) of paragraph 3A below shall not apply to so much of the oil as consists of gas unless— and where oil consisting of gas has, whether before or after being disposed of or relevantly appropriated, been subjected to initial treatment by or on behalf of the participator in question or by or on behalf of a person who is connected with him as aforesaid the appropriate initial treatment referred to in sub-paragraph (2)(d) or (2AA) of paragraph 2 above or, as the case may require, sub-paragraph (2)(b) of paragraph 3A belowshall include the treatment to which it has been so subjected. Where the initial treatment mentioned in sub-paragraph (2) or (2AA) above includes treatment in order to separate gas of one or more kinds which are transported and sold in normal commercial practice, the market value of the gas of each such kind which is separated shall be ascertained in accordance with sub-paragraphs (1) to (2I) of paragraph 2 or, as the case may require, in accordance with paragraph 3A below as if that were the only oil whose market value fell to be ascertained at the time in question .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

This paragraph has effect for determining, for the purposes of this Schedule, the day which is the “notional delivery day” in the case of any particular quantity of oil of any particular kind whose market value falls to be determined in accordance with the provisions of this Schedule in the case of any chargeable period. The notional delivery day need not be a day in the chargeable period. In the case of a quantity of oil which, at the end of the chargeable period,— the notional delivery day is the last business day of the chargeable period. In the case of— the notional delivery day is to be determined in accordance with sub-paragraphs (5) to (7) below. If that oil is— and there is a loading slot for it (see sub-paragraph (8)), the notional delivery day is the middle day of the loading slot. If sub-paragraph (5) above does not apply to that oil, then— The Treasury may by regulations make provision for or in connection with substituting as the notional delivery day in such circumstances as may be prescribed— The “loading slot” for any oil is the period of three days within which the loading of the oil on to the ship is or was to take place— In sub-paragraph (8) above, “duly” means in accordance with the arrangements for the time being governing the time and manner of— and, in any case, before the end of the calendar month immediately preceding that in which loading is to take place. If the Treasury consider that, for the purpose of defining “loading slot”, any period of days for the time being specified by or under this Act as the period of days within which loading of oil on to a ship is to take place is, or is to be, no longer appropriate, they may by regulations make provision for, or in connection with,— The power conferred by this sub-paragraph includes power to make amendments to, or modifications of, this Schedule.

For the purposes of subsection (5) of section 2 of this Act, the aggregate market value of any oil falling within paragraph (b) or (c) of that subsection is arrived at as follows. In the case of oil falling within paragraph (b) of that subsection and delivered as there mentioned in the chargeable period in question— In the case of oil falling within paragraph (c) of that subsection and appropriated as there mentioned in the chargeable period in question—

Oil delivered to the OGA under the terms of a licence granted under Part I of the Petroleum Act 1998shall be disregarded for the purposes of section 2(5) of this Act and for the purposes of the references in section 8(3) and (4) of this Act to a participator’s share of the oil won and saved from an oil field in a chargeable period.

This paragraph applies to any agreement or other arrangement between a participator in an oil field and a company associated with the participator whereby— As regards any chargeable period in which a participator in an oil field is a party to an arrangement to which this paragraph applies, the other party to the arrangement shall be treated for all purposes of this Part of this Act (except this paragraph) and for the purposes of sections 299 to 301 of CTA 2010 as having been a participator in the field at all times when the actual participator was such a participator (including times before the arrangement was made), and shall be assessable and chargeable to tax and entitled to make any claim under this Part of this Act, and any deduction or claim under sections 299 to 301 of CTA 2010, accordingly. Where a participator in an oil field is or has been a party to an arrangement to which this paragraph applies then for all purposes of this Part of this Act— Where a participator in an oil field is or has been a party to an arrangement to which this paragraph applies, then, if any tax or interest payable under this Part of this Act by the other party to the arrangement is not paid within thirty days after the date on which it becomes payable, the Board may by notice in writing require the participator to pay that tax or interest; and where such a notice is served on the participator, the tax or interest in question shall be payable by him forthwith, but without prejudice to the Board’s right to recover it from the other party. For the purposes of this paragraph “company” means any body corporate, and a participator in an oil field and another company are associated with one another if— and in this sub-paragraph “control” has the meaning given by section 1124 of CTA 2010.

The market value of any light gases for the purposes of this Part of this Act is the price at which, having regard to all the circumstances relevant to the disposal or appropriation in question, light gases of that kind might reasonably have been expected to be sold under a contract of sale satisfying the conditions specified in sub-paragraph (2) below. The conditions referred to in sub-paragraph (1) above are that— If the circumstances referred to in sub-paragraph (1) above are such that the price referred to in that sub-paragraph might reasonably be expected to include— section 114 of the Finance Act 1984 shall apply accordingly in relation to the notional contract specified in sub-paragraph (1) above as it applies in relation to an actual contract. The circumstances referred to in sub-paragraph (1) above include— This paragraph has effect subject to sub-paragraphs (2) and (3) of paragraph 2A above.

Where a proportion of a participator’s share in the oil won and saved from an oil field (as distinct from a specific quantity of oil comprised in that share) is owned by a person (in this paragraph referred to as “the owner”) who is not a participator and who acquired it (whether directly or indirectly) under an agreement to which paragraph 5 above does not apply, the following provisions of this paragraph shall have effect. For the purposes of this Part of this Act the oil acquired by the owner under the agreement shall be treated in every case as having been disposed of to him by the participator otherwise than in a sale at arm’s length. Where any oil which the owner owns in right of the agreement is in pursuance of the agreement— the delivery shall for the purposes of this Part of this Act be regarded as a delivery by the participator although he does not own the oil. This sub-paragraph applies to all such oil (if any) as, being owned by the owner in right of the agreement, is in any chargeable period delivered by the participator as mentioned in the preceding sub-paragraph and would accordingly, apart from the following sub-paragraph, fall to be brought into account under section 2(5)(b) of this Act in computing the assessable profit or allowable loss accruing to the participator in that period (in the following sub-paragraph referred to as “the relevant period”). If on a claim made by the participator within two months after the end of the relevant period— then, in computing the assessable profit or allowable loss accruing to the participator in the relevant period, the oil with respect to which it is so shown shall be brought into account by reference to the price received or receivable for it by the owner instead of by reference to its market value.

In computing the assessable profit or allowable loss accruing to a participator in a chargeable period from an oil field, the market value of any oil won as mentioned in section 3(1)(f) of this Act—

Expenditure shall not be regarded for any of the purposes of this Part of this Act as having been incurred by any person in so far as it has been or is to be met directly or indirectly by the Crown or by any government or public or local authority, whether in the United Kingdom or elsewhere, or by any person other than the first-mentioned person, unless it is so met by a grant made under Part I of the Industry Act 1972 or a grant made under an enactment of the Parliament of Northern Ireland or Measure of the Northern Ireland Assembly and declared by order of the Treasury under section 84 of the Capital Allowances Act 1968 to correspond to a grant made under the said Part I. But sub-paragraph (1) above does not apply to any expenditure for which the relevant participator is liable that has been or is to be met directly or indirectly out of a payment made by the guarantor under an abandonment guarantee. In sub-paragraph (1A) above— In considering, for the purposes of this paragraph, how far any expenditure has been or is to be met directly or indirectly by the Crown or by any authority or person other than the person incurring the expenditure, there shall be left out of account any insurance or compensation payable in respect of the loss or destruction of any asset. This paragraph is subject to paragraph 11A (transfers of interests in oil fields: post-transfer decommissioning expenditure).

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Where the whole or part of the share of a participator (“the transferor”) of oil won from an oil field became the share, or part of the share, of another participator (“the transferee”) in pursuance of an agreement between them under which the transferor undertook to remain responsible for carrying out the transferee’s obligations in connection with the field so far as they relate to the transferred share or part, then, for the purposes of this Part of this Act—

Where— then, if the Board so direct, the reduction made under that subsection for that chargeable period shall be only what it would have been if the expenditure and other amounts allowed on the claim had been claimed before and allowed at the relevant time. In this paragraph “the relevant time” means the end of twelve months from the end of the claim period to which the claim mentioned in sub-paragraph (a) above relates.

This paragraph applies if— Paragraph 8(1) (certain subsidised expenditure to be disregarded) does not apply to any decommissioning expenditure that— Sub-paragraph (4) applies if, at the end of the transfer period, the old participator is no longer a licensee or a participator in respect of any licensed area wholly or partly included in the oil field. Decommissioning expenditure that is incurred by the old participator, after the end of the transfer period, is to be treated for the purposes of this Act as having been incurred by the new participator (and paragraph 8(1) does not apply to any such expenditure). If the old participator has transferred the whole or part of another interest in the oil field to the new participator, but the condition in sub-paragraph (1)(b) was not met in respect of the transfer, references in sub-paragraphs (2) and (4) to decommissioning expenditure are references to such proportion of that expenditure as is just and reasonable. In this paragraph— If there is, for the purposes of Schedule 17 to FA 1980, a subsequent transfer of the whole or part of an interest in the oil field mentioned in sub-paragraph (1)(a), references in this paragraph to “the old participator” include references to each participator whose interest, or part of it, in the oil field is the subject of a transfer to which this paragraph applies.

Any power to make regulations under this Schedule is exercisable by statutory instrument. A statutory instrument containing regulations under this Schedule may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons. Any power to make regulations under this Schedule includes power—

Expenditure incurred by any person in the acquisition of an asset is not allowable under section 3 or 4 of this Act for an oil field if expenditure previously incurred by another person in acquiring, bringing into existence, or enhancing the value of that asset is allowable under that section for that field. Section 4(13) of this Act applies to the preceding provisions of this sub-paragraph. Sub-paragraph (1) above shall, with any necessary modifications, have effect in relation to expenditure incurred by a person— as it has effect in relation to expenditure incurred in the acquisition of, or of an interest in, an asset.

Where, in a transaction to which this paragraph applies, a person has incurred expenditure in acquiring, bringing into existence or enhancing the value of an asset, he shall at any time be treated for the purposes of— as having incurred that expenditure only to the extent that it does not exceed the lowest of the amounts described in sub-paragraph (1ZA) below which is applicable in the particular case. Those amounts are— Subsections (1) to (3) of section 191 of the Finance Act 1993 apply to determine for the purposes of this paragraph what expenditure has at any time been incurred under a transaction to which this paragraph does not apply, as they apply in relation to expenditure for the allowance of which a claim is received by the Board after 16th March 1993. In sub-paragraph (1ZA)(a) above “loan expenditure” means expenditure in respect of interest or any other pecuniary obligation incurred in obtaining a loan or any other form of credit. The reference in sub-paragraph (1ZA)(b) above to the open market consideration for the acquisition, bringing into existence, or enhancement of the value, of an asset is a reference to the consideration which might reasonably have been given for the acquisition, bringing into existence, or enhancement of the value, of the asset (whatever the nature of the acquisition, bringing into existence or enhancement of the value) had it been made in a transaction to which this paragraph does not apply. This paragraph applies to any transaction between connected persons and to any transaction made otherwise than at arm’s length; and for the purposes of this paragraph a person is connected with another person if they are connected within the meaning of section 1122 of CTA 2010. The preceding provisions of this section shall, with any necessary modification, apply in relation to expenditure incurred by any person in acquiring an interest in an asset or in bringing into existence an asset in which he is to have an interest, or in enhancing the value of an asset in which he has an interest, as those provisions apply in relation to expenditure incurred by a person in acquiring, bringing into existence, or enhancing the value of an asset, as the case may be. The provisions of sub-paragraphs (1) to (2) above shall, with any necessary modification, apply in relation to expenditure incurred by any person in respect of— as they have effect in relation to expenditure incurred in the acquisition of, or of an interest in, an asset.

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Where an asset is used in connection with an oil field in circumstances such that section 4 of this Act applies to any expenditure incurred in acquiring, bringing into existence, or enhancing the value of that asset, then if— sub-paragraphs (2) to (4) below shall have effect. If the disposal occurs without the asset permanently ceasing to be used in connection with the field, its use in that connection shall for the purposes of section 4 of this Act and the following provisions of this paragraph be deemed to have permanently ceased at the time of the disposal. If the disposal takes place not later than the end of the claim period in which the use of the asset in connection with the field permanently ceases, the proportion of the expenditure allowable under section 4 of this Act for the relevant period (that is to say the period which, in relation to that claim period, is the relevant period for the purposes of subsection (7) of that section) or, if the claim period in question is the first relevant claim period (as defined in that section), the proportion of the expenditure so allowable for that claim period shall be computed under that section subject to the provisions of sub-paragraph (5) below. If the disposal takes place after the end of the claim period in which the use of the asset in connection with the field permanently ceases, then, as regards the claim period in which the disposal takes place— For the purposes of the computation mentioned in sub-paragraph (3) or (4) above, as the case may be— In any case where, for different parts of the expenditure incurred in the case of an asset as mentioned in sub-paragraph (1) above, different proportions thereof would be allowable under section 4 of this Act apart from sub-paragraph (5)(a) above (including a case where, for some but not all of that expenditure, the proportion thereof so allowable would be 100 per cent.), the amount or value of the consideration received or receivable for the disposition shall for the purposes of this paragraph be treated as referable to those different parts in such proportions as may be just and reasonable. Section 4(13) of this Act applies to the preceding provisions of this paragraph; and those provisions shall, with any necessary modifications, apply in relation to a disposal of an interest in an asset as they apply in relation to a disposal of an asset. Section 1122 of CTA 2010 (connected persons) shall apply for the purposes of this paragraph.

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Where in the case of an oil field, the total amount of the expenditure allowable under sections 3 and 4 of this Act on a claim for a claim period— that further amount shall be apportioned between the participators in proportions corresponding to what for that claim period would be their respective shares of any expenditure falling within section 2(9)(b)(i) of this Act; and in computing the assessable profit or allowable loss accruing to any participator in the earliest chargeable period which ends after the end of that claim period, the aggregate mentioned in section 2(4)(a) of this Act shall be increased by an amount equal to the amount apportioned to him under this paragraph. In this paragraph “the relevant provisions” means section 4(9) of this Act and paragraph 5(2) above.

Where, in consequence of the loss or destruction at any time within the period mentioned in sub-paragraph (1) of paragraph 4 above of such an asset as is mentioned in that sub-paragraph, any insurance or compensation in respect of the loss or destruction is receivable by a participator in the field or a person connected with a participator, paragraphs 4 and 6 above shall apply as if at that time the person by whom the insurance or compensation is receivable had disposed of the asset or his interest in it for an amount equal to the insurance or compensation. Section 1122 of CTA 2010 (connected persons) shall apply for the purposes of this paragraph.

Where an asset was acquired jointly by persons who are participators in two or more different oil fields (whether or not any one of those persons is a participator in more than one of those fields), then in determining for the purposes of section 4 of this Act, in the case of any one of those fields, the use which has been, or which it is reasonable to assume will be, made of the asset otherwise than in connection with that field, no regard shall be had to its use or possible use in connection with any other of those fields.

In relation to any oil field— Provided that unless and until the responsible person elects the period of six months from the end of any particular claim period, the claim period next after that claim period shall be taken to be the period of twelve months from the end of it. An election under this paragraph must be made by notice in writing to the Board.

A claim under this Schedule for the allowance of any expenditure allowable under section 3 or 4 of this Act for an oil field must be made by the responsible person to the Board and, subject to the provisions of this Part of this Act, must be made in a claim or claims for the claim period in which the expenditure is incurred, but may not be made before the determination of the field or more than 4 years after the end of the claim period in which the expenditure is incurred. A claim under this Schedule for the allowance of any expenditure allowable under section 3 or 4 of this Act for an oil field which was incurred by a person before he became a participator in the field must be made in a claim for the claim period in which he became a participator. A claim under this Schedule shall not include any expenditure allowable under section 3 or 4 of this Act which has been included in a claim under Schedule 6 to this Act. A claim must state— Where a claim for the allowance of any expenditure under section 4 of this Act for an oil field was made in relation to any asset for the claim period which, in the case of that asset, is the first relevant claim period (as defined in that section), then any claim with respect to that field made under this Schedule for any subsequent claim period must give all such information as is relevant for the purpose of enabling the Board to carry into effect the provisions of that section in relation to that asset. A claim must be in such form as the Board may prescribe and must include a declaration that all statements contained in it are correct to the best of the knowledge and belief of the person making the claim. Where— sub-paragraph (1) above shall have effect as if the reference to 4 years after the end of the claim period in which the expenditure is incurred were a reference to two years after the relevant time. In sub-paragraph (7) above “the relevant time” means the earlier of—

The Board shall by notice in writing to the responsible person inform him of their decision on the claim, stating in the notice— and where the decision relates to part only of the expenditure claimed, or claimed as so qualifying, the Board shall give a further notice or notices in relation to the remainder. In this paragraph “the relevant percentage” means the percentage mentioned in the said section 2(9)(b)(ii).

This paragraph applies if— If a claim is made under this Schedule for the allowance of the abandonment expenditure, the amount of the default payment is to be attributed to the contributing participator for the purposes of paragraphs 2(4)(b) and 3(1)(c). But the amount attributed under sub-paragraph (2) may not exceed— Sub-paragraph (2) is subject to paragraph 2B. In determining the amount which is to be attributed to the contributing participator under sub-paragraph (2), account shall be taken of the whole of the defaulter's interest in the relevant oil field. But in determining the share of the abandonment expenditure to be attributed to the defaulter under paragraph 2(4)(b), the amount which would be attributed by reference to the defaulter's interest in the relevant oil field is to be reduced or (as the case may be) extinguished by the deduction of the aggregate of—

If, in a case where sub-paragraph (5) of paragraph 2 above requires a claim made for a particular claim period to give all such information as is relevant for the purpose there mentioned in relation to an asset, a claim satisfying the requirements of that sub-paragraph is not made within twelve months after the end of that period, then, in carrying into effect the provisions of section 4 of this Act in relation to that asset for that claim period, the Board may proceed according to the best of their judgment, and may make any adjustments under any of the provisions mentioned in paragraph 6(2) of Schedule 4 to this Act accordingly.

No amount is to be attributed to a contributing participator under paragraph 2A(2) unless the following conditions are all met. The first condition is that the contributing participator is not connected with the defaulter, applying section 1122 of CTA 2010 (connected persons) for the purposes of this sub-paragraph. The second condition is that, at the end of the claim period for which the claim is made, the defaulter still has an interest in the relevant oil field which, under paragraph 2(4)(b), falls to be taken into account in determining the shares in the abandonment expenditure. The third condition is that the relevant participators have taken all reasonable steps by way of legal remedy— In sub-paragraph (4) “relevant participators” means—

An amount attributed under paragraph 2A(2) is— In paragraphs 2A and 2B and this paragraph— For the purposes of paragraph 2A, a current participator is to be regarded as defaulting on a liability to make a payment towards abandonment expenditure if the following conditions are met. The first condition is that the current participator has failed to make the payment in full on the due day. The second condition is that— In sub-paragraphs (4) and (5) “due day” means the day on which the payment towards abandonment expenditure becomes due under the relevant agreement or the abandonment programme.

If— the responsible person may appeal by notice in writing given to the Board not more than three years after the making of the claim ...; but the bringing of an appeal under this paragraph shall not affect the operation of any notice so given by the Board. On an appeal that is notified to the tribunal against a decision on a claim brought on the ground mentioned in sub-paragraph (1)(b) above, and in any proceedings arising out of such an appeal, any participator in the oil field to which the claim relates shall be entitled to be a party. An appeal against a decision on a claim may at any time before it is notified to the tribunal be abandoned by a notice in writing given to the Board by the responsible person. On an appeal that is notified to the tribunal against a decision on a claim, the tribunal may vary the decision appealed against whether or not the variation is to the advantage of all or any of the participators in the oil field to which the claim relates. The provisions of paragraphs 14A to 14I of Schedule 2 shall apply to appeals under this paragraph subject to any necessary modifications.

Where the responsible person gives notice of appeal against a decision on a claim on one or both of the grounds mentioned in paragraph 5(1)(a) above and, before the appeal is determined by the tribunal, the Board and the responsible person agree on— the appropriate amount (if any) of the expenditure claimed or, as the case may be, claimed as so qualifying shall be treated for the purposes of this Part of this Act as having been allowed by the Board on the claim, and as having been so allowed on the date on which the notice of appeal was given. For the purposes of this sub-paragraph the appropriate amount (if any) of the expenditure claimed or, as the case may be, claimed as so qualifying, is an amount thereof equal to the excess, if any, of the amount so agreed on over the corresponding amount or the total of the corresponding amounts allowed by the notice or notices previously given by the Board under paragraph 3 above. Where the responsible person gives notice of appeal against a decision on a claim on the ground mentioned in paragraph 5(1)(b) above and, before the appeal is determined by the tribunal, the Board and the responsible person agree on the shares in which the amount of any expenditure allowed on the claim, or so allowed as qualifying for supplement under section 2(9)(b)(ii) of this Act, ought to be divided between the participators for the purposes of section 2(9)(b) of this Act, the shares so agreed on shall be deemed to be the shares stated in any notice previously given by the Board under paragraph 3 above on the claim, and shall apply in the case of any part of the expenditure claimed, or claimed as so qualifying, which is by virtue of this or the following paragraph treated as having been allowed on the claim; Where the Board and the responsible person agree on the matter mentioned in sub-paragraph (1)(a), sub-paragraph (1)(b) or sub-paragraph (2) above in the circumstances there mentioned, the corresponding ground of appeal shall be treated as having been abandoned; and where by virtue of this sub-paragraph all the grounds of the appeal fall to be so treated, the appeal itself shall be treated as having been abandoned.

Where, on an appeal under paragraph 5 above that is notified to the tribunal, the tribunal determines that any amount or part of an amount in dispute is allowable under section 3 or 4 of this Act or qualifies for supplement under section 2(9)(b)(ii) of this Act, the following provisions of this paragraph shall apply; Subject to paragraph 8(2) below, the said amount or part shall be treated for the purposes of this Part of this Act as having been allowed on the claim to which the appeal relates, and as having been so allowed on the date on which the notice of appeal was given. There shall be made in any computation made under section 2 of this Act, and in any assessment to tax or determination, all such adjustments as are necessary in consequence of the determination of the tribunal.

Where— the following provisions of this paragraph shall apply. Any expenditure allowable under section 3 or 4 of this Act, which, if the decision of the Board on the claim to which the appeal under paragraph 5 above related had been in accordance with the final determination of that matter, would have been allowed by that decision, or allowed by it as qualifying for supplement under section 2(9)(b)(ii) of this Act, shall be treated for the purposes of this Part of this Act as having been allowed by the Board on the claim to the extent that it has not been previously allowed on the claim, and as having been so allowed to that extent on the date on which the original notice of appeal was given under paragraph 5 above. There shall be made in any computation made under section 2 of this Act and in any assessment to tax or determination all such adjustments or further adjustments as are necessary in consequence of the final determination. Any tax which becomes payable in consequence of any adjustment made under sub-paragraph (3) above in an assessment for a chargeable period shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from two months after the end of that period to the date of payment. For the purposes of this paragraph a matter shall not be deemed to be finally determined in any such proceedings as are mentioned in sub-paragraph (1)(b) above until a determination thereof made in any such proceedings can no longer be varied or overruled by the order of any court or the tribunal.

If ... it appears to the Board that the relevant amount was incorrectly stated in a notice of a decision under paragraph 3 above given to the responsible person for an oil field, the Board may before the expiry of the permitted period serve on the responsible Person a notice stating what appears to the Board to be the correct amount (referred to below as “the notice of variation”). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In this paragraph “the relevant amount”, in relation to a notice of a decision on a claim under paragraph 3 above, means any one or more of the following— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In this paragraph “permitted period” means the period of 4 years beginning with the date on which the notice of the decision under paragraph 3 was given (but see sub-paragraph (2C)). Where the relevant amount was overstated in the notice of decision as a result of an inaccuracy in a statement or declaration made by the responsible person (or a person acting on behalf of the responsible person) in connection with the claim— The responsible person may, by notice in writing given to the Board not more than thirty days after the notice of variation was served on him, appeal ... against the notice of variation. A notice of appeal under sub-paragraph (3) shall state the grounds on which the appeal is brought. An appeal under this paragraph may at any time before it is notified to the tribunal be abandoned by notice in writing given to the Board by the responsible person. A notice of variation may be withdrawn at any time before it becomes effective. In any case where— the notice of variation shall have effect subject to such modifications as may be necessary to give effect to that agreement; and thereupon the appeal shall be treated as having been abandoned. On an appeal that is notified to the tribunal against a notice of variation the tribunal may vary the notice, quash the notice or dismiss the appeal; and the notice may be varied whether or not the variation is to the advantage of all or any of the participators in the oil field in question. Where a notice of variation relating to a decision on a claim becomes effective, the relevant amount shall be taken for the purposes of this Part of this Act as having been reduced or increased, as the case may require, on the date on which notice of the decision was given, by such amount as may be necessary to give effect to that notice, and the Board may make such computations under section 2 of this Act and such assessments or determinations or such amendments of assessments or determinations as may be necessary in consequence of that reduction or increase. A notice of variation becomes effective for the purposes of this paragraph either— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the purposes of this section, an inaccuracy in a statement or declaration made by the responsible person (or a person acting on behalf of the responsible person) is careless if it is due to a failure by the person to take reasonable care. An inaccuracy in a statement or declaration made by the responsible person (or a person acting on behalf of the responsible person) is to be treated as careless if—

In this Schedule “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Where it appears to the responsible person for an oil field that the winning of oil from the field has permanently ceased he may by notice in writing given to the Board refer to them for their decision the question whether the winning of oil from that field has permanently ceased.

The Board shall, by notice in writing given to the responsible person, inform him of their decision on the question and, if their decision is that the winning of oil has so ceased, shall state the date which they are satisfied is that on which the winning of oil from the field in question ceased. The responsible person shall, within one month of his receiving a notice under sub-paragraph (1) above informing him of the Board’s decision, furnish a copy of that notice to every person who was at any time a participator in the field in question.

The responsible person may appeal ... against the Board’s decision by notice in writing given to the Board within three months of his receiving the notice under paragraph 2(1) above informing him thereof. An appeal under sub-paragraph (1) above may at any time before it is notified to the tribunal be abandoned by notice in writing given to the Board by the responsible person. The provisions of paragraphs 14A to 14I of Schedule 2 shall apply to appeals under this paragraph subject to any necessary modifications.

A claim for the allowance, in connection with an oil field, of any unrelievable field loss allowable under section 6 of this Act in the case of a participator in that field must be made by the participator to the Board at any time afterthe date of the decision (whether of the Board or on appeal from the Board) that the winning of oil from the oilfield in the case of which the loss accrued has permanently ceased . . .. Where a claim under this Schedule has been made and the participator by whom it was made subsequently discovers that an error or mistake has been made in the claim, he may make a supplementary claim . . .. The provisions of Schedule 5 to this Act specified in the first column of the Table set out in paragraph 1(3) of Schedule 7 to this Act shall apply in relation to a claim under this Schedule as they apply in relation to a claim under the said Schedule 5, subject to any modifications specified in the second column of that Table and with the substitution, for references to the responsible person, of references to the participator by whom the claim under this Schedule is made, for references to the claiming or allowance of expenditure, of references to the claiming or allowance of an unrelievable field loss and, for references to section 3 or 4 of this Act, of references to section 6 of this Act.

For the purposes of this Schedule a company is a petroleum company if—

The activities referred to in paragraph 1 above are—

The application to a transaction of subsection (1) or (2) of section 485 of the Taxes Act shall not be excluded by the proviso thereto (resident buyer or resident seller) if— The conditions referred to in sub-paragraph (1) above are—

Where both the buyer and the seller are resident in the United Kingdom and the Board, in pursuance of the preceding paragraphs, direct that subsection (1) or subsection (2) of section 485 of the Taxes Act is to apply to the computation of the income, profits or losses of the one, the direction may extend the application of that subsection to the computation of the income, profits or losses of the other, and where it does so adjustments shall be made under subsection (3) of that section accordingly.

Where any property is sold and either the buyer or the seller is a petroleum company or both are petroleum companies, then if— section 485 of the Taxes Act shall apply in relation to the sale as if in both subsection (1) and subsection (2) of that section paragraph (a) were omitted.

Where a petroleum company was a party to a sale of property, then, in determining for the purposes of section 485 of the Taxes Act what price the property might have been expected to fetch had the parties to the transaction been independent persons dealing at arm's length and what consequences would have ensued in computing the income, profits or losses of the seller or the buyer for tax purposes if the property had been sold for that price, it shall be assumed— and no regard shall be had to the terms of similar transactions which were capable of being varied. In this paragraph " material time " and " calendar month" have the meaning given by paragraph 3(2) of Schedule 3 to this Act.

In this Schedule— For the purposes of this Schedule—