Part V Oil Taxation

Chapter I Election by Reference to Pipe-Line Usage

234 Interpretation of Chapter and supplementary provisions.

1

In this Chapter “the 1983 Act” means the M1Oil Taxation Act 1983 and expressions used in this Chapter have the same meaning as in that Act.

2

In this Chapter—

a

election” means an election under section 231 above and “electing participator” means a participator who makes or has made an election;

b

the expenditure relief provisions” means sections 3 and 4 of the principal Act and section 3 of the 1983 Act; and

c

the initial usage fraction” shall be construed in accordance with section 231(4) above.

3

In this Chapter—

a

any reference to the assets to which an election applies is a reference to the pipe-line by reference to which the election is made together with the assets determined in accordance with subsections (5) and (6) of section 231 above;

b

any reference to the net profit period is a reference to the chargeable period which is the net profit period for the purposes of section 111 of the M2Finance Act 1981 (restriction of expenditure supplement); and

c

any reference to a development plan is a reference to a consent for, or programme of, development granted, served or approved by the Secretary of State.

4

Any reference in this Chapter to expenditure incurred on an asset is a reference to expenditure (whether or not of a capital nature) which—

a

is incurred in acquiring, bringing into existence or enhancing the value of the asset, or

b

is incurred (for any of the purposes mentioned in section 3(1) of the principal Act) by reference to the use of the asset in connection with a taxable field,

other than expenditure which, in the hands of the recipient, constitutes a tariff receipt.

5

For the purposes of this Chapter—

a

an election is “in operation” if it has been accepted by the Board; and

b

the date of an election which is in operation is the date on which the election was received by the Board.

6

The provisions of Part II of Schedule 22 to this Act shall have effect for supplementing the preceding provisions of this Chapter.

7

The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the provisions of this Chapter.