Chapter 6: Supplementary charge in respect of ring fence trades
Section 330: Supplementary charge in respect of ring fence trades
1075.This section imposes an additional charge to tax on an adjusted measure of profits from the ring fence trade. It is based on section 501A(1), (2), (3) and (12) of ICTA.
1076.The adjustment to profits for this purpose is that financing costs, defined in section 331, are left out of account.
1077.Subsection (5) makes Chapter 6 subject to Chapter 7, which contains provisions that reduce the supplementary charge for certain new oil fields.
Section 331: Meaning of “financing costs” etc
1078.This section defines the term “financing costs” for the purposes of the supplementary charge. It is based on section 501A(4) to (11) of ICTA.
Section 332: Assessment, recovery and postponement of supplementary charge
1079.This section sets out the arrangements for the administration of the supplementary charge. It is based on section 501B of ICTA.
1080.The general rule is that the supplementary charge is treated for all administrative purposes as corporation tax, unless specific rules apply. In particular, this ensures that the relevant rules in TMA and in Schedule 18 to FA 1998 can apply.
