Part 2

Trading income
Chapter 16A

Oil activities

Oil valuation

Valuation where market value taken into account under section 2 of OTA 1975
225F
1
This section applies if a person disposes of oil in circumstances such that the market value of the oil—
a
falls to be taken into account under section 2 of
OTA
1975, otherwise than by virtue of paragraph 6 of Schedule 3 to that Act, in calculating for petroleum revenue tax purposes the assessable profit or allowable loss accruing to that person in a chargeable period from an oil field, or
b
would so fall but for section 10 of that Act.
2
For income tax purposes, the disposal of the oil, and its acquisition by the person to whom it was disposed of, are to be treated as having been for a consideration equal to the market value of the oil—
a
as so taken into account under section 2 of that Act, or
b
as would have been so taken into account under that section but for section 10 of that Act.
Pt. 2 Ch. 16A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 1 para. 2 (with Sch. 9 paras. 1-9, 22)