Section 205 Provision made or imposed between ring-fence trade and other activities

(1)

Subsections (2) to (4) apply if—

(a)

a person carries on an oil-related ring-fence trade (see section 206), and

(b)

any provision is made or imposed by the person as between—

(i)

the oil-related ring-fence trade, and

(ii)

any other activities carried on by the person.

(2)

Chapters 1 and 3 to 6 (read in accordance with Chapters 2 and 8) apply in relation to the provision as if—

(a)

the oil-related ring-fence trade, and the person's other activities, were carried on by two different persons,

(b)

the provision were made or imposed as between those two persons by means of a transaction,

(c)

those two persons were both controlled by the same person at the time when the provision was made or imposed, and

(d)

a potential advantage in relation to United Kingdom taxation were conferred by the provision on each of those two persons.

(3)

Subsection (2) has effect subject to subsection (4).

(4)

Chapters 1 and 3 to 6 apply in relation to the provision only if the effect of their applying is—

(a)

that a larger amount is taken for tax purposes to be the amount of the profits of the oil-related ring-fence trade for any chargeable period, or

(b)

that a smaller amount (including nil) is taken for tax purposes to be the amount for any chargeable period of any losses of the oil-related ring-fence trade.

(5)

In subsection (4)(a), the reference to a larger amount includes, if there would not otherwise have been profits, an amount of more than nil.

Notes on Part 4

Modifications

C1: Pt. 4 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)
C2: Pt. 4 excluded (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(2); S.I. 2011/2329, art. 3
C3: Pt. 4 excluded (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(2); S.I. 2011/2576, art. 5
C4: Pt. 4 excluded (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 129(11) (with s. 147, Sch. 17)