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Section 195A Oil licence swapsF1

United Kingdom

(1)

Sections 195B to F2195F apply for the purposes of corporation tax on chargeable gains.

(2)

In those sections—

  • “licence-consideration swap” means a case where conditions A, B, C and D are met;

  • “mixed-consideration swap” means a case where conditions A, B, C and E are met.

(3)

Condition A is that a company (“company A”) disposes of one or more UK licences to another company (“company B”), by way of a bargain at arm's length (“disposal A”).

(4)

Condition B is that company B disposes of one or more UK licences to company A, by way of a bargain at arm's length (“disposal B”).

(5)

Condition C is that either or both of the following paragraphs applies—

(a)

the licence, or at least one of the licences, comprised in disposal A relates to a developed area;

(b)

the licence, or at least one of the licences, comprised in disposal B relates to a developed area.

(6)

Condition D is that both—

(a)

disposal A is the only consideration given for disposal B, and

(b)

disposal B is the only consideration given for disposal A.

(7)

Condition E is that either—

(a)

disposal A is the only consideration given for disposal B, or

(b)

disposal B is the only consideration given for disposal A,

(and accordingly one of the disposals is part of the consideration given for the other disposal).

(8)

In this section and sections 195B to 196 a reference to disposal of a UK licence includes—

(a)

a disposal of an interest in a UK licence, and

(b)

a disposal of a UK licence, or an interest in a UK licence, only so far as the licence relates to part of the licensed area.

Annotations

Textual amendments

F1

Ss. 195A-195E inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2009 (c. 10), Sch. 40 para. 5

F2

Word in s. 195A(1) substituted (with effect in accordance with Sch. 15 para. 4 of the amending Act) by Finance Act 2011 (c. 11), Sch. 15 para. 1