Finance Act 1982

• (b) where in determining the gross profit accruing to a participator from a field in a chargeable period the aggregate of the amounts mentioned in paragraphs (a) to (c) of subsection (5) of section 2 of the principal Act falls to be increased under section 140 of this Act (whether as respects all oil or as respects a prticular kind or kinds of oil), the difference mentioned in paragraph 14(3)(b) (or as the case may be, the difference so far as relating to oil of the particular kind or kinds in question) shall be increased by multiplying it by the fraction mentioned in subsection (2) of section 140;

• (c) for each reference in paragraph 14(10) to an assessable profit there shall be substituted a reference to a gross profit; ...

• (d) any reference in paragraph 14(10) to an allowable loss shall be omitted; and

• (e) in the case of paragraphs 14A to 14I of Schedule 2, with such modifications as may be necessary

8

Paragraphs 5(2) to (4) and 7 above shall apply in relation to an assessment to APRT under section 142(1) of this Act as if it were an assessment under paragraph 5.

Overpayment of tax

9

• (1) Where in respect of any oil field a participator has paid an amount of APRT for a chargeable period which exceeds the amount of APRT payable therefor the amount of that excess shall be repaid to him.

• (2) Where in respect of any oil field the amount paid for any chargeable period by a participator by way of instalments under paragraph 2 above exceeds the aggregate of his liabilities mentioned in sub-paragraph (4) of that paragraph, the amount of that excess shall be repaid to him.

Interest

10

• (1) APRT payable for a chargeable period but not paid before the end of the second month after the end of that period shall carry interest from the end of that month until payment.

• (2) Any amount payable by a participator as an instalment in respect of a chargeable period for a field and not paid by him in the month in which it ought to be paid shall carry interest from the end of that month until—

• (a) payment of the amount, or

• (b) two months after the end of that period,

whichever is the earlier.

• (3) Where, in accordance with paragraph 14 of Schedule 2 to the principal Act as applied by paragraph 7 above, APRT may be withheld until the determination or abandonment of an appeal, the interest on that APRT may also be withheld until the edetermination or abandonment of that appeal.

• (4) Where an amount of APRT or an amount paid by way of instalment becomes repayable, that amount shall carry interest from—

• (a) two months after the end of the chargeable period in respect of which the APRT or the instalment was paid, or

• (b) the date on which the amount was paid,

whichever is the later, until the order for repayment is issued.

• (5) For the purposes of sub-paragraph (2) above a payment on account of an overdue instalment shall, so far as possible, be attributed to the earliest month for which an instalment is overdue ; and for the purposes of sub-paragraph (4) above any instalment or part of an instalment that becomes repayable shall, so far as possible, be regarded as consisting of the instalment most recently paid.

• (6) In its application (by virtue of paragraph 1 of Schedule 2 to the principal Act) to interest payable under sub-paragraph (1) or sub-paragraph (2) above, section 69n of the Taxes Management Act 1970 shall have effect with the omission of the words “ charged and due and payable under the assessment to which it relates ”.

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) Any reference in this paragraph to interest is a reference to interest at the rate applying under paragraph 15 of Schedule 2 to the principal Act.

Transitional provisions

11

• (1) In any case where, by virtue of section 105 of the Finance Act 1980, a sum is paid by a participator as an advance payment of tax in respect of an oil field for the chargeable period ending on 30th June 1983 then,—

• (a) to the extent that the sum so paid does not exceed his liability to APRT for that period, it shall be deemed to be a payment of APRT for that period; and

• (b) subsection (5) of that section (treatment of advance payments) shall apply to any such sum only to the extent that it exceeds that liability to APRT.

• (2) In subsection (7) of that section the reference to tax assessed on a participator in respect of a field for a chargeable period shall include, for the chargeable period ending on 30th June 1983, a reference to the amount (if any) of APRT payable by him in respect of that field for that period.

12

• (1) Every participator in an oil field shall in March 1983 and in each of the four succeeding months pay to the Board an amount equal to one-fifth of the amount, if any, shown in the statement delivered by the participator under paragraph 10(1)(a) of Schedule 16 to the Finance Act 1981 as supplementary petroleum duty payable by him in respect of the field for the chargeable period ending on 31st December 1982.

• (2) Paragraphs 2(4) and 9 above shall apply in relation to any payment made by the participator under sub-paragraph (1) above as if it were an instalment under paragraph 2 above paid in respect of the chargeable period ending on 30th June 1983 ; but for the purposes of this sub-paragraph the amount of the participator’s liability to pay any APRT as mentioned in paragraph 2(4) above shall be reduced by the amount of any APRT deemed to have been paid by him in accordance with paragraph 11 above.

• (3) Paragraphs 3, 4 and 10 above shall apply in relation to a payment under sub-paragraph (1) above as if it were an instalment under paragraph 2 above.

13

• (1) If, in respect of the chargeable period ending on 30th June 1983, any sum is payable by a participator in accordance with section 1 of the Petroleum Revenue Tax Act 1980, then, so far as the net amount of that sum is concerned, only one-fifth shall become payable at the time specified in that section and the remaining four-fifths shall be paid in four equal monthly instalments in the months of September to December 1983, inclusive.

• (2) The reference in sub-paragraph (1) above to the net amount of any sum payable in accordance with section 1 of the Petroleum Revenue Tax Act 1980 is a reference to the sum specified in paragraph (b) of subsection (1) of that section less any amount which is treated as (or deemed to be) paid as part of that sum—

• (a) by virtue of section 105(5) of the Finance Act 1980, as applied by paragraph 11(1)(b) above; or

• (b) by virtue of paragraph 2(4)(b) above, as applied by paragraph 12(2) above.

• (3) Any amount payable by a participator as an instalment by virtue of sub-paragraph (1) above and not paid by him in the month in which it ought to be paid shall carry interest from the end of that month until payment.

• (4) Paragraph 15 of Schedule 2 to the principal Act (interest on assessed tax) shall not apply in relation to so much of the tax charged in an assessment on the participator for the chargeable period referred to in sub-paragraph (1) above (excluding and APRT so charged) as is equal to or less than the net amount referred to in that sub-paragraph and payable by him, and in relation to so much if any of that tax as exceeds that net amount paragraph 15 shall apply with the substitution for the words “two months after the end of the period” of the words “ the end of October 1983 ”.

• (5) If, in respect of the chargeable period referred to in sub-paragraph (1) above, any amount of tax charged by an assessment to tax or paid on account of tax so charged becomes repayable under any provision of Part I of the principal Act, paragraph 16 of Schedule 2 to the principal Act (interest on such repayments) shall have effect in relation to that amount with the substitution for the words following “per annum” of the words “ from the end of October 1983 unti repayment ”.

• (6) Sub-paragraphs (5) to (8) of paragraph 10 above shall apply for the purposes of sub-paragraphs (3) and (5) above asd they apply for the purposes of sub-paragraphs (2) and (4) of paragraph 10.

Part II — Miscellaneous

Repayment of APRT

14

• (1) If a participator in an oil field has an excess of APRT credit for the ninth chargeable period following the first chargeable period referred to in section 139(1)(a) of this Act, then, on the making of a claim the amount of that excess shall be repaid to him.

• (2) For the purposes of this paragraph there is an excess of APRT credit for the ninth chargeable period referred to in subparagraph (1) above if any of that credit would, apart from this paragraph, fall to be carried forward to the next chargeable period in accordance with section 139(4) of this Act; and the amount of the excess is the amount of the credit which would fall to be so carried forward.

• (3) A claim under sub-paragraph (1) above shall be made not earlier than two months after the expiry of the ninth chargeable period referred to in that sub-paragraph.

• (4) In any case where—

• (a) a claim is made under sub-paragraph (1) above before an assessment is made for the ninth chargeable period referred to in that sub-paragraph, and

• (b) the APRT credit for that period exceeds the amount of tax which, in the statement delivered under section 1(1)(a) of the Petroleum Revenue Tax Act 1980, is shown to be payable by the participator concerned in accordance with the Schedule to that Act for that period in respect of the oilfield in question,

the amount of the excess shall be repaid to the participator and that repayment shall be regarded as a payment on account of ny amount which may fall to be repaid to him by virtue of sub-paragraph (1) above.

• (5) Paragraph 10(4) above shall not apply to any amount of APRT which is repayable only on the making of a claim under sub-paragraph (1) above.

• (6) Amounts repaid to a participator by virtue of this paragraph shall be disregarded in computing his income for the purposes of income tax or corporation tax.

Transfer of interest in fields

15

• (1) This paragraph has effect in a case where Part I of Schedule 17 to the Finance Act 1980 applies (transfer of interests in oil fields) and expressions used in the following provisions in this paragraph have the same meaning as in that Schedule.

• (2) For the purpose of determining whether the new participator is liable to pay an amount of APRT, but for no other purpose, subsection (1) of section 139 nof this Act shall apply as if any gross profit which at any time before the transfer had accrued to the old participator from the field had accrued at that time to the new participator or, if the transfer is of part of the old participator’s interest in the field, as if a corresponding part of that gross profit had at that time accrued to the new participator.

• (3) There shall be treated as the APRT credit of the new participator the whole or, if the transfer is of part of the old participator’s interest in the field, a corresponding part of so much, if any, of the old participator’s APRT credit in respect of that field for the transfer period as exceeds his liability for petroleum revenue tax for that period.

• (4) For the purposes of computing whether any, and if so what, amount of APRT is payable by the old participator and the new participator for the transfer period or any later chargeable period, it shall be assumed that any application or proposal made in relation to the transfer under paragraph 4 or paragraph 5(1) of Schedule 17 to the Finance Act 1980 and in respect of which the Board have not notified their decision will be accepted by the Board.

Net profit periods

16

• (1) For the purposes of sections 111, 112 and 113 of the Finance Act 1981 (determination of ner profit periods etc.) the total assessable profits which have accrued to a participator from an oil field at the end of a chargeable period may in addition to being set against allowable losses be set against the APRT paid by the participator in respect of that oil field for chargeable periods up to and including that period and accordingly those sections shall have effect subject to the following modifications.

• (2) In subsection (2) of section 111 (calculation of net profit) for the words from “exceed the total” to the end there shall be substituted the words “ exceed the aggregate of the total allowable losses that have so accrued to him and the total amount of advance petroleum revenue tax paid by him in respect of that field for chargeable periods up to and including that period. ” and at the end of that subsection there shall be inserted the following subsection—

(2A) For the purposes of subsection (2) above the total amount of advance petroleum revenue tax paid by the participator does not include any amount of that tax repaid to him before the end of the chargeable period first referred to in that subsection or any amount of that tax subsequently repaid to him under section 142(1) of the Finance Act 1982 or under paragraph 9 of Schedule 19 to that Act.

.

• (3) In section 112 (application of section 111 where an interest in an oil field is transferred) the following subsection shall be inserted after subsection (4)—

(4A) Subsections (2) and (2A) of section 111 shall have effect as if references to the amount of advance petroleum revenue tax paid by the new participator or repaid to him included references to the amount of that tax paid by or repaid to the old participator or, where the old participator has transferred part of his interest, such part of that amount as is just and reasonable.

.

• (4) In section 113 (relief where total allowable losses exceed total allowable profits after the net profit period) the following subsection shall be substituted for subsection (1)—

(1) This section has effect where the aggregate of— (a) the total allowable losses that have accrued to a participator from an oil field in chargeable periods up to and including a chargeable period ending not more than three years after his net profit period, and (b) the amount of advance petroleum revenue tax paid by him in respect of that field for those periods less any such tax repaid to him before the end of those periods or repaid subsequently under section 142(1) of the Finance Act 1982 or paragraph 9 of Schedule 19 to that Act, exceeds the total assessable profits (without any reduction under section 7 or 8 of the principal Act) that have so accrued to him.

.

Abandoned fields

17

• (1) The provisions of this paragraph apply where—

• (a) the responsible person for an oil field has given notice under paragraph 1 of Schedule 8 to the principal Act that the winning of oil from the field has permanently ceased;

• (b) he has been notified of a decision (whether of the Board or on appeal from the Board) that the winning of oil has so ceased; and

• (c) the date stated in that decision as the date on which the winning of oil from the field ceased is earlier than the expiry of the ninth chargeable period following the first chargeable period referred to in section 139(1)(a) of this Act.

• (2) Where a participator in the field in question has an amount of APRT credit—

• (a) which cannot be set against a liability for petroleum revenue tax under section 139(3) of this Act, and

• (b) which is not repayable by virtue of any other provision of this Schedule,

then, on the making of a claim, that amount shall be repaid to him.

• (3) Paragraph 10(4) above shall not apply to any amount of APRT which is repayable only on the making of a claim under sub-paragraph (2) above.

• (4) Any claim under sub-paragraph (2) above shall be made before any claim for any unrelievable field loss allowance under section 6 of the principal Act ; and any amount of APRT which is repayable by virtue of such a claim shall be left out of account in determining the amount of any such loss.

• (5) Amounts repaid to a participator under this paragraph shall be disregarded in computing his income for the purposes of income tax and corporation tax.

Part III — Amendments

18

In section 2 of the principal Act, at the beginning of subsection (4), there shall be inserted the words “ For the purposes of the tax (including advance petroleum revenue tax) ”.

19

• (1) In paragraph 13 of Schedule 2 to the principal Act for the words from “so far as” to “four months” there shall be substituted the words “ and payable shall be due within six months ”.

• (2) This paragraph has effect with respect to chargeable periods ending on or after 30th June 1983.

20

In sub-paragraph (2) and (4) of paragraph 5 of Schedule 3 to the principal Act (liability for petroleum revenue tax and interest in the case of transfers to associated companies) the references to tax and to interest payable under Part I of that Act shall include references to APRT and to interest payable under paragraph 10 or paragraph 13 above.

21

In section 1 of the Petroleum Revenue Tax Act 1980 (payments on account of petroleum revenue tax)—

• (a) at the end of paragraph (b) of subsection (1) (computation of payments) there shall be added the words “ less an amount equal to his APRT credit for that chargeable period in respect of that oil field. ”; and

• (b) in subsection (3) (repayment of excess) after the words “tax so charged” there shall be inserted the words “ less the amount of the APRT credit deducted in accordance with subsection (1)(b) above from the tax shown in the statement ”; and

• (c) the following subsections shall be inserted after subsection (3)—

(3A) In subsections (1) and (3) above “APRT credit” has the meaning given by section 139(4) of the Finance Act 1982. (3B) Paragraphs 3, 8 and 9 of Schedule 2 to the principal Act (penalties for failure to make returns under paragraph 2 of that Schedule) shall apply in relation to statements required to be made under subsection (1)(a) above as they apply in relation to returns required to be made under paragraph 2 of that Schedule.

Schedule 20

1

The National Savings Bank Act 1971 shall have effect subject to the following amendments.

2

In subsection (2) of section 3 (provisions as to investment and ordinary deposits)—

• (a) after the words “investment deposits” there shall be inserted the words “ and with respect to investment deposits of different descriptions ”; and

• (b) after the words “investment deposit” there shall be inserted the words “ or an investment deposit of a particular description ”.

3

• (1) In section 4 (power by order to limit amount of deposits) the following subsection shall be inserted after subsection (1)—

(1A) The Treasury may by order prescribe an amount as the minimum balance for investment accounts and may provide for converting into a different description of investment account any account into which investment deposits of any description are made if the balance of that account falls below the minimum balance so prescribed for an account of that description.

• (2) At the end of paragraph (a) of subsection (2) of section 4 there shall be inserted the words “ and with respect to investment deposits of different descriptions ”.

4

• (1) In subsection (1) of section 5 (interest on ordinary deposits) after the words “other rate” there shall be inserted the words “ or rates ” and at the end of the subsection there shall be added the words

and the Treasury may determine different rates of interest in relation to amounts deposited in any ordinary fdeposit account by reference to any one or more of the following factors, namely— (a) the balance of the account at any time or over any period or the aggregate balance of that account and the depositor’s other ordinary deposit accounts at any time or over any period; and (b) the number of withdrawals from that account over any period or the number of withdrawals from that account and the depositor’s other ordinary deposit accounts.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

• (1) In section 6 (interest on investment deposits) at the end of subsection (1) there shall be added the words “ and different terms may be prescribed in relation to different descriptions of investment deposits ”.

• (2) In subsection (2) of section 6, after the words “in relation to” there shall be inserted the words “ different descriptions of investment deposits and ”.

• (3) After subsection (2) of section 6 there shall be inserted the following subsection:—

(2A) Without prejudice to the generality of subsection (2) above, the Treasury may determine, in relation to an account into which investment deposits of any description are made, different rates of interest by reference to any one or more of the following factors, namely,— (a) the balance of that account at any time or over any period or the aggregate balance of the account and the depositor’s other accounts of the same description, or the depositor’s other investment accounts of any description, at any time or over any period; and (b) the number of withdrawals from that account over any period or the number of withdrawals from that account and the depositor’s other accounts of the same description, or the depositor’s other investment accounts of any description, over any period.

• (4) In subsection (3) of section 6 for the words following “investment deposits” there shall be substituted the words “ or investment deposits of a particular description; and any such alteration may affect deposits received at or before, as well as after the time the alteration is made ”.

6

In section 7 (withdrawal of deposits)—

• (a) in subsection (1) for the words “deposit, or part of a deposit,” there shall be substituted the words “ ordinary deposit, or part of an ordinary deposit, ”; and

• (b) the following subsection shall be substituted for subsection (2)—

(2) The terms as to withdrawal of investment deposits shall be such as may from time to time be prescribed.

.

7

In subsection (1) of section 8 (matters which may be included in regulations under section 2 of the Act)—

• (a) the following paragraph shall be substituted for paragraph (b)—

(b) for the giving of statements of accounts or the issuing of depositors’ books and for prescribing the entries to be made in such books;

; and

• (b) in paragraph (d) of that subsection (entries, etc. to be proof of certain matters) for the words “or acknowledgements made” there shall be substituted the words “ , acknowledgements or statements of accounts made or given ”.

8

In section 27 (interpretation) after the definition of “the Commissioners” there shall be inserted the following definition—

“interest”, in relation to investment deposits, includes any bonus or other payment, whether payable annually or otherwise, which constitutes income derived from the whole or any part of the deposits.

SCHEDULE 21

Capital Allowances

1

• (1) Section 26 of the Capital Allowances Act 1968 (determination and review of percentage rates, for tax purposes, on wear and tear allowances for plant and machinery) shall be amended as follows.

• (2) In subsection (2) for the words from " a Board of Referees " to " and the Referees " there shall be substituted the words " the tribunal, who ".

• (3) In the proviso to subsection (2), and in subsection (3), for the word " Referees " in each place where it occurs there shall be substituted the word " tribunal ".

• (4) For subsection (7) there shall be substituted the following subsection—

(7) In this section ' tribunal' means the tribunal established under section 463 of the principal Act.

2

The Income Tax (Applications for Increase of Wear and Tear Percentages) Regulations 1950 shall have effect as if for references to the Board of Referees there were substituted references to the tribunal.

The tribunal

3

• (1) For paragraph (a) of section 463 of the Taxes Act (constitution of tribunal) there shall be substituted the following paragraph—

(a) a chairman, appointed by the Lord Chancellor, and

.

• (2) In this Schedule " tribunal" means the tribunal established under section 463 of the Taxes Act.

Savings and transitionals

4

• (1) Section 54 of the Taxes Management Act 1970 (settling of appeals by agreement) shall apply to the tribunal in relation to the exercise of functions transferred by section 156 of this Act as it applied, by virtue of paragraph 8 of Schedule 4 to that Act, to the Board of Referees.

• (2) Section 156 of this Act shall not affect the validity of anything done by or in relation to the Board of Referees before the commencement of that section ; and anything which at that date is in process of being done by or in relation to the Board may be continued by or in relation to the tribunal.

SCHEDULE 22

Part I — Miscellaneous Customs and Excise and Value Added Tax

Part II — Vehicles Excise Duty

Part III — Gaming Machine Licence Duty

Part IV — Income and Corporation Tax: General

Part V — Option Mortgage Schemes

Part VI — Capital Gains

Part VII — Capital Transfer Tax

Part VIII — Stamp Duty

Part IX — Oil Taxation

Part X — Board of Referees

Part XI — Spent Enactments

Duties on spirits, beer, wine, made-wine and cider.

Hydrocarbon oil, etc.

Aviation gasoline.

Increase of chattel exemption.

Extension of general relief for gifts.

Increase of chattel exemption.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Determination of oil fields.

Dissolution of Board of Referees.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Alternative valuation of ethane used for petrochemical purposes.

Variable rates of interest for government lending.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table A — General Rates of Duty

Table B — Rates of Duty on Goods Vehicles Used for Drawing Trailers

Table A — . . .

Part I — General Provisions

Vehicles chargeable at the basic rate of duty

Vehicles exceeding 7.5 but not exceeding 12 tonnes plated weight

Rigid goods vehicles exceeding 12 tonnes plated gross weight

Tractor units exceeding 12 tonnes plated train weight

Special types of vehicles

Farmer’s goods vehicles and showmen’s goods vehicles

Smaller goods vehicles

Vehicles treated as having reduced plated weights

Plated and unladen weights

Goods vehicles used partly for private purposes

Exempted vehicles

Tractor units used with semi-trailers having only one axle when duty paid by reference to use with semi-trailers having more than one axle

Interpretation

Disposals on a no-gain/no-loss basis

Subsequent disposals following no-gain/no-loss disposals

The repeals in the Finance Act 1981 do not affect licences taken out before 10th March 1982.

1

The repeals of sections 131(6) and 249(5) of the Income and Corporation Taxes Act 1970 have effect in relation to payments of interest made, and the repeal of section 416(4) has effect in relation to securities issued, after 5th April 1982.

2

The repeals in section 36 and 36A of the Finance (No. 2) Act 1975 have effect for the year 1982–83 and subsequent years of assessment.

1

The repeals of—

• (a) section 26(2A) of the Finance Act 1975,

• (b) paragraph 4A of Schedule 15 to the Finance Act 1980, and

• (c) section 99 of and Schedule 15 to the Finance Act 1981,

together with the repeals in Schedule 4 to the Finance Act 1975 relating to Schedule 15 to the Finance Act 1981, have effect in relation to deaths on or after 15th November 1976.

2

The repeal of paragraph 12(1) and (2) of Schedule 5 to the Finance Act 1975 has effect as from 1st January 1982.

3

The remaining repeals, except those in section 86 of the Finance Act 1980, have effect in relation to events after 8th March 1982 (or, in a case within Part II of Schedule 15 to this Act, 31st March 1983 or, as the case may be, 31st March 1984).

1

The repeal in section 12(3) of the Oil Taxation Act 1975 has effect in relation to determinations made after 31st December 1981.

2

The repeal of section 105 of the Finance Act 1980 does not have effect in relation to chargeable periods ending on or before 30th June 1983.

3

The repeal of sections 122 to 128 of and Schedule 16 to the Finance Act 1981 does not have effect in relation to chargeable periods ending on or before 31st December 1982.

Editorial notes