Finance Act 1987

61Nomination of disposals and appropriations

(1)The provisions of Schedule 10 to this Act shall have effect, being provisions for and in connection with the establishment of a scheme of nominations by participators in oil fields of certain proposed sales, supplies and appropriations of oil.

(2)Nothing in this section or Schedule 10 to this Act applies—

(a)to oil which is gaseous at a temperature of 15 degrees centigrade and pressure of one atmosphere; or

(b)to oil of a kind which is normally disposed of crude by deliveries in quantities of 25,000 metric tonnes or less; or

(c)to oil which is excluded from this section by regulations under subsection (8) below;

and references to oil in this section and Schedule 10 to this Act shall be construed accordingly.

(3)As respects each participator in an oil field, it shall be determined, for each calendar month in a chargeable period beginning with the month of March 1987, whether his aggregate nominated proceeds, as defined in Schedule 10 to this Act, exceed the proceeds of his disposals and appropriations in that month, as defined in subsection (6) below and, if they do, that excess shall be brought into account in accordance with subsection (5) below.

(4)For each chargeable period of an oil field, "the excess of nominated proceeds for the period", in relation to a participator in that field, means the sum of the excess (if any) of each of the months in that chargeable period, as determined in his case under subsection (3) above.

(5)In subsection (5) of section 2 of the principal Act (amounts to be taken into account in determining whether a gross profit or loss accrues to a participator in any chargeable period) at the end of paragraph (d) there shall be added “and

(e)the excess of the nominated proceeds for that period, as defined in section 61 of the Finance Act 1987.”

(6)In relation to any calendar month, the proceeds of a participator's disposals and appropriations from an oil field means the total of—

(a)the price received or receivable for so much of any oil forming part of his equity production from the field in that month as was disposed of by him crude in sales at arm's length; and

(b)the market value, ascertained in accordance with Schedule 3 to the principal Act, of the rest of his equity production from the field in that month;

and in this subsection any reference to a participator's equity production from an oil field in any month shall be construed in accordance with paragraph 1(2) of Schedule 10 to this Act.

(7)The Treasury may by regulations made by statutory instrument make provision for any purpose for which regulations described as "Treasury regulations" may be made under Schedule 10 to this Act.

(8)The Board may by regulations made by statutory instrument make provision, including provision having effect with respect to things done on or after 9th February 1987,—

(a)as to oil which is excluded from this section, as mentioned in subsection (2) above; and

(b)for any purpose for which regulations, other than those described as "Treasury regulations", may be made under Schedule 10 to this Act;

and regulations made by virtue of paragraph (a) above may amend paragraphs (a) and (b) of subsection (2) above.

(9)A statutory instrument made in the exercise of the power conferred by subsection (7) or subsection (8) above shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament.