Finance Act 1993

MiscellaneousU.K.

208 Residence: available accommodation.U.K.

(1)In section 336 of the Taxes Act 1988 (temporary residents in the United Kingdom) the following subsection shall be inserted after subsection (2)—

“(3)The question whether—

(a)a person falls within subsection (1)(a) above, or

(b)for the purposes of subsection (2) above a person is in the United Kingdom for some temporary purpose only and not with the intention of establishing his residence there,

shall be decided without regard to any living accommodation available in the United Kingdom for his use.”

(2)In section 9 of the M1Taxation of Chargeable Gains Act 1992 (residence, including temporary residence) the following subsection shall be inserted after subsection (3)—

“(4)The question whether for the purposes of subsection (3) above an individual is in the United Kingdom for some temporary purpose only and not with any view or intent to establish his residence there shall be decided without regard to any living accommodation available in the United Kingdom for his use.”

(3)In consequence of subsection (1) above, in section 267(4) of the M2Inheritance Tax Act 1984 (residence in United Kingdom determined as for purposes of income tax) the words “but without regard to any dwelling-house available in the United Kingdom for his use” shall be omitted.

(4)Subsections (1) and (2) above shall have effect for the year 1993-94 and subsequent years of assessment.

(5)Subsection (3) above shall have effect where the year of assessment concerned is 1993-94 or a subsequent year of assessment.

209 Gas levy.U.K.

(1)In section 123 of the M3Finance Act 1990 (gas levy) in subsection (3) (future variation or termination of rights and liabilities under tax-exempt contracts etc. to be disregarded, except in certain cases) at the end of paragraph (b) there shall be added the words “ or pursuant to a term in a contract or document which is certified for the purposes of this paragraph by the Secretary of State with the approval of the Treasury ”.

(2)After subsection (3) of that section there shall be inserted the following subsections—

“(3A)The Secretary of State shall not certify a term for the purposes of paragraph (b) of subsection (3) above except on the application of the person winning the gas and unless the Secretary of State is satisfied—

(a)that the term (however expressed) provides for termination on the ground that the winning of gas in accordance with the contract or document has ceased to be commercially viable; and

(b)that the term was in the contract or document immediately before 16th March 1993; and

(c)that the termination purports to be in pursuance of the term; and

(d)that the term has been properly invoked.

(3B)For the purpose of determining whether a term is properly invoked the Secretary of State—

(a)may require the person winning the gas to supply him with any expert assessment provided under the contract or document;

(b)if no such assessment has been made, or if the Secretary of State considers it desirable for a further expert assessment to be obtained, may require the person winning the gas to obtain and supply him with an expert assessment;

and in this subsection “assessment” means an assessment as to whether winning gas in accordance with the contract or document has ceased to be commercially viable.”

(3)Where a person ceases to be liable to pay gas levy in respect of any gas won by him by virtue of the fact that winning the gas, in accordance with a contract or document, has ceased to be commercially viable, then, with respect to any chargeable period which ends—

(a)after that cessation of liability to pay gas levy, and

(b)after 30th June 1993,

any oil (whether or not consisting of gas) won and saved from the field from which the gas is won shall cease to be disregarded under section 10(1)(b) of the M4Oil Taxation Act 1975 (PRT disregard of up to 5 per cent of oil production incidental to the production of gas sold to the British Gas Corporation).

210 Trading funds.U.K.

Schedule 22 to this Act (which contains provisions about trading funds) shall have effect.