OT20311 - Corporation Tax General

Sales of Oil etc. Non-arm's length

For PRT purposes and therefore for ICTA88\s493 purposes, a non-arm’s length transaction is one which does not satisfy all of the following three conditions set out in OTA75\Sch3(1).

(1) the contract price is the sole consideration for the sale

(2) the terms of the sale are not affected by any commercial relationship (other than that created by the contract itself) between the seller or any person connected with the seller and the buyer or any person connected with the buyer

(3) neither the seller nor any person connected with him has, directly or indirectly, any interest in the subsequent resale or disposal of the oil or any product derived therefrom.