OT20314 - Corporation Tax General

Sales of Oil etc. Other non-arm's length transactions

ICTA88\s493(3) & ICTA88\s493(4) cover those non arms length sales, (as defined) and appropriations in the course of ring fence activities which are not charged to PRT, e.g. where the company is entitled to oil from a field although not a participator, where oil is won before determination of a field. The same rules apply as for Subss(1) &(2), with the market value to be taken as that of the month of sale/appropriation.

Where ICTA88\s493(1) or (3) applies, ICTA88\s770 (transactions between associated persons at an under or overvalue) does not (ICTA88\s770(2)(c)).