The Petroleum Revenue Tax (Nomination Scheme for Disposals and Appropriations) Regulations 1987
These Regulations, which have effect from 9th February 1987, supplement and modify for particular cases the provisions of Schedule 10 to the Finance Act 1987 (as amended by Schedule 8 to the Finance (No. 2) Act 1987) (“Schedule 10”) establishing a nomination scheme for certain disposals and appropriations of crude oil. The nomination scheme enables a participator in an oil field to nominate to the Inland Revenue those of his proposed transactions in crude oil from that field in a particular month which he intends should relate to his share of oil from the field (“his equity production”). Where a nominated transaction is in the event fulfilled from the participator’s equity production, his liability for petroleum revenue tax purposes will be based on the price received in such of those transactions as are sales at arm’s length and on market value in other cases.