SCHEDULES
SCHEDULE 15Oil activities: transferable tax history
PART 8TTH elections: conditions and procedure
56Election conditions: associated companies
1
A TTH election may only be made if—
a
the seller and purchaser are not associated with one another on the licence transfer date,
b
the corporate restructuring condition is met, or
c
the hive down condition is met.
2
The “corporate restructuring condition” is met for the purposes of a TTH election if —
a
the seller and purchaser are associated with one another on the licence transfer date, and
b
either—
i
a third party election is made in respect of the TTH asset within the permitted period, or
ii
a hive down election is made in respect of the TTH asset within the permitted period.
3
For the purposes of sub-paragraph (2)(b)(i)—
a
a “third party election” is an election made between two companies that are not associated with one another, and
b
the “permitted period” in relation to a third party election in respect of the TTH asset is—
i
the period of 90 days ending with the licence transfer date referred to in sub-paragraph (2)(a), or
ii
the period of 90 days beginning with that date.
4
For the purposes of sub-paragraph (2)(b)(ii)—
a
a “hive down election” is an election in respect of which the hive down condition is met, and
b
the “permitted period” in relation to a hive down election in respect of the TTH asset is the period of 180 days ending with the licence transfer date referred to in sub-paragraph (2)(a).
5
The “hive down” condition is met for the purposes of a TTH election if the seller and purchaser—
a
are associated with one another on the licence transfer date, but
b
before the end of the period of 90 days beginning with that date, the purchaser ceases to be associated with—
i
the seller, and
ii
any other company that is associated with the seller.
6
See paragraph 98 of this Schedule and section 271 of CTA 2010 for further provision about the meaning of “associated companies”.