PRT: computation - valuation point and gross profit
The reason that market values have to be calculated lies in the definition of Gross Profit;
Gross profit; OTA75\S2(4) and S2(5) *: for a chargeable period is the difference between the aggregate of the following amounts:
- the price received or receivable for any oil disposed of in sales at arm’s length as was delivered in the period (see OT05025),
- the aggregate market value of any oil disposed of otherwise than in sales at arm’s length as was delivered in the period (see OT05300),
- the aggregate market value of any oil appropriated in the period without being disposed of (see OT05300),
[subsections (ca) and (cb) refer specifically to light gases]
- one half of the market value of closing stocks, on the last business day of the Chargeable Period. (see OT05150),
- the excess of nominated proceeds (see OT05200),
- and one half of the market value of the closing stock for the preceding period, i.e. the opening stock.
Where a disposal is by way of sale then OTA75\SCH3\PARA1 applies to determine whether or not that sale is a sale at arm’s length (see OT05025). A sale which is not at arm’s-length will()need to have a market value calculated for it for tax purposes.
- As amended by FA94\S236 FA94\Sch23 and FA06\S146, S147, Sch 18 and Sch 26