Corporation Tax Act 2010 section 597

Cases where no additional charge due

Section 597 provides that no additional oil contractor ring fence tax charge arises for a joint venture company or member of a joint venture group where there has been no increase in shareholding.

• This section applies to joint venture companies and members of joint venture groups in the context of oil contractor ring fence tax entry charges.
• Where there is no increase in the shareholding of the relevant entity, no additional entry charge is due.
• The rule protects both individual joint venture companies and members of wider joint venture groups from being subjected to an extra tax charge in the absence of a change in ownership stake.
• This provision consolidates earlier statutory instrument rules alongside the original Finance Act 2006 provisions into a single clear rule.