Oil Taxation Act 1975 Schedule 3 paragraph 11

Restriction of amount of reduction under section 8(1)

Paragraph 11 of Schedule 3 prevents participators from gaining an excessive oil allowance reduction by submitting late expenditure claims that inflate the reduction beyond what it would have been had the claims been made on time.

• This provision applies where an expenditure claim under Schedule 5 or 6 is made after the "relevant time" — that is, more than twelve months after the end of the claim period to which the claim relates.
• If the late claim results in a larger reduction under the oil allowance (section 8(1)) than would have applied had the claim been submitted and allowed on time, the Board may intervene.
• Where the Board issues a direction, the oil allowance reduction for the chargeable period in question is limited to the amount it would have been if the expenditure had been claimed and allowed at the relevant time.
• The effect is that late claims cannot be used to artificially increase the oil allowance reduction — the participator receives only the reduction that would have applied under timely filing.

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