Oil Taxation Act 1983 section 6

Variation of tariff receipts allowance where normal and straddling receipts overlap

Section 6 deals with the adjustment required to a participator's tariff receipts allowance when a chargeable period contains both normal qualifying tariff receipts and straddling qualifying tariff receipts from the same user field, and those two categories of receipts relate to different oil.

• Where a chargeable period contains both "normal" and "straddling" qualifying tariff receipts from the same user field, and those receipts relate to different oil, the participator's cash equivalent of the tariff receipts allowance for that period must be adjusted
• The adjustment is made by first recalculating the allowance as if the normal receipts and the straddling receipts (or the relevant portion of them) were combined into a single total, and as if the oil to which both categories relate were treated together
• The final adjusted allowance for the period is then found by deducting from that combined figure the amount separately calculated under the straddling receipts rules in paragraph 5
• "Normal" qualifying tariff receipts are those reduced under the standard rules in subsection (1)(a) or (1)(b) of the principal section, while "straddling" receipts are those reduced under the cross-period rules in paragraph 5

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