Taxes Management Act 1970 section 77E

Exception for certain pre-1974 cases

Section 77E provides an exception from secondary-liability notices for petroleum licence holders where the relevant contract was made before 23 March 1973, subject to certain conditions.

• A secondary-liability notice cannot be served on a licence holder if the profits or chargeable gains arose from a contract the holder made before 23 March 1973.
• This protection does not apply if the assessed person is connected with the licence holder.
• The protection is also lost if the pre-23 March 1973 contract was substantially varied on or after that date.
• Whether persons are connected with each other is determined in accordance with section 1122 of the Corporation Tax Act 2010.