Taxes Management Act 1970 section 77H

Calculations under sections 77C(3) and 77G(7)

Section 77H sets out the method for calculating certain amounts of profits or chargeable gains that arise under the secondary liability and post-exemption certificate cancellation provisions relating to holders of petroleum licences.

• The calculation method applies to three specific amounts: L under section 77C(3), CIF under section 77G(7), and CIF + NIF under section 77G(7) where condition E in section 77G is met
• Each amount must be calculated as though a separate, standalone assessment were being made on the assessed person in respect of just those profits or chargeable gains
• An officer of Revenue and Customs must allocate and apportion receipts, expenses, allowances, and deductions from the actual assessment on a just and reasonable basis
• The officer has discretion to determine what constitutes a just and reasonable apportionment in the circumstances of each case