Taxes Consolidation Act 1997 section 696

Valuation of petroleum in certain circumstance

Section 696 provides market value rules for the disposal or appropriation of petroleum otherwise than by sale at arm's length.

• A disposal of petroleum other than by arm's length sale is treated as made at market value at the time of disposal.
• Where petroleum is appropriated to refining or non-extraction use without being disposed of, it is treated as sold out of the petroleum trade and bought into a separate trade, both at market value.
• A "relevant appropriation" means appropriation of petroleum to refining or to any use other than the person's own petroleum extraction activities.
• Market value is the price the petroleum could reasonably be expected to fetch on a sale between independent parties dealing at arm's length.