[F1332IBAcquisition of allowance if equity acquiredU.K.
(1)If the unactivated allowance condition is met, a transferee is treated as generating in the qualifying oil field concerned, at the beginning of the reference period or accounting period of the transferee that begins with the day on which the disposal is made, investment allowance of the amount given by subsection (2).
(2)The amount is—
where—
R is the amount determined for the purposes of the deduction under section 332IA(1);
E3 is the share of the equity in the qualifying oil field that the transferee has acquired from the transferor;
E1 and E2 are the same as in section 332IA(1).
(3)Subsection (4) applies if the section 332DA expenditure condition is met.
(4)A transferee is treated for the purposes of section 332DA(3) as having incurred in respect of the qualifying oil field, at the beginning of the reference period or accounting period of the transferee that begins with the day on which the disposal is made, expenditure of the following amount—
where—
R is the amount determined for the purposes of the deduction under section 332IA(3);
E1, E2 and E3 have the same meaning as in subsection (2).
(5)Subsection (6) applies if the section 332DB expenditure condition is met.
(6)A transferee is treated for the purposes of section 332DB(3) as having incurred in respect of the project, at the beginning of the reference period or accounting period of the transferee that begins with the day on which the disposal is made, expenditure of the following amount—
where—
R is the amount determined for the purposes of the deduction under section 332IA(5);
E3 is the share of the project-related reserves that the transferee has acquired from the transferor;
E1 and E2 have the same meaning as in section 332IA(5).
(7)In subsection (6) “project-related reserves” means the additional reserves of oil that the oil field has as a result of the project.]
Textual Amendments
F1Pt. 8 Ch. 6A inserted (with effect in accordance with Sch. 12 para. 5 7 8 of the amending Act) by Finance Act 2015 (c. 11), Sch. 12 para. 2