Corporation Tax Act 2010 (c. 4)

Part 8 U.K. Oil activities

Chapter 7 U.K. Reduction of supplementary charge for certain new oil fields

Field allowance: when held and unactivated amount U.K.

339 Unactivated amount of field allowance U.K.

(1) This section applies if a company holds a field allowance for a new oil field by virtue of section 337 or 347(2).

(2) The unactivated amount of that allowance at a particular time (“the relevant time”) is—

where—

R is the amount of the field allowance which the company held before the relevant time by virtue of section 337 or 347(2),

E is the total amount of the field allowance received before the relevant time by virtue of section 347(1) (company already holding field allowance acquires equity share),

A is the total amount of the field allowance activated in respect of —

(a)

accounting periods ending before the relevant time, or

(b)

reference periods ending before the relevant time, and

D is the total amount of reductions in the field allowance made before the relevant time by virtue of section 346 (company disposes of equity share).

(3) A company ceases to hold a field allowance for a new oil field if the unactivated amount of that allowance falls to nil.