F1SCHEDULE 19BPetroleum extraction activities: exploration expenditure supplement
Part 3Pre-commencement supplement
The mixed pool of qualifying E&A expenditure and supplement previously allowed
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(1)
For the purpose of determining the amount of any pre-commencement supplement, a qualifying company shall be taken to have had, at all times in the pre-commencement periods of the company, a continuing mixed pool of qualifying E&A expenditure and pre-commencement supplement.
(2)
The pool shall be taken to have consisted of—
(a)
the company’s qualifying E&A expenditure, allocated to the pool for each pre-commencement period in accordance with sub-paragraph (3), and
(b)
the company’s pre-commencement supplement, allocated to the pool for each pre-commencement period in accordance with sub-paragraph (4).
(3)
To allocate qualifying E&A expenditure to the pool for any pre-commencement period, take the following steps—
(a)
Step 1: count as eligible expenditure for that period so much of the qualifying E&A expenditure mentioned in paragraph 9(1)(b) as was incurred in that period,
(b)
Step 2: find the total of all the eligible expenditure for that period (amount E),
(c)
Step 3: if paragraph 11 applies, reduce amount E in accordance with that paragraph,
(d)
Step 4: if paragraph 12 applies, reduce (or, as the case may be, further reduce) amount E in accordance with that paragraph,
and so much of amount E as remains after making those reductions shall be taken to have been added to the pool in that period.
(4)
If any pre-commencement supplement is allowed on a claim in respect of a pre-commencement period, the amount of that supplement shall be taken to have been added to the pool in that period.