SCHEDULES
F1SCHEDULE 19BPetroleum extraction activities: exploration expenditure supplement
Part 3Pre-commencement supplement
10The mixed pool of qualifying E&A expenditure and supplement previously allowed
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.
Sch. 19B inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 286(3), Sch. 38