SCHEDULES

F1SCHEDULE 19BPetroleum extraction activities: exploration expenditure supplement

Annotations:
Amendments (Textual)

Part 3Pre-commencement supplement

11Treatment of disposal value on disposal of oil licence with exploitation value

1

This paragraph applies in any case where—

a

the qualifying company disposes of an interest in an oil licence in a pre-commencement period,

b

part of the value of the interest (the “deductible amount”) is attributable to qualifying E&A expenditure incurred by the company, and

c

section 555 of the Capital Allowances Act (disposal of oil licence with exploitation value) has effect in relation to the disposal.

2

For the purpose of allocating qualifying E&A expenditure to the pool for each pre-commencement period—

a

find the total of the deductible amounts in the case of all such disposals made by the company (amount D), and

b

taking later periods before earlier periods, reduce (but not below nil) amount E for any pre-commencement period by setting against it so much of amount D as does not fall to be set against amount E for a later pre-commencement period.

3

In this paragraph “oil licence” has the same meaning as in section 555 of the Capital Allowances Act (see section 552 (1) of that Act).