SCHEDULE 19BPetroleum extraction activities: exploration expenditure supplement
Part 2Application and interpretation
Qualifying E&A expenditure
6
(1)
For the purposes of this Schedule “qualifying E&A expenditure”is any expenditure as respects which the following conditions are satisfied.
(2)
Condition 1 is that the expenditure is incurred on or after 1st January 2004.
(3)
Condition 2 is that, for the purposes of Part 6 of the Capital Allowances Act, the expenditure is qualifying expenditure incurred on research and development consisting of oil and gas exploration and appraisal (see section 437(2)(b) of that Act).
(4)
Condition 3 is that an allowance under section 441 of that Act is claimed in respect of the expenditure.
(5)
Condition 4 is that the expenditure is incurred in the course of oil extraction activities.
(6)
Condition 5 is that—
(a)
those oil extraction activities are comprised in a ring fence trade, or
(b)
after incurring the expenditure, the person incurring it sets up and commences a ring fence trade connected with the research and development.