SCHEDULES

F2SCHEDULE 19BPetroleum extraction activities: exploration expenditure supplement

Annotations:
Amendments (Textual)

Part 2Application and interpretation

6Qualifying E&A expenditure

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 F1but before 1st January 2006.

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.