SCHEDULES
SCHEDULE 19CPetroleum extraction activities: ring fence expenditure supplement
Part 1Introductory
About this Schedule
1
1
This Schedule entitles a company carrying on a ring fence trade, on making a claim in respect of an accounting period beginning on or after 1st January 2006, to a supplement (initially of 6%, but variable by Treasury order) in respect of—
a
qualifying pre-commencement expenditure incurred before the trade is set up and commenced,
b
losses incurred in the trade, and
c
some or all of the supplement allowed in respect of earlier periods.
2
Part 2 makes provision about the application and interpretation of this Schedule.
3
Part 3 makes provision about supplement in relation to expenditure incurred by the company—
a
with a view to carrying on a ring fence trade, but
b
in an accounting period before the company sets up and commences that trade.
4
Part 4 makes provision about supplement in relation to losses incurred in carrying on the ring fence trade.
5
There is a limit on the number of accounting periods (6) in respect of which a company may claim supplement.
6
In determining the amount of supplement allowable, reductions fall to be made in respect of—
a
disposal receipts in respect of any asset representing qualifying pre-commencement expenditure,
b
ring fence losses that could be set off under section 393A against ring fence profits of earlier periods,
c
ring fence losses incurred in earlier periods that fall to be set off under section 393 against profits of succeeding periods,
d
unrelieved group ring fence profits.