SCHEDULES

SCHEDULE 19CPetroleum extraction activities: ring fence expenditure supplement

Part 2Application and interpretation

Accounting periods

3

1

In this Schedule, in the case of any qualifying company,—

  • “the commencement period” means the accounting period in which the company sets up and commences its ring fence trade;

  • “post-commencement period” means any accounting period beginning on or after 1st January 2006—

    1. a

      which is the commencement period, or

    2. b

      which ends after the commencement period;

  • “pre-commencement period” means any accounting period—

    1. a

      beginning on or after 1st January 2006, and

    2. b

      ending before the commencement period.

2

For the purposes of this Schedule a company not within the charge to corporation tax which incurs any expenditure is to be treated as having such accounting periods as it would have if—

a

it carried on a trade consisting of the activities in respect of which the expenditure is incurred, and

b

it had started to carry on that trade when it started to carry on the activities in the course of which the expenditure is incurred.

3

In the case of an accounting period (a “straddling period”) of any qualifying company beginning before 1st January 2006 and ending on or after that date—

a

so much of the straddling period as falls before 1st January 2006, and

b

so much of the straddling period as falls on or after that date,

are treated as separate accounting periods for the purposes of this Schedule.

4

But special provision is made elsewhere in this Schedule in relation to straddling periods (see paragraphs 5, 18 and 21(4) to (6)).