SCHEDULES
SCHEDULE 19CPetroleum extraction activities: ring fence expenditure supplement
Part 3Pre-commencement supplement
Supplement in respect of a pre-commencement accounting period
9
1
If—
a
a qualifying company incurs qualifying pre-commencement expenditure in respect of a ring fence trade, and
b
the expenditure is incurred before the commencement period,
the company may claim supplement under this Part of this Schedule (“pre-commencement supplement”) in respect of one or more pre-commencement periods.
2
Any pre-commencement supplement allowed on a claim in respect of a pre-commencement period is to be treated as expenditure—
a
which is incurred by the company in the commencement period, and
b
which is allowable as a deduction in calculating the profits of the ring fence trade for that period.
3
The amount of the supplement for any pre-commencement period in respect of which a claim under this paragraph is made is the relevant percentage for that period of the reference amount for that period.
4
If the pre-commencement period is a period of less than twelve months, the amount of the supplement for the period (apart from this sub-paragraph) is to be reduced proportionally.
5
Paragraphs 10 to 13 have effect for the purpose of determining the reference amount for a pre-commencement period.