SCHEDULES

SCHEDULE 38Capital allowances for oil decommissioning expenditure

2

(1)

Section 163 (meaning of “general decommissioning expenditure”) is amended as follows.

(2)

In subsection (1), for “(3) and (4)” substitute “ (3) to (4) ”.

(3)

After subsection (3) insert—

“(3A)

The expenditure must have been incurred wholly or substantially in complying with—

(a)

an approved abandonment programme,

(b)

a condition to which the approval of an abandonment programme is subject, or

(c)

a condition imposed by the Secretary of State, or an agreement made with the Secretary of State—

(i)

before the approval of an abandonment programme, and

(ii)

in relation to the decommissioning of the plant or machinery.”

(4)

In subsection (5)(b), insert at the beginning “ “abandonment programme”, “approval” and “approved” (in relation to an abandonment programme),”.