Part 8Oil activities

F1CHAPTER 6ASupplementary charge: investment allowance

Activated and unactivated allowance: basic calculation rules

332FAThe closing balance of unactivated allowance for an accounting period

The closing balance of unactivated allowance held by a company for an accounting period and a qualifying oil field is—

P + Q

where—

  • P is the amount of investment allowance generated by the company in the qualifying oil field in the accounting period (including any amount treated under section 332IB(1) as generated by the company in that field in that accounting period);

  • Q is any amount carried forward from an immediately preceding accounting period under section 332FC(1) or from an immediately preceding reference period under section 332HB(1).