Part 8Oil activities

Chapter 7Reduction of supplementary charge for certain new oil fields

Pool of field allowances

335Carrying part of pool of field allowances into following period

(1)

This section applies if —

(a)

a company has a pool of field allowances for an accounting period (“accounting period 1”), and

(b)

the company’s adjusted ring fence profits for accounting period 1 are reduced to nil in accordance with section 333(2).

(2)

A part of the company’s pool of field allowances for accounting period 1 is to be carried into the following accounting period (“accounting period 2”).

(3)

The part to be carried into accounting period 2 is—

F−Pmath

where—

F is the amount of the company’s pool of field allowances for accounting period 1, and

P is the amount of the adjusted ring fence profits for accounting period 1.