Part 8Oil activities
Chapter 7Reduction of supplementary charge for certain new oil fields
Field allowance: when held and unactivated amount
339Unactivated amount of field allowance
1
This section applies if a company holds a field allowance for a new oil field by virtue of section 337 or 347(2).
2
The unactivated amount of that allowance at a particular time (“the relevant time”) is—
where—
R is the amount of the field allowance which the company held before the relevant time by virtue of section 337 or 347(2),
E is the total amount of the field allowance received before the relevant time by virtue of section 347(1) (company already holding field allowance acquires equity share),
A is the total amount of the field allowance activated in respect of —
- a
accounting periods ending before the relevant time, or
- b
reference periods ending before the relevant time, and
D is the total amount of reductions in the field allowance made before the relevant time by virtue of section 346 (company disposes of equity share).
3
A company ceases to hold a field allowance for a new oil field if the unactivated amount of that allowance falls to nil.