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—

(R+E)-(A+D)math

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 —

  1. a

    accounting periods ending before the relevant time, or

  2. 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.