Corporation Tax Act 2010

344 Activation of field allowance U.K.

(1) An amount of the company's field allowance for [F2 the eligible oil field] is to be activated in respect of each reference period.

(2) The amount of the field allowance to be activated is the smallest of the following amounts—

(a) the relevant activation limit,

(b) the company's relevant income from the field in the reference period, and

(c) the unactivated amount of the field allowance which the company holds at the beginning of the reference period.

(3) The relevant activation limit is—

where—

T is the amount of the total field allowance for the field (see [F3 sections 356 and 356A]),

E is the company's share of the equity in the field during the reference period, and

R is the number of days in the reference period.

(4) The company's relevant income from the field in the reference period is—

where—

I is the company's relevant income from the field in the whole of the accounting period,

R is the number of days in the reference period, and

L is the number of days in the accounting period for which the company is a licensee in [F4 the field].

[F5 (5) Subsection (6) applies for the purpose of determining the amount of a company's field allowance for an eligible oil field (“the relevant field allowance”) to be activated in a case where—

(a) the company holds one or more other field allowances for the field, and

(b) at the time when the company began to hold the relevant field allowance, the company already held one or more of those other field allowances (an “earlier field allowance”).

(6) The amount of the company's relevant income from the field in the reference period is to be reduced (but not to below nil) by the amount of any earlier field allowance activated in respect of the reference period.

(7) In a case where the company began to hold two or more field allowances at the same time, the company may determine the order in which the company is to be regarded for the purposes of this section as having begun to hold them.]

Textual Amendments

F2 Words in s. 344(1) substituted (1.4.2013) by Finance Act 2012 (c. 14), Sch. 22 paras. 10(2), 21(2); S.I. 2013/744, art. 2

F3 Words in s. 344(3) substituted (retrospective to 1.4.2013) by The Additionally-developed Oil Fields Order 2013 (S.I. 2013/2910), arts. 1(1), 8

F4 Words in s. 344(4) substituted (1.4.2013) by Finance Act 2012 (c. 14), Sch. 22 paras. 10(3), 21(2); S.I. 2013/744, art. 2

F5 S. 344(5)-(7) inserted (1.4.2013) by Finance Act 2012 (c. 14), Sch. 22 paras. 10(4), 21(2); S.I. 2013/744, art. 2