347Acquisition of field allowance if equity acquiredU.K.
(1)If a transferee holds a field allowance for the new oil field immediately before the disposal, the unactivated amount of the field allowance is to be increased by the amount calculated in accordance with subsection (4).
(2)If a transferee does not hold a field allowance for the new oil field immediately before the disposal, the transferee is to hold a field allowance for the new oil field.
(3)The amount of the field allowance which the transferee is to hold is calculated in accordance with subsection (4).
(4)The amount referred to in subsections (1) and (3) is—
where—
R is the amount of the reduction determined in accordance with section 346,
E3 is the share of the equity in the new oil field that the transferee has acquired from the transferor, and
E1 and E2 are the same as in section 346.
(5)This section has effect at the end of the day on which the disposal takes place.