5(1)CTA 2010 is amended as follows.U.K.
(2)In section 270 (overview of Part)—
(a)after subsection (7) insert—
“(7A)Chapter 8 makes provision about the reduction of supplementary charge by an allowance for capital expenditure incurred for the purposes of onshore oil-related activities.”;
(b)in subsection (8)(c), for “357” substitute “ 356AA ”.
(3)In section 333 (reduction of adjusted ring fence profits)—
(a)in subsection (1), after “reduced” insert “ (but not below zero) ”;
(b)omit subsection (2).
(4)In section 356AA (as renumbered by paragraph 2)(definitions for Chapter 7), in the definition of “adjusted ring fence profits”, at the end insert “ ; but see also section 356DB (companies with allowances under Chapter 8 as well as this Chapter) ”.
(5)In Schedule 4 (index of defined expressions)—
(a)at the appropriate places insert—
| “adjusted ring fence profits (in Chapter 8 of Part 8) | section 356JB”; |
| “cumulative total amount of activated allowance (in Chapter 8 of Part 8) | section 356JB”; |
| “onshore allowance (in Chapter 8 of Part 8) | section 356JB”; |
| “onshore oil-related activities (in Chapter 8 of Part 8) | section 356BA”; |
| “relevant income (in Chapter 8 of Part 8) | section 356E(3)”; |
| “site (in Chapter 8 of Part 8) | section 356BC”; |
(b)in the entries for “adjusted ring fence profits”, “authorisation day”, “eligible oil field”, “licensee” and “relevant income” (in each case, as those expressions are defined for Chapter 7 of Part 8 of CTA 2010), for “357” substitute “ 356AA ”.