Search Legislation

Finance Act 2009

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: SCHEDULE 38

 Help about opening options

Alternative versions:

Changes to legislation:

Finance Act 2009, SCHEDULE 38 is up to date with all changes known to be in force on or before 28 March 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

Section 84

SCHEDULE 38U.K.Capital allowances for oil decommissioning expenditure

This schedule has no associated Explanatory Notes

1U.K.CAA 2001 is amended as follows.

2(1)Section 163 (meaning of “general decommissioning expenditure”) is amended as follows.U.K.

(2)In subsection (1), for “(3) and (4)” substitute “ (3) to (4) ”.

(3)After subsection (3) insert—

(3A)The expenditure must have been incurred wholly or substantially in complying with—

(a)an approved abandonment programme,

(b)a condition to which the approval of an abandonment programme is subject, or

(c)a condition imposed by the Secretary of State, or an agreement made with the Secretary of State—

(i)before the approval of an abandonment programme, and

(ii)in relation to the decommissioning of the plant or machinery.

(4)In subsection (5)(b), insert at the beginning “ “abandonment programme”, “approval” and “approved” (in relation to an abandonment programme),”.

3(1)Section 164 (general decommissioning expenditure incurred before cessation of ring fence trade) is amended as follows.U.K.

(2)For subsection (1) substitute—

(1)A person (“R”) carrying on a ring fence trade may elect to have a special allowance made to R for a chargeable period (the “relevant chargeable period”) if conditions A and B are met.

(1A)Condition A is that one or more of these paragraphs applies—

(a)R incurs general decommissioning expenditure in the relevant chargeable period in respect of decommissioning carried out in that period;

(b)R incurs general decommissioning expenditure in the relevant chargeable period in respect of decommissioning carried out in a previous chargeable period;

(c)R incurred general decommissioning expenditure in a previous chargeable period in respect of decommissioning that has not been carried out until the relevant chargeable period.

(1B)Condition B is that the plant or machinery concerned has been brought into use for the purposes of the ring fence trade.

(3)In subsection (2)(a), for the words from “the chargeable period” to the end substitute “ the relevant chargeable period, and ”.

(4)In subsection (3)—

(a)in paragraph (a), omit the “and” at the end, and

(b)after that paragraph insert—

(aa)the chargeable period in which the expenditure was incurred,

(ab)the decommissioning to which the expenditure relates,

(ac)the chargeable period in which the decommissioning was carried out, and.

(5)In subsection (4)(a), for the words from “the chargeable period” to the end substitute “ the relevant chargeable period, and ”.

(6)In subsection (5), for the words from “a chargeable period” to the end substitute “ the relevant chargeable period is equal to the amount of the general decommissioning expenditure to which the election relates. ”

(7)After that subsection insert—

(5A)But subsection (5) is subject to subsections (5B) and (6).

(5B)If an amount of general decommissioning expenditure to which the election relates is disproportionate to the relevant decommissioning carried out in the specified decommissioning period then, for the purposes of this section, the election is to be taken to specify only the allowable expenditure.

(5C)The application of subsection (5B) to an amount of general decommissioning expenditure does not prevent a person from making an election under this section for a subsequent chargeable period specifying the non-allowable expenditure.

(5D)In subsections (5B) and (5C)—

  • allowable expenditure”, in relation to general decommissioning expenditure, means the amount of the expenditure that is proportionate to the relevant decommissioning carried out in the specified decommissioning period;

  • non-allowable expenditure”, in relation to general decommissioning expenditure, means so much of that expenditure as is not allowable expenditure;

  • relevant decommissioning”, in relation to general decommissioning expenditure, means the decommissioning to which the expenditure relates;

  • specified decommissioning period”, in relation to relevant decommissioning, means the chargeable period specified in the election as the period in which the decommissioning was carried out;

  • specified expenditure period”, in relation to general decommissioning expenditure, means the chargeable period specified in the election as the period in which the expenditure was incurred.

4(1)Section 165 (general decommissioning expenditure after ceasing ring fence trade) is amended as follows.U.K.

(2)In subsection (1), for paragraph (b) substitute—

(b)the decommissioning condition is met in relation to a notional accounting period, and.

(3)After that subsection insert—

(1A)The decommissioning condition is met in relation to a notional accounting period (the “relevant period”) if one or more of these paragraphs applies—

(a)the former trader incurs general decommissioning expenditure in the relevant period in respect of decommissioning carried out in that period,

(b)the former trader incurs general decommissioning expenditure in the relevant period in respect of decommissioning carried out in—

(i)a previous notional accounting period, or

(ii)a chargeable period falling before the first notional accounting period, and

(c)the former trader incurred general decommissioning expenditure in—

(i)a previous notional accounting period, or

(ii)a chargeable period falling before the first notional accounting period,

in respect of decommissioning that has not been carried out until the relevant period.

(1B)Notional accounting period” means each of the following periods—

(a)the period that—

(i)begins with the day following the last day on which the former trader carried on the ring fence trade, and

(ii)ends with the day on which the first termination event subsequently occurs, and

(b)each period that—

(i)begins with the day following the last day of a period determined under paragraph (a) or this paragraph, and

(ii)ends with the day on which the first termination event subsequently occurs;

but there are to be no notional accounting periods after the end of the post-cessation period.

(1C)Termination event”, in relation to a notional accounting period, means each of the following—

(a)the end of the period of 12 months beginning with the first day of the notional accounting period,

(b)the occurrence of an accounting date of the former trader or, if there is a period for which the former trader does not make up accounts, the end of that period (but see subsections (6A) and (6B)), and

(c)the end of the post-cessation period.

(4)In subsection (3)—

(a)after “applies” insert “ in relation to a notional accounting period ”, and

(b)in paragraph (a), after “relevant decommissioning cost” insert “ for that period, or the aggregate of all the relevant decommissioning costs for that period, ”.

(5)In subsection (4), for the definition of “the relevant decommissioning cost” substitute—

“relevant decommissioning cost”, for a notional accounting period, means the amount by which general decommissioning expenditure falling within paragraph (a), (b) or (c) of subsection (1A) in relation to that period exceeds any amounts received before or during that period for the remains of any plant or machinery on whose demolition any of the general decommissioning expenditure was incurred.

(6)After subsection (4A) insert—

(4B)If an amount of general decommissioning expenditure is disproportionate to the relevant decommissioning carried out in the decommissioning period then, for the purposes of this section, only the allowable expenditure is to be taken to have been incurred in the expenditure period.

(4C)The application of subsection (4B) to an amount of general decommissioning expenditure does not prevent the non-allowable expenditure from being taken into account under this section in relation to a subsequent notional accounting period.

(4D)In subsections (4B) and (4C)—

  • allowable expenditure”, in relation to general decommissioning expenditure, means the amount of the expenditure that is proportionate to the relevant decommissioning carried out in the decommissioning period;

  • decommissioning period”, in relation to relevant decommissioning, means the notional accounting period or chargeable period in which the decommissioning was carried out;

  • expenditure period”, in relation to general decommissioning expenditure, means the notional accounting period or chargeable period in which the expenditure was incurred;

  • non-allowable expenditure”, in relation to general decommissioning expenditure, means so much of that expenditure as is not allowable expenditure;

  • relevant decommissioning”, in relation to general decommissioning expenditure, means the decommissioning to which the expenditure relates.

(7)After subsection (6) insert—

(6A)If the former trader—

(a)carries on more than one trade,

(b)makes up accounts of any of them to different dates, and

(c)does not make up general accounts for the whole of the company's activities,

subsection (1C)(b) applies with reference to the accounting date of such one of the trades as the former trader may determine.

(6B)If the Commissioners for Her Majesty's Revenue and Customs are of the opinion, on reasonable grounds, that a date determined by the former trader for the purposes of subsection (6A) is inappropriate, the Commissioners may by notice direct that the accounting date of such other of the trades referred to in that subsection as appears to the Commissioners to be appropriate is to be used instead.

5U.K.The amendments made by this Schedule have effect in relation to expenditure incurred on or after 22 April 2009.

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources