SCHEDULES

SCHEDULE 20 CAPITAL ALLOWANCES: OFFSHORE OIL INFRASTRUCTURE

Part 1 CHARGEABLE PERIODS ENDING BEFORE 1ST OR 6TH APRIL 2001

4Commencement of Part 1

1

The amendments made by this Part of this Schedule apply to expenditure that is incurred—

a

on or after 7th August 2000, and

b

in a relevant chargeable period.

2

The amendments made by paragraph 1 also apply to expenditure incurred before 7th August 2000 if the expenditure—

a

is incurred in a relevant chargeable period, and

b

is within sub-paragraph (3) or (4).

3

Expenditure is within this sub-paragraph if—

a

it is decommissioning expenditure on UK infrastructure, and

b

it is incurred in connection with an abandonment programme approved on or after 7th August 2000.

4

Expenditure is within this sub-paragraph if—

a

it is decommissioning expenditure,

b

it is not decommissioning expenditure on UK infrastructure, and

c

it is incurred in connection with a decommissioning activity that takes place on or after 7th August 2000.

5

The amendments made by paragraphs 2 and 3 also apply to expenditure incurred before 7th August 2000 if the expenditure—

a

is incurred in a relevant chargeable period, and

b

is incurred in connection with an abandonment programme approved on or after 7th August 2000.

6

In sub-paragraphs (3) and (4), “decommissioning expenditure” and “decommissioning expenditure on UK infrastructure” have the same meaning as in the section 62AA inserted by paragraph 1.

7

In sub-paragraph (4)(c) “decommissioning activity” means an activity mentioned in any of paragraphs (a) to (d) of the section 62AB(1) inserted by paragraph 1.

8

In this paragraph “relevant chargeable period” means—

a

for income tax purposes, a chargeable period ending before 6th April 2001, and

b

for corporation tax purposes, a chargeable period ending before 1st April 2001.