Corporation Tax Act 2010

Pool of field allowances

334 Company’s pool of field allowances

A company’s pool of field allowances for an accounting period (“the relevant accounting period”) is—

P + R

where—

• P is the amount of the company’s pool of field allowances for the previous accounting period that has been carried into the relevant accounting period (see sections 335 and 336), and

• R is the aggregate of the amounts of field allowances for new oil fields which the company holds (see sections 337 to 339) that are activated in respect of—

  (a)

  the relevant accounting period (see sections 340 and 341), and

  (b)

  reference periods that fall within the relevant accounting period (see sections 342 to 344).

335 Carrying part of pool of field allowances into following period

(1) This section applies if —

(a) a company has a pool of field allowances for an accounting period (“accounting period 1”), and

(b) the company’s adjusted ring fence profits for accounting period 1 are reduced to nil in accordance with section 333(2).

(2) A part of the company’s pool of field allowances for accounting period 1 is to be carried into the following accounting period (“accounting period 2”).

(3) The part to be carried into accounting period 2 is—

F − P

where—

• F is the amount of the company’s pool of field allowances for accounting period 1, and

• P is the amount of the adjusted ring fence profits for accounting period 1.

336 Carrying whole of pool of field allowances into following period

(1) This section applies if a company—

(a) has a pool of field allowances for an accounting period, but

(b) has no adjusted ring fence profits for the accounting period.

(2) The whole of the company’s pool of field allowances for the accounting period is to be carried into the following accounting period.