Amendment of the Corporation Tax Act 2010
4.—(1) Amend section 356 (meaning of “total field allowance for a new oil field”) as follows.
(2) In subsection (1)(c) for “£800,000,000” substitute “the amount determined in accordance with subsection (3)”.
(3) After subsection (2) insert—
“(3) The total field allowance for an ultra high pressure/high temperature oil field is—
(a)£800,000,000, if the temperature of oil in the reservoir formation is more than 176.67 degrees celsius, and
(b)if the temperature of oil in the reservoir formation is more than 166 degrees celsius but not more than 176.67 degrees celsius, the sum of £500,000,000 and an amount calculated as follows—
where X is the number of complete hundredths of a degree celsius by which the temperature of oil in the reservoir formation exceeds 166 degrees celsius.”