Part 8

Oil activities
Chapter 5

Ring fence expenditure supplement

Post-commencement supplement

The ring fence pool
326
1
The ring fence pool consists of—
a
the carried forward qualifying Schedule 19B amount (if any),
b
the company's ring fence losses, allocated to the pool in accordance with subsection (2)(a), and
c
the company's post-commencement supplement, allocated to the pool in accordance with subsection (2)(b).
2
The allocation of ring fence losses and post-commencement supplement to the pool is made as follows—
a
the amount of a ring fence loss is added to the pool in the period of the loss, and
b
if any post-commencement supplement is allowed on a claim in respect of a post-commencement period, the amount of that supplement is added to the pool in that period.
3
The amount in the ring fence pool is subject to reductions in accordance with sections 327 and 328.
4
If a reduction in the amount in the ring fence pool falls to be made under section 327 or 328 in any accounting period, the reduction is to be made—
a
after the addition to the pool of the amount of any ring fence losses allocated to the pool in that period in accordance with subsection (2)(a), but
b
before determining, and adding to the pool, the amount of any supplement claimed in respect of the period,
and references to the amount in the pool are to be read accordingly.
5
In this section “the carried forward qualifying Schedule 19B amount”, in relation to a qualifying company, means the amount in its qualifying pool for the purposes of Part 4 of Schedule 19B to ICTA immediately before 1 January 2006.
6
This section is subject to section 328A (adjustment of pool to remove pre-2013 losses after the initial 6 periods).
Words in s. 326(3) substituted (with effect in accordance with Sch. 11 para. 14 of the amending Act) by Finance Act 2015 (c. 11), Sch. 11 para. 8(2)
Words in s. 326(4) inserted (with effect in accordance with Sch. 11 para. 14 of the amending Act) by Finance Act 2015 (c. 11), Sch. 11 para. 8(3)
S. 326(6) inserted (with effect in accordance with Sch. 11 para. 14 of the amending Act) by Finance Act 2015 (c. 11), Sch. 11 para. 8(4)