Part 8Oil activities

F1CHAPTER 8Supplementary charge: onshore allowance

Introduction

356BOverview

This Chapter sets out how relief for certain capital expenditure incurred for the purposes of onshore oil-related activities is given by way of reduction of a company's adjusted ring fence profits, and includes provision about—

(a)

the need for allowance held for a site to be activated by relevant income from the same site in order for the allowance to be available for reducing adjusted ring fence profits,

(b)

elections by a company to transfer allowance between different sites in which it is a licensee (see section 356F), and

(c)

mandatory transfers of allowance where shares in the equity in a licensed area are disposed of (see sections 356H to 356HB and the related provisions in sections 356G to 356GD).