PART 2Oil
Capital allowances
90Expenditure on decommissioning onshore installations
1
Section 163 of CAA 2001 (meaning of “general decommissioning expenditure”) is amended as follows.
2
In subsection (1)—
a
the words after “if” become paragraph (a) of that subsection,
b
in that paragraph, for “subsections (3) to (4)” substitute “
subsections (3), (3A) and (4)
”
, and
c
at the end of that paragraph insert
, or
b
the conditions in subsections (3B) and (4) are met.
3
After subsection (3A) insert—
3B
The expenditure must have been incurred on decommissioning plant or machinery—
a
which has been brought into use wholly or partly for the purposes of a ring fence trade, and
b
which—
i
is, or forms part of, a relevant onshore installation, or
ii
when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation.
3C
In subsection (3B) “relevant onshore installation” means any building or structure which—
a
falls within any of sub-paragraphs (ii) to (iv) of section 3(4)(c) of OTA 1975,
b
is not an offshore installation, and
c
is or has been used for purposes connected with the winning of oil from an oil field any part of which lies within—
i
the boundaries of the territorial sea of the United Kingdom, or
ii
an area designated under section 1(7) of the Continental Shelf Act 1964.
4
In subsection (5)(a), for “ “oil field” has” substitute “ “oil” and “oil field” have”.
5
The amendments made by this section have effect in relation to expenditure incurred on decommissioning carried out on or after the day on which this Act is passed.