PART 2

Oil

Capital allowances

Expenditure on decommissioning certain redundant plant or machinery
91
1
In section 164 of CAA 2001 (general decommissioning expenditure incurred before cessation of ring fence trade), after subsection (1B) insert—
1C
If the plant or machinery concerned is incidentally-acquired redundant plant or machinery (see subsection (1D)), it is to be regarded for the purposes of this section as having been brought into use for the purposes of the ring fence trade.
1D
Plant or machinery is “incidentally-acquired redundant plant or machinery” if—
a
it has not been brought into use for the purposes of the ring fence trade,
b
it forms part of a relevant installation (see subsection (1E)) which has been brought into use for the purposes of the ring fence trade,
c
at the time R acquired an interest in the relevant installation, the plant or machinery was not being used for any purposes, and
d
the acquisition of the interest in the plant or machinery was merely incidental to the acquisition of the interest in the relevant installation.
1E
For the purposes of subsection (1D)—
- “relevant installation” means—
  1. an offshore installation,
  2. a submarine pipeline, or
  3. a relevant onshore installation;
- “offshore installation” and “submarine pipeline” have the same meaning as in Part 4 of the Petroleum Act 1998;
- “relevant onshore installation” has the meaning given by section 163(3C).
2
The amendment made by this section has effect in relation to expenditure incurred on decommissioning carried out on or after the day on which this Act is passed.