begins on or after 26 May 2022, and

ends on or before F331 March 2028,

the company has incurred such additional expenditure (if any) in that period as is provided for by section 2(3),

that additional expenditure is allowable as a deduction in calculating the amount of the profits or loss of any ring fence trade of the company for the period,

financing costs and decommissioning costs are left out of account in calculating the amount of the profits or loss of any ring fence trade of the company for the period (see also sections 8 and 9),

any amount that would otherwise be brought into account under section 301 of CTA 2010 (effect of repayment of petroleum revenue tax) in calculating the amount of the profits or loss of any ring fence trade of the company for the period is left out of account so far as the amount is referable to the decommissioning part of an allowable loss, and

no account is to be taken of any provision of Part 4, 5 or 5A of CTA 2010 (loss relief, group relief and group relief for carried forward losses) or of sections 303A to 303D of that Act (use of non-decommissioning losses of ring fence trades).

Part 1 of Schedule 1 (carry back or forward of qualifying levy losses), or

Part 2 of that Schedule (group relief for qualifying levy losses).

it is capital expenditure, operating expenditure or leasing expenditure,

it is incurred for the purposes of oil-related activities,

it is not incurred for disqualifying purposes, and

it does not consist of financing costs or decommissioning costs.

it is not routine repair or maintenance expenditure, and

it is incurred in relation to a facility or an oil well on qualifying matters.

the replacement of a valve, pump, pipeline, power generation plant or compressor that is no longer capable of being used for the purposes of oil extraction activities,

modifications to increase capacity, or availability, to carry out oil extraction activities, or

modifications to enable handling of reduced volumes resulting from reduced operating pressures or handling of different fluid compositions.

water shut off or gas shut off,

fracturing, or

the removal of sand, salt, scale or hydrates.

it represents payment in return for a mobile production or storage asset being made available under a lease whose term is at least 5 years, and

on the date on which the expenditure is incurred, no company has obtained relevant tax relief in respect of the acquisition of the asset.

amounts received from the lessee where the parties to the lease are associated companies, or

amounts previously set against expenditure under this subsection which would otherwise have counted as leasing expenditure.

to which the company or associated company is party as lessee, and

in respect of which expenditure is incurred which is, or but for subsection (2) would have counted as, leasing expenditure.

any charge for the provision of any staff or for any services,

any amount payable which is, or represents, a profit or premium on the cost of the asset being made available which is paid by the company to an associated company,

any amount which, in accordance with generally accepted accounting practice, falls (or would fall) to be shown in the company’s accounts as a finance charge in respect of a lease, or

any amount that can be attributed to finance costs by reference to the interest rate implicit in the lease (which is to be taken to be the interest rate that would apply to the lease in accordance with normal commercial criteria, including, in particular, generally accepted accounting practice (if applicable)).

the main purpose, or one of the main purposes, of the arrangements is to secure a relevant levy advantage, and

relief or increased relief from the levy,

repayment or increased repayment of the levy,

avoidance or reduction of a charge to the levy or an assessment to the levy,

avoidance of a possible assessment to the levy,

deferral of a payment of the levy or advancement of a repayment of the levy, and

avoidance of an obligation to deduct or account for the levy.

expenditure was incurred previously by the company or another company in acquiring, leasing, bringing into existence or enhancing the value of the asset, and

any of that expenditure has been taken into account, or would on the applicable assumption have been taken into account, for the purposes of the levy.

any case where the asset acquired is an interest in an oil field, and

any case where the asset is acquired in connection with a transfer to the company of an interest in an oil field (whether or not the asset is acquired at the time of the transfer).

any reference to expenditure incurred by a company in leasing an asset is to expenditure incurred by it under an agreement under which the asset was leased to the company,

any reference to the applicable assumption in the case of any expenditure incurred at any time is to the assumption that this Act were fully in force and applied to expenditure incurred at that time, and

any reference to an interest in an oil field is to the whole or part of the equity in an oil field.

in the case of capital expenditure, section 5 of CAA 2001 (when capital expenditure is incurred) applies as it applies for the purposes of that Act, and

in the case of operating expenditure or leasing expenditure, the expenditure is treated as incurred on the date on which it is paid.

any costs giving rise to debits in respect of debtor relationships of the company under Part 5 of CTA 2009 (loan relationships), other than debits in respect of exchange losses from such relationships,

any exchange gain or loss from a debtor relationship of the company in relation to debt finance,

any credit or debit falling to be brought into account in accordance with Part 7 of CTA 2009 (derivative contracts) in relation to debt finance,

the financing cost implicit in a payment under a finance lease,

if the company is the lessee under a right-of-use lease which is a long funding finance lease, any costs falling, in accordance with generally accepted accounting practice, to be treated in the accounts of the company as interest expenses,

if the company is the lessee under a long funding operating lease, the amount deductible in respect of payments under the lease in calculating the profits of the lessee for corporation tax purposes (after first making against any such amount any reductions falling to be made as a result of section 379 of CTA 2010 (lessee under long funding operating lease)), and

any other costs arising from what would be considered in accordance with generally accepted accounting practice to be a financing transaction.

falls (or would fall) to be treated as a finance charge, or an interest expense, under a finance lease for the purposes of accounts which relate to that company and one or more other companies and are prepared in accordance with generally accepted accounting practice, but

is not so treated in the accounts of the company,

in calculating the qualifying levy profits or loss of a company for an accounting period, an amount falls to be left out of account as a result of subsection (3)(d), but

the whole or any part of that amount is repaid,

is decommissioning expenditure or site restoration expenditure, and

qualifies for a capital allowance.

demolishing plant or machinery,

preserving plant or machinery pending its reuse or demolition,

preparing plant or machinery for reuse, or

arranging for the reuse of plant or machinery,

the site of a source to the working of which the ring fence trade concerned relates (or related), or

land used in connection with working such a source.

the provisions of the Corporation Tax Acts,

any necessary modifications, and

subsection (5).

those relating to returns of information and the supply of accounts, statements and reports,

those relating to the assessing, collecting and receiving of corporation tax,

those conferring or regulating a right of appeal, and

those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.

TMA 1970 is to have effect as if any reference to corporation tax included a sum chargeable on a company under section 1(1) as if it were an amount of corporation tax, and

the enactments referred to in subsection (3)(a) to (d) apply for the purposes of the levy subject to any modifications necessary to take account of the provision made by Schedule 1 or by any other provision of this Act,

references to corporation tax do not include a sum chargeable on a company under section 1(1) as if it were corporation tax, and

references to profits charged to corporation tax do not include qualifying levy profits.

the levy is chargeable on a company (“the chargeable company”) for a qualifying accounting period, and

a payment is made (whether or not by the company) that is wholly or partly in respect of the levy.

in a case where the chargeable company is party to relevant group payment arrangements, the company that is, under those arrangements, to discharge the liability of the chargeable company to pay the levy for the accounting period, and

in any other case, the chargeable company.

this Act is to apply as if so much of the straddling period as falls before that date, and so much of the straddling period as falls on or after that date, were separate accounting periods, and

the company’s levy profits or loss determined for the straddling period (on the assumption that the whole of that period were a qualifying accounting period) are apportioned to the two separate accounting periods in accordance with section 17.

in relation to the levy, and

in relation to any other tax chargeable on the company.

the deemed accounting period treated under subsection (1)(a) as beginning on 26 May 2022 were an accounting period for the purposes of those Regulations, and

the levy were chargeable for that period.

in their application as a result of subsection (2)(a), as a reference to the levy, and

in their application as a result of subsection (2)(b), as a reference to the amount that would be the company’s total liability for the straddling period if the levy were left out of account.

a company is to be regarded as a large company as respects the deemed accounting period under subsection (1)(a) only if it is a large company for those purposes as respects the straddling period, and

any question whether a company is a large company as respects the straddling period is to be determined as it would have been determined apart from section 1.

this Act is to apply as if so much of the straddling period as falls on or before that date, and so much of the straddling period as falls after that date, were separate accounting periods, and

the company’s levy profits or loss determined for the straddling period (on the assumption that the whole of that period were a qualifying accounting period) are apportioned to the two separate accounting periods in accordance with section 17.

in relation to the levy, and

in relation to any other tax chargeable on the company.

the deemed accounting period treated under subsection (1)(a) as ending on F531 March 2028 were an accounting period for the purposes of those Regulations, and

the levy were chargeable for that period.

in their application as a result of subsection (2)(a), as a reference to the levy, and

in their application as a result of subsection (2)(b), as a reference to the amount that would be the company’s total liability for the straddling period if the levy were left out of account.

a company is to be regarded as a large company as respects the deemed accounting period under subsection (1)(a) only if it is a large company for those purposes as respects the straddling period, and

any question whether a company is a large company as respects the straddling period is to be determined as it would have been determined apart from section 1.