Capital Allowances Act 2001 Schedule 3 paragraph 28

Oil production sharing contracts

Schedule 3 paragraph 28 provides a transitional rule that excludes expenditure incurred before 21 March 2000 from the oil production sharing contract provisions in sections 167 to 171.

• Sections 167 to 171 contain special rules for plant and machinery used under oil production sharing contracts
• These rules do not apply where the relevant expenditure was incurred before 21 March 2000
• The exclusion also applies where plant or machinery was brought into qualifying use before that date, even if the expenditure is only treated as incurred at that point under section 13
• This transitional provision effectively grandfathers pre-existing expenditure so that only spending from 21 March 2000 onwards falls within the oil production sharing contract regime