Capital Allowances Act 2001 section 161B

Meaning of "decommissioning expenditure"

Section 161B defines what counts as "decommissioning expenditure" for the purposes of the rules on reuse of offshore oil infrastructure.

• Decommissioning expenditure covers costs of preserving plant or machinery while awaiting reuse or demolition
• It also includes expenditure on preparing plant or machinery for reuse, or arranging for its reuse
• It does not matter whether the plant or machinery is actually reused, demolished, or partly reused and partly demolished
• The definition applies specifically for the purposes of sections 161C and 161D, which deal with writing-down allowances and exceptions for offshore oil infrastructure expenditure