Capital Allowances Act 2001 section 161C

Expenditure related to reuse etc qualifies for writing-down allowances

Section 161C provides that decommissioning expenditure on offshore infrastructure used in an oil extraction trade qualifies for writing-down allowances by being added to the relevant capital allowances pool.

• Applies where a person carrying on an oil extraction trade incurs decommissioning expenditure on plant or machinery that is, or was when last in use, offshore infrastructure
• The plant or machinery must have been brought into use for the purposes of the oil extraction trade
• The decommissioning expenditure is allocated to the appropriate capital allowances pool in the chargeable period in which it is incurred
• The appropriate pool is the same pool to which the original expenditure on the plant or machinery has been, or would be, allocated under the plant and machinery allowances rules