Corporation Tax Act 2010 section 279H

Interpretation of section 279G(3) and (4)

Section 279H provides definitions used to determine how augmented profits are calculated for the purposes of the ring fence corporation tax rate thresholds.

• This section defines key terms needed to interpret the rules in section 279G(3) and (4) relating to augmented profits from oil activities.
• The definitions clarify how to measure a company's augmented profits when determining which rate of ring fence corporation tax applies.
• These interpretive provisions support the regime that charges ring fence profits at different rates depending on the level of a company's augmented profits.
• The section was introduced by Finance Act 2014 and subsequently amended by Finance Act 2021 as part of updates to the oil activities taxation framework.