Corporation Tax Act 2010 section 332A

Overview

Section 332A provides an overview of the investment allowance regime under Chapter 6A, which gives tax relief for certain expenditure on qualifying oil fields by reducing a company's adjusted ring fence profits.

• Relief is given by reducing a company's adjusted ring fence profits for expenditure incurred on qualifying oil fields
• Investment allowance is generated when a company incurs qualifying investment expenditure on a qualifying oil field, subject to certain restrictions
• Generated allowance must be activated by relevant income from the same oil field before it can reduce adjusted ring fence profits, with rules covering reference periods and equity changes
• Allowance can be transferred when equity shares in a qualifying oil field are disposed of, and pre-existing field allowances from before 1 April 2015 can be converted into investment allowance under transitional rules