Corporation Tax Act 2010 section 332CA

Expenditure incurred before field is determined

Section 332CA deals with how expenditure on oil-related activities incurred before an area is formally determined to be an oil field is treated for the purposes of the investment allowance.

• The section applies to expenditure incurred on or after 1 April 2015 on oil-related activities in respect of a particular area
• At the time the expenditure was incurred, the area must not yet have been formally determined to be an oil field
• The area must subsequently be determined to be an oil field, and the company must be a licensee in that field
• When these conditions are met, the expenditure is treated as having been incurred in relation to the oil field at the point in time when the field determination is made