Corporation Tax Act 2010 section 330C

Meaning of "decommissioning expenditure"

Section 330C defines what counts as "decommissioning expenditure" for the purposes of calculating the supplementary charge on ring fence trades carried out by oil and gas companies.

• Decommissioning expenditure covers spending on demolishing, preserving, preparing for reuse, or arranging the reuse of plant or machinery, as well as restoring land (including landscaping).
• Expenditure on preserving plant or machinery qualifies regardless of whether that plant or machinery is ultimately reused, demolished, or a combination of both.
• Expenditure on preparing or arranging for the reuse of plant or machinery qualifies even if the plant or machinery is never actually reused.
• The Treasury has the power to amend this definition by order, and any such order may include transitional provisions and savings.