Corporation Tax Act 2010 section 332HA

Unactivated amounts attributable to a reference period

Section 332HA sets out how to calculate the total unactivated investment allowance attributable to a reference period and a qualifying oil field.

• The total unactivated allowance for a reference period and qualifying oil field is calculated as P + Q, where P is the allowance generated in that period (including any allowance treated as generated following an acquisition of equity) and Q is brought-forward unactivated allowance.
• If the reference period is not immediately preceded by another reference period but is preceded by an accounting period, Q equals any unactivated allowance carried forward from that accounting period.
• If the reference period is immediately preceded by another reference period, Q equals any unactivated allowance carried forward from that preceding reference period.
• The effect is that the pool of unactivated allowance available in any reference period combines newly generated allowance with any surplus brought forward from the prior period.